R2 billion looted: SIU uncovers 'devastating plunder of public funds' at Tembisa Hospital

The Special Investigating Unit (SIU) has unearthed wholesale looting at the Tembisa Hospital, following an intense investigation into allegations of corruption and maladministration at the public facility.

SIU head, Advocate Andy Mothibi, on Monday led the briefing and release of the interim report, joined by Minister of Health Dr Aaron Motsoaledi, Gauteng Premier Panyaza Lesufi, and Gauteng MEC for Health Nomantu Nkomo-Ralehoko.

"We can reveal today, through the SIU investigation, that evidence has revealed a number of maldistribution and other public procurement irregularities. This indeed will be described as a devastating plunder of the public funds, which we found in our probe. The investigation has uncovered, up to date, three coordinated syndicates responsible for the loss of over R2 billion," said Mothibi.

He said when the investigation commenced, at the instance of Gauteng premier's office back in 2022, around R850 million was believed to have vanished.

"This staggering sum of money intended for the provision of healthcare at Tembisa Hospital to take care of the most vulnerable was instead ruthlessly siphoned off through a complex web of fraud and corruption representing an egregious betrayal of the public trust," said Mothibi.

Earlier, SIU spokesperson Kaizer Kganyago confirmed that the report to be released is an interim update, with further findings expected as investigations continue.

"This media briefing is a significant step in the SIU's investigation, providing the public and stakeholders with a formal update on the investigation's progress and findings to date. The release of the interim report underscores the commitment to transparency and accountability in this matter," he said. 

Earlier this month, IOL reported that an investigation by the National Prosecuting Authority (NPA), driven by a report compiled by the late chief director of financial accounting at the Gauteng Department of Health, Babita Deokaran, has implicated President Cyril Ramaphosa’s nephew.

This was after the Asset Forfeiture Unit (AFU) seized assets belonging to businessman Hangwani Maumela, who had scored at least R415 million via contracts awarded by Tembisa Hospital.

Maumela is Ramaphosa’s nephew from a previous marriage.

However, the president has previously distanced himself from Maumela in Parliament, saying he did not know him.

Maumela and his entities were allegedly exposed in Deokaran's report when flagged as suspicious procurement deals at the hospital. 

Deokaran was assassinated in August 2021, three weeks after submitting a report detailing systemic abuse of the hospital’s supply chain processes.

Her findings prompted a deeper audit by the National Treasury’s Specialised Audit Service Unit, which confirmed Deokaran’s allegations of widespread corruption, revealing that 14 entities controlled by the Maumela syndicate unlawfully benefited from contracts worth R415m, while 18 entities controlled by Rudolph Mazibuko scored R300m through irregular means. 

jonisayi.maromo@iol.co.za

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