SIU Uncovers R2 Billion Fraud at Thembisa Hospital

The Special Investigating Unit (SIU) has uncovered large-scale corruption at Thembisa Hospital, revealing that more than R2 billion was siphoned from the public health facility through fraudulent procurement schemes.

According to the SIU’s interim report, multiple corruption syndicates operated within the hospital and the Gauteng Department of Health, manipulating supply chain processes, inflating contracts, and using front companies to loot funds meant for patient care.

Three Syndicates Under the Spotlight

The probe has so far exposed three major networks:

• One linked to businessman Hangwani Morgan Maumela, involving more than 1,700 procurement bundles.

• A second tied to Rudolph Mazibuko, with dozens of irregular contracts uncovered.

• A third, still unnamed, referred to as “Syndicate X,” remains under active investigation.

Together, these groups allegedly collaborated with hospital officials to channel billions into personal pockets while crippling the hospital’s capacity to serve the community.

Officials and Assets Implicated

At least 15 current and former officials have been directly linked to fraud, corruption, and collusion, while over 111 officials have been implicated in disciplinary hearings.

The Asset Forfeiture Unit has already moved to preserve luxury vehicles, high-end properties, and other assets linked to those under investigation. Among the frozen items are sports cars, luxury SUVs, and million-rand homes allegedly bought with the proceeds of fraud.

Years of Looting

The irregular spending stretches back as far as 2016, with the bulk of fraudulent activity taking place between 2020 and 2023. The SIU says contracts were deliberately overpriced, tenders rigged, and payments processed for services never rendered.

What Happens Next

The SIU is continuing its investigation and has promised to hand over criminal referrals to the National Prosecuting Authority (NPA) for possible prosecutions. Disciplinary processes against implicated officials have already begun, but the question of whether all the stolen funds can be recovered remains open.

The revelations have sent shockwaves across South Africa, with renewed calls for accountability in the health sector. The scandal also reignites the spotlight on the death of whistleblower Babita Deokaran, who was assassinated in 2021 after flagging suspicious payments at Thembisa Hospital.

As the investigation unfolds, the scandal underscores the devastating cost of corruption — not just in stolen billions, but in the lives of patients left to suffer in an under-resourced public health system.