The Special Investigating Unit (SIU) has frozen assets worth approximately R42.4 million in connection with a corruption scandal at Tembisa Hospital, where officials allegedly received bribes to manipulate procurement deals.
According to the SIU, businessman Stefan Joel Govindraju allegedly paid R100m in bribes to hospital officials, securing contracts valued at around R600m.
A preservation order granted by the Special Tribunal last month prevents implicated individuals and companies from disposing of assets linked to the scheme.
Key individuals and assets frozen
The order targets Zacharia Tshisele, his civil wife Phumudzo Tshisele, his customary wife Fulufhelo Lineth Tshililo and associates connected to them.
It also restrains dealings by former hospital officials, including Joseph Fhumulani Muthaphuli and Ernest Monnakgotla, who allegedly worked with Tshisele to siphon funds into syndicates.
Frozen assets include:
- R1 089 808.32 pension benefits belonging to Tshisele.
- A Birchleigh North property in Kempton Park valued at R1.3m.
A Delmore Park property in Boksburg valued at R820 000.
Syndicates exposed
The SIU investigation revealed two major syndicates operating at the hospital:
- The Govindraju syndicate, which used 75 companies to trade with the hospital, receiving approximately R600m.
- The Mazibuko syndicate, which used 17 companies and received R283m.
Both relied on corrupt cooperation from officials, including Tshisele and Monnakgotla, to bypass procurement rules.
Misuse of position
Tshisele, appointed operational manager of the hospital’s theatre in 2017, allegedly abused his role to initiate supply chain processes and confirm receipt of goods.
Transactions worth R15.9m were deliberately kept below the R500 000 threshold to avoid competitive bidding. Many of these payments were for goods that were unnecessary, undelivered or only partially delivered.
Funds were channelled through Create 10, a company co-directed by Tshisele, Monnakgotla and Muthaphuli. These financed mining ventures, property purchases and even a film project titled The Bad Bishop. Notably, R1.5m was transferred into the account of Tshisele’s nine-year-old daughter.
Repayments and further action
Tshisele signed an Acknowledgement of Debt in 2025, committing to repay unlawfully obtained funds. He has since repaid R13.5m in instalments. Manngwe Mining also agreed to repay R17.5m over 36 months.
Additional preservation orders include a R6.4m luxury property in Midstream Estate and R1.8m in pension benefits belonging to former hospital official Duduzile Nobungwana.
Criminal proceedings
The SIU has referred evidence of criminal conduct to the National Prosecuting Authority. Govindraju was arrested last month on 70 counts of fraud, theft, money laundering, and corruption-related offences.
The SIU says these measures are part of its mandate to protect public assets and eradicate corruption in state institutions.
- The Special Investigating Unit (SIU) has frozen assets worth approximately R42.4 million in connection with a corruption scandal at Tembisa Hospital, where officials allegedly received bribes to manipulate procurement deals.
- According to the SIU, businessman Stefan Joel Govindraju allegedly paid R100m in bribes to hospital officials, securing contracts valued at around R600m.
- A preservation order granted by the Special Tribunal last month prevents implicated individuals and companies from disposing of assets linked to the scheme.
- Key individuals and assets frozen The order targets Zacharia Tshisele, his civil wife Phumudzo Tshisele, his customary wife Fulufhelo Lineth Tshililo and associates connected to them.
- It also restrains dealings by former hospital officials, including Joseph Fhumulani Muthaphuli and Ernest Monnakgotla, who allegedly worked with Tshisele to siphon funds into syndicates.
