A Special Investigating Unit (SIU) report has found that suspended Gauteng health department head Lesiba Malotana benefitted to the tune of R1.6m in questionable ATM cash deposits, suspected to be linked to the R1.8bn looting at Tembisa Hospital.
The Sunday Times is in possession of a lifestyle audit report by the SIU, which describes Malotana as a “high-risk” individual and requests a special proclamation for a deeper forensic investigation into his financial affairs.
Malotana was suspended last week by Gauteng premier Panyaza Lesufi after he received the report — part of a widescale lifestyle audit of the provincial government’s senior officials — but its contents have been kept under wraps until now.
Malotana’s suspension has been linked to the SIU probe into corruption at Tembisa Hospital. Health government finance official and whistleblower Babita Deokaran was killed after uncovering the corruption.
According to the report — attached as an annexure to a letter by Malotana’s lawyers to Lesufi, challenging his suspension — the SIU found he had pocketed questionable financial benefits of R1.6m in cash transactions over a period of three years.
The SIU also raised concerns about Malotana’s six dubious bank accounts, some of which were not disclosed to the department. It is into these bank accounts that cash deposits — some as large as R300,000 — were made, at various ATMs across Gauteng.
According to the SIU, Malotana claimed these were business transactions linked to his “egg farming business” in Limpopo, but could not explain why all the deposits were made in Gauteng.
The SIU is understood to be looking into whether Malotana is doing business with the Tembisa and Pholosong hospitals as a possible supplier of eggs, or other business.
According to the report, an amount of R1,627,300 in cash deposits was traced across several bank accounts from commercial activities that could not be reconciled with Malotana’s salary.
There were unexplained financial transactions amounting to the receipts of R19,900 and outgoing payments of R47,943 between Pulse Management Consultants and Cedmas Funeral Services, who [are] linked to KGDEE Mash (Pty) Ltd,
“There were unexplained financial transactions amounting to the receipts of R19,900 and outgoing payments of R47,943 between Pulse Management Consultants and Cedmas Funeral Services, who [are] linked to KGDEE Mash (Pty) Ltd,” the report says.
“Further, it was established that KGDEE Mash is an active contracted service provider to Tembisa Hospital and Pholosong Hospital, which are institutions operating under Gauteng department of health jurisdiction — the same department in which the employee has occupied multiple senior executive positions, including chief operating officer and acting head of department (HOD).”
Approached for comment on Friday, Malotana said he was challenging his suspension in the high court on an urgent basis. “The matter is before the court. I have been advised that it would be inappropriate to comment at the moment,” he said.
He added that the matter would be heard on November 3.
The SIU also raised questions about Malotana’s livestock business in Limpopo, which they found to be operating “informally” as it did not have a signed lease for the property on which it is operating. This posed a compliance risk for both Malotana and the department.
Another red flag was a R300,000 transaction that Malotana claimed was a loan, but could not provide documentation for.
“The investigation revealed that the employee disclosed only four bank accounts; however, the Financial Intelligence Centre (FIC) report indicates that he is associated with six bank accounts.”
The SIU’s report says this raises serious concerns regarding the possibility of concealing illicit activities and other means of undisclosed income.
“According to the International Funds Transfer Reporting (IFTR) from FIC, both inward and outward transfers amounting to R201,306.26 during the review period were identified. These cross-border transactions were not disclosed by Mr Malotana during the lifestyle audit phase.”
The SIU said Malotana had failed to disclose his association with a certain nonprofit organisation and had also failed to submit bank statements for this entity for his lifestyle audit investigation process.
“He failed to disclose income-generating assets for two of his immovable properties [one in Halfway Gardens, Midrand; the other in Vorna Valley, Midrand] that were discovered during lifestyle investigation.”
A Sunday Times probe has found that a key figure in what the SIU calls Syndicate X is co-operating with the state, and is believed to have linked Malotana to certain main figures in the Tembisa Hospital plunder. It is on this basis that the SIU requested to take a closer look into his affairs.
It is on this basis that the SIU requested to take a closer look into the affairs of Malotana, who has been acting health HOD since 2023.
Malotana told the SIU that he runs a company called Pulse Management Consultants, but a check revealed that while the company was not active, its bank account was.
According to the report: “Despite the business entity being formally inactive, there are ongoing transactions within the employee’s personal and business accounts, which strongly suggest that business activities are still being conducted.
“Most business-related transactions are conducted through cash deposits rather than electronic transfers, which limits the traceability and transparency of funds.
“Based on the information provided, the employee appeared to be financially stable. However, this could not be conclusively determined as the full review period assessment was not conducted on all accounts during the audit.”
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