The Special Investigating Unit (SIU) of South Africa has obtained a preservation order to freeze approximately R42.4 million ($2.8 million) in assets. The assets include cash, properties, pensions, and investments linked to officials involved in the Tembisa Hospital scandal. This move aims to prevent the disposal of assets allegedly connected to corrupt activities.
The scandal involves allegations of R100 million in bribes paid to Tembisa Hospital officials. These bribes were allegedly given to secure procurement deals worth around R600 million. The SIU's investigation revealed that two major syndicates, allegedly operated by Zacharia Tshisele and others, used multiple companies to trade with the hospital. These syndicates received large sums of money through corrupt means.
The preservation order specifically targets assets belonging to Zacharia Tshisele, his wives, and entities associated with them. It also restrains payments and dealings by companies and individuals implicated in the corruption network. Former Area Manager at Tembisa Hospital, Ernest Monnakgotla, and Joseph Fhumulani Muthaphuli are among those implicated.
The Tembisa Hospital scandal refers to widespread corruption, overpricing, and mismanagement in the procurement of protective gear during the COVID-19 pandemic. The SIU's investigation found that Tshisele, as Operational Manager of the hospital's theatre, abused his position to facilitate unlawful procurement processes. This enabled payments to syndicate-linked companies for unnecessary or undelivered goods.
The SIU identified two syndicates linked to Tshisele. The first, allegedly run by Stefan Joel Govindraju, used 75 companies to trade with the hospital and received approximately R600 million. The second syndicate, operated by Rudolf Mduduzi Mazibuko, used 17 companies and received around R283 million. Both syndicates relied on corrupt cooperation from hospital officials.
The preservation order also prevents the Government Employees Pension Fund and Government Pensions Administration Agency from paying out Tshisele's pension, valued at more than R1 million. Additionally, two luxury properties have been frozen as part of the order. This move is part of a broader effort to recover assets and funds lost to corruption.
The SIU's actions aim to hold accountable those involved in the Tembisa Hospital scandal. The investigation and preservation order demonstrate the unit's commitment to combating corruption and recovering stolen assets. The case highlights the need for continued efforts to address corruption and ensure accountability in South Africa's public sector.
Key points
- The SIU secured a preservation order to freeze R42.4 million in assets linked to Tembisa Hospital officials accused of corruption.
- The scandal involves allegations of R100 million in bribes paid to secure procurement deals worth around R600 million.
- The preservation order targets assets of Zacharia Tshisele and others implicated in the corruption network.
