AFU targets Tembisa Hospital after Babita Deokaran report

The Asset Forfeiture Unit (AFU) of the National Prosecuting Authority has acted on the Johannesburg High Court order to restrain assets worth over R370 million linked to two syndicates implicated in fraud and corruption at Tembisa Hospital.

According to the NPA, the investigation was sparked by a report from the late Babita Deokaran, Chief Director, Financial Accounting at the Gauteng Department of Health, who was assassinated on August 23, 2021. Deokaran’s report exposed suspected procurement irregularities within the hospital’s Supply Chain Management, uncovering a web of illicit financial activities.

The National Treasury’s Specialised Audit Services Unit (SAS) conducted a review of Tembisa Hospital’s payment data, Central Supplier Database, and Companies and Intellectual Property Commission records from April 2016 to August 2022. The investigation confirmed Deokaran’s allegations of large-scale corruption, revealing that 14 entities controlled by the Maumela syndicate unlawfully benefited from contracts worth over R400 million, while 18 entities tied to the Mazibuko syndicate reaped over R300 million through irregular means.

High-end assets worth millions 

On August 14, 2025, the AFU secured an order targeting assets owned by the Maumela syndicate, valued at approximately R326 million. These assets include high-end residential properties in affluent areas, luxury vehicles such as four Lamborghinis, a Bentley, and a boat. Two weeks later, on August 27, 2025, a second order was granted against the Mazibuko syndicate, freezing assets worth R47 million, including premium properties and vehicles like three Mercedes-Benz cars valued at R10 million combined and a R2 million Land Rover.

Forensic investigations, supported by appointed firms, uncovered widespread irregularities in Tembisa Hospital’s procurement processes between January 2019 and August 2022. The syndicates manipulated bidding processes, with some companies denying they submitted quotes, while others acted as cover bidders to ensure contracts were awarded to syndicate-linked entities. Analysis of fund flows showed that the majority of the money was used to purchase assets, pay bribes, and fund extravagant lifestyles, with only a small fraction potentially used for legitimate supplies.

Advocate Ouma Rabaji-Rasethaba, Deputy National Director of the National Prosecuting Authority overseeing the AFU, emphasised the broader impact of such corruption.

“When there is no water, when there is no electricity, no textbooks, no medication, no hospitals, we are all suffering.”

She described the denial of healthcare to South Africans as a travesty of justice.

 

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