Hawks Arrest Businessman In R2 Billion Tembisa Hospital Tender Fraud Case
A 37-year-old businessman has been arrested in connection with an alleged procurement fraud and corruption scheme involving more than R2 billion at Tembisa Hospital.
The Hawks have arrested a 37-year-old businessman in connection with an investigation into alleged fraud, corruption and money laundering linked to procurement at Tembisa Hospital in Gauteng.
The suspect was arrested at OR Tambo International Airport on Saturday after returning from a trip abroad.
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According to the Hawks, the case concerns allegations that the businessman, believed to be a service provider, colluded with officials from the Gauteng Department of Health to manipulate procurement transactions and bypass formal tender procedures.
He is expected to appear in court on Monday.
Investigation Traces Back To Tembisa Hospital Scandal
The case forms part of a wider investigation into alleged financial misconduct at Tembisa Hospital that was brought to public attention by whistleblower Babita Deokaran before her assassination five years ago.
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The Special Investigating Unit (SIU) disclosed details of its investigation into the hospital last year, saying it had uncovered three syndicates allegedly involved in the looting of more than R2 billion in hospital funds.
The syndicates were allegedly operated by businessmen Stefan Govindraju, Hangwani Maumela and Rudolph Mazibuko, together with their respective suppliers.
Investigators found that payments were allegedly divided into smaller transactions to keep individual purchases below the R500,000 threshold and avoid the formal tender process.
More than 4,000 transactions were reportedly identified as part of the investigation.
Hawks Confirm Court Appearance
The alleged procurement irregularities included payments of R40,000 for four plastic buckets, 2,000 hand towels priced at R230 each and 200 pairs of jeans costing about R2,500 per pair.
Hawks spokesperson Katlego Mogale confirmed the latest arrest and said the suspect would face charges in the specialised commercial crimes court.
“This approach was intentionally employed to circumvent the formal tender process. The suspect is to appear in the Specialised Commercial Crimes Court, sitting in the Palm Ridge Magistrates Court, facing charges related to fraud, corruption, and money laundering.”
The suspect's name has not been released. He may only be identified after he has appeared in court, in line with the current status of the case.
The allegations have not been tested in court, and the accused is presumed innocent unless proven guilty.
