Health Department

Johannesburg – The national Health Department is taking strong steps to hold accountable the companies behind the R2 billion looting at Tembisa Hospital, asking the Special Investigating Unit to start blacklisting them from state business. This move comes after an interim report exposed a web of corruption, fraud, and bad management in buying processes, involving three big groups that stole public money meant for patient care. Health Minister Aaron Motsoaledi shared that the SIU is sending the names to National Treasury for blacklisting, but ActionSA has complained to the Public Protector because none of the 207 involved suppliers have been blocked yet. The scandal, which came to light after the murder of whistleblower Babita Deokaran in 2021, shows how weak checks let crooks siphon funds for luxury lives while hospitals struggled. As the country fights corruption in public health, this case highlights the need for faster punishments to stop repeat offenders and protect taxpayer money for better services.
SIU Report Uncovers Massive Looting Network
The SIU’s interim report, released last month, found a big corruption setup at Tembisa Hospital from 2020 to 2022. It involved 207 service providers who got deals through 4,501 irregular purchase orders, leading to over R2.2 billion in wasted money. Three main groups ran the scheme, using fake tenders for things like cleaning, PPE, and medical supplies, often at prices way above normal.
One group focused on overpriced goods like gloves and masks during COVID, while another faked bids to win contracts without real work. The third used shell companies to hide the money trail. Some suppliers bought fancy cars, houses, and even farms with the stolen cash, showing how deep the theft went. The report said bad governance, like skipping rules and weak oversight, let this happen, hurting patient care with short supplies and poor services.
Babita Deokaran, the hospital’s acting CFO, flagged these odd payments before her killing in August 2021. Her death sparked the SIU probe, and nine people, including a businessman and hitmen, are on trial for her murder. This tragic loss shows the dangers whistleblowers face when exposing graft in public places.
Motsoaledi’s Response: Blacklisting and Special Checks
Minister Aaron Motsoaledi revealed the push for blacklisting when answering questions from ActionSA MP Alan Beesley. Beesley asked why none of the suppliers have been blacklisted and what caused the delay. Motsoaledi explained the National Health Council (NHC), made up of him and provincial MECs, met after the report came out.
He said the NHC asked the SIU to blacklist the companies, as the department cannot do it alone. “The response we got was that only the National Treasury can blacklist companies from participating in government contracts. The SIU informed us that they are submitting the names of these companies to National Treasury for the purpose of blacklisting,” Motsoaledi said. He added they will wait for Treasury’s steps to finish.
In reply to ActionSA’s Kgosi Letlape, Motsoaledi said the department wants extra careful checks on these companies. “In the meantime, SIU has been asked to submit to provinces the list of such companies so that even if there is no blacklisting yet, the heads of department pay special due diligence and investigations before they finalise an award to such companies if bid adjudication committees have recommended them,” he explained.
The NHC also plans a workshop later this month for department heads, hospital CEOs, and CFOs to talk about ways to protect systems from more theft, like stronger checks on buys.
ActionSA’s Complaint to Public Protector: No Blacklisting Yet
ActionSA has raised big worries about the slow pace, saying none of the 207 suppliers are blacklisted yet. MP Alan Beesley said this lets them keep doing state business. “This means that the individuals and companies who siphoned off billions meant for public health services to buy palatial mansions and Lamborghinis are still able to do business with the state,” he said.
Beesley argued blacklisting is a team effort involving hospital CEOs, department heads, Treasury, and the Presidency. “However, in practice, this collective responsibility has translated into no responsibility.” The Standing Committee on Public Accounts heard earlier this year that 467 people and companies were suggested for the Restricted Supplier Register, but only one was added.
ActionSA has taken action by complaining to the Public Protector about this “systemic maladministration.” They hope the probe will find why blacklisting is delayed and push for fixes. Beesley said his party will also bring new laws to give Treasury more power to act fast against corrupt suppliers, stopping them from ever getting state deals again.
The Tembisa Scandal: A Web of Fraud and Loss
The looting at Tembisa Hospital happened from 2020 to 2022, during COVID when needs for supplies were high. The SIU found three groups ran the scam, using fake companies and overpriced deals to steal funds. Items like gloves were bought at five times the normal price, and some suppliers had ties to hospital staff.
The hospital, serving over a million people in Gauteng, suffered from short supplies, leading to poor care. Deokaran’s flags on odd payments of R850 million to 200 companies sparked her killing, showing how far some go to hide theft. The SIU has recovered R50 million so far and frozen assets, but full justice is slow.
Gauteng Health has suspended some staff and started internal fixes, but critics say it’s not enough. The scandal has cost lives, with patients dying from lack of basics like oxygen during peaks.

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Health Department

Health Department Pushes for Blacklisting in R2 Billion Tembisa Hospital Looting Scandal as ActionSA Demands Urgent Action

Health Department

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