The question of why Tembisa Hospital, of all health facilities in Gauteng, became the epicentre of a R2bn corruption scandal has loomed large since the assassination of whistleblower Babita Deokaran in 2021.
An interim report by the Special Investigating Unit (SIU) released on Monday has shed light on the matter: it was the hospital’s leadership who opened the floodgates.
According to Gauteng health MEC Nomantu Nkomo-Ralehoko, corruption thrived at Tembisa Hospital because the then-CEO Dr Ashley Mthunzi was at the helm of the scheme.
Mthunzi, who died last year, was placed on precautionary suspension in August 2022 after allegations of irregular procurement and payments made to service providers. His appointment initially raised hopes of reform. He was profiled in the Sowetan as a “Mr Fix It” intent on turning Tembisa Hospital into a “health-care provider of choice”. Yet within weeks, his name was tied to one of South Africa’s most audacious looting scandals.
“There has been a lingering question as to why corruption took place at Tembisa Hospital and it was because the person who led the corruption team was the CEO,” Nkomo-Ralehoko said.
SIU findings: orchestrated syndicates
SIU head advocate Andy Mothibi said Mthunzi authorised non-compliant bidders, effectively greenlighting the corruption networks. The probe uncovered three syndicates that systematically looted the hospital.
“In any procurement process there are unsuccessful bidders, but our investigation found that even the ‘losers’ were part of the syndicates. They knew they wouldn’t win, but when they didn’t they were still paid,” Mothibi said.
The SIU traced links between winning and losing bidders through money transfers, shared directorships and family connections. More than R1m has so far been identified as payments made directly or indirectly from successful bidders to supposedly unsuccessful competitors.
Lower-level officials implicated
Corruption was not confined to executives, however.
“It is at the lower level, particularly procurement, where the damage is caused. These are employees who have cost Tembisa Hospital significant losses,” Mothibi said, warning the same pattern had emerged in other probes, such as home affairs’ refugee processing system.
According to the SIU report:
- six hospital managers and their relatives received payments linked to syndicates worth more than R110m;
- an assistant nurse is under investigation for receiving R7.3m;
- five clerks are linked to payments exceeding R140m; and
- a medical staff member received R750,000.
Nkomo-Ralehoko said the province has implemented tighter supply chain controls. All procurement transactions between R500,000 and R1m must now undergo mandatory vetting and approval by the Gauteng Treasury.
“We have introduced quotation adjudication committees and every month all hospital CEOs and finance managers account to me on their finances in the presence of Treasury officials,” she said.
Gauteng premier Panyaza Lesufi added that lifestyle audits for supply chain managers were near completion, despite resistance.
“We are strengthening our tender systems so that adjudications take place publicly, in the presence of communities, instead of behind closed doors,” he said.
Activist Mark Heywood said the looting has had devastating consequences.
“This has greatly affected service delivery. Patients are left to suffer with a shortage of beds and, at times, essential medication,” he said.
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