The Special Investigating Unit (SIU) says it has its eyes set on Stefan Joel Govindraju, one of the alleged kingpins central in the R2bn Tembisa Hospital looting frenzy.
Govindraju had 73 companies directly doing business with the Ekurhuleni hospital at the height of its looting between 2018 and 2020. His companies raked in more than R500m through irregular contracts.
This week the SIU announced it has successfully secured preservation orders for Duduzile Nkosazana Nobungwana’s R1.8m pension and R6.4m property she and her son Oscar bought from Govindraju’s alleged kickbacks.
According to the SIU, Nobungwana — who was a member of the Tembisa Hospital supply chain committee — allegedly channelled more than R10m worth of the hospital’s contracts to Govindraju’s companies.
“We have not frozen any assets belonging to Govindraju. At this stage the matter remains focused on Duduzile Nkosazana Nobungwana. However, investigations involving Govindraju are ongoing and the SIU is coming for him,” SIU spokesperson Selby Makgotho told Sowetan.
The syndicate is allegedly linked to controversial tenderpreneur and attempted murder accused Vusimusi “Cat” Matlala, whose companies scored contracts worth R14m at the hospital
Investigators allege Nobungwana and Govindraju formed part of “Syndicate X”, one of three major syndicates identified in the SIU’s interim report into corruption at the hospital.
The syndicate is allegedly linked to controversial tenderpreneur and attempted murder accused Vusimusi “Cat” Matlala, whose companies scored contracts worth R14m at the hospital.
The report found more than R2bn intended for health-care services was “ruthlessly siphoned” through fraud, bid rigging and money laundering involving hospital officials and politically connected businesspeople. Hospital managers allegedly received substantial payments from syndicates, the main three of which were:
- one led by Hangwani Morgan Maumela, who pocketed R816m;
- Syndicate X, which made R596m; and
- another led Richard Mazibuko, who scored more than R283m.
The report revealed 15 former and current hospital employees, including Gauteng health department workers, were paid more than R122m.
In some of the transactions traced through personal bank accounts:
- an assistant nurse was paid R7.3m by two syndicates and the money was transferred to the nurse’s family members;
- a senior hospital manager received R30m from the Maumela syndicate; and
- a medical staff member received R750,000 in kickbacks.
SIU head Andy Mothibi said corrupt payments linked Syndicate X to 32 accounts associated with current and former health department or Tembisa Hospital officials totalling R56m. He said the corrupt officials were responsible for:
- identifying the need, sourcing service providers linked to Syndicate X, adjudicating and recommending the appointment of these service providers;
- approving the appointment of the service providers;
- certifying compliance with regulations;
- issuing POs [purchase orders];
- confirming goods were delivered; and
- allowing payments to be made to the tainted service providers.
The SIU said it had prepared 116 disciplinary referrals against officials, of which 108 relating to the irregular appointments of service providers were delivered to the department. Four corruption matters were referred to the National Prosecuting Authority, while 25 other matters have been sent to the South African Health Products Regulatory Authority regarding the noncompliance of service providers who were not licensed to distribute medical supplies.
Mothibi said service providers were appointed using fraudulent documents for a flawed three quote system. “This [was] to bypass tender processes, keeping transaction values under R500,000. This deliberate splitting of orders violated the department’s procurement policy, which prohibits subdividing requirements to evade competitive bidding,” he said.
The SIU report noted during the height of corruption at the hospital the expenditure for medical supplies increased significantly from R315m to R598m, while patient intake did not fluctuate significantly.
Sowetan
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