The Special Investigating Unit (SIU) has obtained a preservation order from the Special Tribunal to freeze approximately R42.4 million in assets allegedly linked to bribery and procurement fraud at Tembisa Hospital. The order covers cash, properties, pensions, and investments belonging to individuals and entities connected to the corruption network. The SIU's investigation revealed that the assets were linked to bribes allegedly paid to officials at Tembisa Hospital to secure procurement deals worth approximately R600 million.
The preservation order specifically targets Zacharia Tshisele, his civil and customary wives, and entities associated with them. Tshisele, the former Operational Manager of the hospital's theatre, allegedly worked with Ernest Monnakgotla, a former Area Manager at Tembisa Hospital, to siphon funds from the hospital's coffers into two major syndicates. The order also restrains payments and dealings by companies and individuals implicated in the corruption network, including Joseph Fhumulani Muthaphuli.
The SIU's investigation revealed that two of the three major syndicates operating at Tembisa Hospital were linked to Tshisele. The first was the Govindraju syndicate, run by Stefan Joel Govindraju, which used 75 companies to trade with the hospital and received approximately R600 million. Govindraju was arrested in August and granted R200,000 bail. The second syndicate was the Mazibuko syndicate, operated by Rudolf Mduduzi Mazibuko, which used 17 companies to trade with the hospital and received approximately R283 million.
The SIU found that Tshisele abused his position to initiate supply chain processes and confirm receipt of goods, enabling payments to syndicate-linked companies. He was directly involved in transactions worth approximately R15.9 million, each kept below the R500,000 threshold to avoid competitive bidding. The transactions were often unnecessary, undelivered, or only partially delivered, violating the Constitution, the Public Finance Management Act, and other regulations.
Funds from the Govindraju syndicate were channelled through Create 10, co-directed by Tshisele, Monnakgotla, and Muthaphuli. These funds financed properties, mining ventures, and a film project. Tshisele and Monnakgotla invested R17.5 million in Manngwe Mining and Solmag Mining, while R15.5 million was advanced through Time Bomb towards the production of a movie titled "The Bad Bishop".
The Tribunal order directed Manngwe Mining, Solmag Mining, and Time Bomb to pay all amounts due under their funding agreements into the trust account of the SIU's attorneys. It also barred Create 10 and its directors from disposing of assets, declaring dividends, or incurring new liabilities outside the ordinary course of business. In 2025, Tshisele signed an Acknowledgement of Debt with the SIU, committing to repay unlawfully obtained funds.
Tshisele has since repaid R13,530,894.27 in four instalments. Manngwe Mining also agreed to repay R17.5 million over 36 months. The SIU obtained an order freezing a R6.4 million luxury property in Midstream Estate and R1.8 million in pension benefits belonging to former Tembisa Hospital official Duduzile Nobungwana. The total value of preserved cash and assets now stands at approximately R42.4 million.
Key points
- The SIU has secured a preservation order to freeze R42.4 million in assets linked to corruption at Tembisa Hospital.
- The assets were linked to bribes allegedly paid to officials at Tembisa Hospital to secure procurement deals worth approximately R600 million.
- The SIU's investigation revealed that two major syndicates operating at Tembisa Hospital were linked to Zacharia Tshisele, the former Operational Manager of the hospital's theatre.
