Tembisa Hospital CEO's wife says he is a scapegoat in R2 Billion corruption scandal

Former Tembisa Hospital CEO Ashley Mthunzi, who passed away last year, has been implicated the Special Investigating Unit (SIU) report into corruption and maladministration as a central figure in the R2 Billion corruption scandal at the facility.

Despite being implicated as a crucial cog in the massive corruption scandal involving fraudulent contracts and irregular procurement practices, Mthunzi's wife Lerato claims her husband has been used as a scapegoat to protect “politicians and criminals” who are involved and who stole from the public purse. 

Lerato Mthunzi said she will challenge the findings of the SIU.

An interim report, released on Monday, revealed that Mthunzi authorised appointments of non-compliant bidders, and that the purchase orders sent to the Gauteng Health Department contained irregular certificates that were never questioned by provincial employees. The prices were also inflated.

The investigation, initially meant to probe expenditure at the hospital from January 2020 to September 2023, expanded its scope to investigate transactions from 2018 to 2024. 

Investigators analysed 2,207 procurement bundles, which revealed irregular, fraudulent and corrupt transactions involving at least three syndicates responsible for the looting of over R2 billion that was meant for the provision of healthcare services.

The interim report also highlighted that many goods from the service providers may not have been delivered, indicating a possible failure to meet their contractual obligations for medicine and supplies. 

Whistleblower Babita Deokaran identified irregularities in 2021, before her assassination.

Lerato Mthunzi, who is also the spokesperson for Independent Health and Allied Workers Union (IHAWU), said the service providers were already in business with the health department and the hospital when Mthunzi was appointed as CEO in 2021, and that it was not fair to put the blame on him.

Prior to taking up the post at Tembisa Hospital, Ashley Mthunzi worked as the head of Pholosong Regional Hospital in Brakpan, where his tenure was marred by a misconduct investigation for flouting human resources procedures and irregularly appointing staff.

He held a bachelor of medicine and surgery degree, along with a postgraduate diploma in occupational medicine and health.

“He worked hard to build his legacy, it is just unfair that all had to be taken away by greedy and heartless politicians and criminals. I will await the SIU full report and take it from there with my legal team," she said.

Lerato Mthunzi said the appointment of the dubious contractors had been authorised by the previous CEOs and that her husband could not terminate these contracts as this would result in a legal challenge, which would have cost the department more money. 

She said these service providers also provide services for all hospitals across Gauteng. 

“This is a historic issue,’’ Lerato said.

“When he was requested to act in the position from April and May 2021, those people were already suppliers. He also had engagements with the MEC because they were failing to deliver and they complained that the hospital owed them (money). At no point did he appoint the bidders, he walked into this thing blindly.”

Mthunzi was suspended in August 2022 as Tembisa Hospital CEO amid the SIU investigation.

His suspension was based on his alleged role in awarding irregular contracts to service providers. He was suspended together with Lerato Madyo, the chief financial officer (CFO) of the Gauteng Department of Health.

Last year, the Public Protector found that Gauteng Health Department officials acted irregularly during the recruitment and selection of Mthunzi as the CEO of Tembisa Hospital, saying they engaged in “improper conduct and maladministration".

The report revealed that he made “material inaccuracies” on his application and interview panel members failed to follow up on discrepancies.

Mthunzi passed away in April 2024, due to illness, while he was still on suspension and undergoing a lengthy disciplinary process.

The Gauteng Department of Health said during the SIU investigation, the department was advised not to continue to utilise the flagged service providers.

"This was communicated to all institutions, to cease the utilisation of the flagged service providers," the department said.

Lerato maintains that her husband is innocent, adding that he 'has been used as a scapegoat to protect bigger players'.

“They already knew what they were working on. This thing goes way back. All these politicians had their hand in the cookie jar and they knew they would get away with impunity,” she said.

Asked how the SIU will recoup money from Mthunzi, spokesperson Kaizer Kganyago said he is not in position to indicate such sensitive information to the public until all legal processes are finalised.

In a statement issued by Lerato Mthunzi on behalf of IHAWU, the union said the findings of the interim report confirms what the union has consistently been warning, that the crisis at Tembisa Hospital is the product of entrenched political interference, corrupt procurement networks, and systemic collapse within the Gauteng Department of Health.

“This revolving leadership where both CEOs and the CFO have been subject to suspension demonstrates that the crisis at Tembisa Hospital cannot be reduced to the failings of one or two individuals. Successive leaders, whether full-time or acting, were entangled in the same web of political interference and systemic corruption. The attempt to scapegoat hospital management while protecting higher-level political actors was always a strategy to deflect blame.”

manyane.manyane@inl.co.za