Criminal syndicates operating in South Africa looted more than R2 billion from Tembisa Hospital, spending the stolen funds on luxury assets including Lamborghinis, a Bentley, exclusive properties, and a high-end boat, according to an interim report released by the Special Investigating Unit (SIU).
The investigation has uncovered a vast network of fraud and corruption involving at least three major crime syndicates, several smaller groups, and a number of government officials and healthcare workers.
Goods never delivered
The syndicates allegedly worked with insiders to bypass procurement processes, submit fake documents, and receive payments for goods that were never delivered.
“This staggering sum, intended for the provision of health care to the most vulnerable, was instead ruthlessly siphoned off through a complex web of fraud and corruption, representing an egregious betrayal of the nation’s trust,” the SIU said.
The scandal centres around Tembisa Hospital in Gauteng, north of Johannesburg, and comes just four years after the assassination of Babita Deokaran, a whistleblower and senior health official who had flagged suspicious payments at the hospital before she was murdered in 2021.
According to the SIU, at least 15 current and former government officials have been implicated in the scheme.
The report describes how these officials either actively participated in the corruption or turned a blind eye to fraudulent procurement activities.
The investigation has already resulted in the referral of evidence to the National Prosecuting Authority, the South African Health Products Regulatory Authority, and the Gauteng Department of Health.
Civil recovery proceedings are also being prepared, including efforts to freeze and recover assets acquired through the looted funds.
The SIU expects to complete its full investigation by November 2027.
Concerns over proposed NHI system
The revelations have intensified concerns over the government’s proposed National Health Insurance (NHI) system, which aims to centralise all public and private healthcare funding through a single state-controlled fund.
Critics have raised alarms over the potential for large-scale corruption, with estimates suggesting the NHI fund could manage anywhere from R250 billion to over R1 trillion annually.
Despite assurances from President Cyril Ramaphosa that safeguards are in place to prevent corruption under the NHI, many remain sceptical given the country’s poor track record in managing public finances.
The NHI legislation includes penalties of up to R100 000 in fines or five years in prison for fraud, but some experts argue that existing laws have already failed to prevent widespread graft.
The Tembisa Hospital case has become a symbol of broader governance failures in South Africa, where corruption continues to undermine the delivery of essential public services, from healthcare and electricity to transportation and sanitation.
As the investigation continues, pressure is mounting on the government to ensure accountability and prevent future looting of state resources.
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