Former Tembisa Hospital clerk risks losing R1.8m pension fund

The state has successfully blocked an R1.8m pension of a former Tembisa Hospital supply chain clerk accused of being part of a syndicate that looted the institution of about R2bn.

The Special Investigations Unit (SIU) also granted a preservation order to a R6.4m luxury property at Midstream Estate, which is suspected of having been bought with the proceeds of the Tembisa Hospital looting.

Duduzile Nkosazana Nobungwana, who started at the hospital as a general assistant in 1992, resigned in the middle of a disciplinary hearing in 2024, according to the SIU.

Nobungwana was promoted as a chief supply chain clerk and vetting committee member in 2018. The SIU alleges that she assisted Diolinx, a company owned by Stefan Govindraju, in getting tenders from the hospital without meeting certain requirements. The company was not registered with the medicine regulator, South African Health Products Regulatory Authority.

The special tribunal granted the order to prevent the sale of the Midstream Estate property and to preserve assets suspected to be proceeds of unlawful activities linked to a major procurement network at the hospital known as “Syndicate X”.

SIU spokesperson Selby Makgotho said investigations uncovered that the luxury Midstream Estate property was allegedly purchased using funds derived from secret profits, kickbacks and bribes paid by suppliers conducting business with Tembisa Hospital.

Makgotho said the SIU investigation revealed that Nobungwana, who served in several key positions at the hospital, allegedly played a central role in the irregular adjudication and appointment of suppliers.

“She is alleged to have received undisclosed, undue gratification from certain suppliers, thereby violating her duties without disclosing it to her employer.

“Part of the alleged illicit payments was channelled through a front company, Mabitwa Trading, to finance the purchase of the Midstream property. The property was allegedly bought through Mabitwa Trading and registered under Amatibe Holding, a company owned and directed by her son, Oscar Nobungwana,” said Makgotho.

The SIU also revealed that “Syndicate X” is linked to Govindraju. Investigators found that Govindraju is the director of at least 75 companies, 73 of which were allegedly irregularly appointed at Tembisa Hospital.

The entities reportedly secured 1,237 contracts through a three-quote procurement process that allegedly failed to comply with procurement regulations.

“The SIU’s probe revealed that the Govindraju-linked suppliers allegedly received total payments of approximately R596,424,356.10 arising from these contracts, which are considered highly irregular and non-compliant.”

The SIU further identified about R100m in payments from the alleged Govindraju syndicate to former and current Tembisa Hospital officials involved in supply chain management, which are suspected of constituting undue gratification.

In addition to the property preservation order, the SIU also secured an interdict over Nobungwana’s pension benefits held by the Government Employees Pension Fund and administered by the Government Pensions Administration Agency.

The order prevents pension administrators from paying out the funds pending the finalisation of civil proceedings aimed at recovering losses suffered by the state.

Makgotho said that “Nobungwana’s alleged misconduct contributed to irregular expenditure of at least R5.1m and damages of approximately R13.6m to the state”.

The unit added that the preserved pension benefits may form part of the asset pool used to compensate the public purse, subject to the tribunal’s final decision.

The SIU said evidence of criminal conduct uncovered during the investigation has been referred to the National Prosecuting Authority for further action.

Sowetan