GAUTENG – A major financial blow has been dealt to the Tembisa Hospital corruption scandal as the Special Investigating Unit (SIU) successfully secured a preservation order freezing approximately R42.4 million in assets. The freeze targets cash, properties, pensions, and investments allegedly tied to the widespread mismanagement and bribery surrounding the procurement of protective gear during the COVID-19 pandemic.
According to an SIU spokesperson, the Special Tribunal granted the order to prevent the disposal of assets belonging to Zacharia Tshisele, his civil wife Phumudzo Tshisele, his customary wife Fulufhelo Lineth Tshililo, and their connected entities and associates.
The SIU spokesperson noted that the order also restrains financial dealings and payments involving individuals and companies implicated in the corruption network. This includes Joseph Fhumulani Muthaphuli and Ernest Monnakgotla, a former Area Manager and member of the hospital’s Quotation Adjudication Committee. The preservation order is directly linked to allegations that R100 million in bribes were paid to hospital officials to secure procurement deals totaling roughly R600 million.
Frozen Pensions and Luxury Properties
As part of the sweeping financial freeze, the Government Employees Pension Fund and the Government Pensions Administration Agency have been barred from paying out Tshisele’s pension, which is valued at over R1 million.
Additionally, the SIU spokesperson confirmed that the investigation led to the freezing of two luxury, high-value properties linked to the suspects to ensure the assets remain intact for potential future recovery.
Unpacking the Procurement Syndicates
The investigation revealed that Tshisele and Monnakgotla allegedly collaborated to siphon public funds from the hospital’s coffers into two major syndicates. Both networks reportedly relied on the corrupt cooperation of the hospital officials to facilitate unlawful procurement.
The SIU spokesperson detailed the two primary syndicates operating within the facility:
The Govindraju Syndicate: Allegedly run by Stefan Joel Govindraju, this network used 75 companies to trade with the hospital and received approximately R600 million.
The Mazibuko Syndicate: Allegedly operated by Rudolf Mduduzi Mazibuko, this group utilized 17 companies to trade with the hospital and received roughly R283 million.
Modus Operandi and Legislative Violations
The corruption-busting unit alleges that Tshisele, while serving as the Operational Manager of the hospital’s theatre in 2017, abused his position to initiate supply chain processes and confirm the receipt of goods. This allegedly enabled illicit payments to companies linked to the syndicates.
The SIU spokesperson highlighted that Tshisele was directly involved in transactions worth about R15.9 million. Crucially, each transaction was deliberately kept below the R500,000 threshold to bypass competitive bidding requirements.
Many of these transactions were reportedly unnecessary, undelivered, or only partially delivered. The SIU stated that these actions constitute severe violations of the Constitution, the Public Finance Management Act, the Public Service Act, Treasury Regulations, and the Prevention and Combating of Corrupt Activities Act.