Health Minister
South Africa’s health sector has been hit hard by a massive corruption scandal at Tembisa Hospital, where billions meant for patient care were stolen. Health Minister Dr Aaron Motsoaledi has made it clear that even death will not stop justice for those involved. He has vowed to go after the estate of the late CEO, Dr Ashley Mthunzi, who played a key role in the mess.
This comes as the Special Investigating Unit uncovers a web of fraud that has left the hospital struggling and communities suffering.
The scandal, which has grown to over R2 billion in looted funds, shows how syndicates and officials worked together to drain public money. Motsoaledi, speaking out strongly, said the corruption is a betrayal of trust and called for harsh punishments to stop it from happening again.
The Shocking Scale of the Tembisa Hospital Scandal
The trouble at Tembisa Provincial Tertiary Hospital came to light after whistleblower Babita Deokaran flagged suspicious payments in 2021.
She was shot 12 times and killed outside her home in Johannesburg, just days after her report. [22] Her brave act exposed irregular tenders worth hundreds of millions, but the full picture is much worse.
The Special Investigating Unit’s interim report, released last month, shows three main syndicates stole over R2 billion through fake deals and overpriced goods.
This money was meant for healthcare but ended up in private pockets. The probe looked at 207 service providers and 4,501 purchase orders, each tied to a fake three-quote process.
One syndicate, led by Hangwani Morgan Maumela, handled 1,728 bundles worth R816 million.
Maumela’s companies got about R356 million.
Another, run by Rudolph Mazibuko, grabbed R249 million in contracts. Vusimuzi “Cat” Matlala’s group took R13 million through linked firms.
These groups used shell companies, fake documents, and bribes to win bids.
At least 15 current and former officials were part of it, facing charges like corruption, money laundering, and bid rigging. [11] The report calls it a deep-rooted pattern of fraud, with weak oversight letting it happen.
Items like hospital beds cost up to R2.3 million each, way over normal prices.
Role of Late CEO Dr Ashley Mthunzi in the Corruption
Dr Ashley Mthunzi, who was CEO at the time, is named as a central figure.
He authorised non-compliant bidders and signed off on purchase orders with inflated prices.
These went to the Gauteng Health Department without questions, even though red flags were clear.
Mthunzi was suspended when the scandal broke but died on 24 April 2024 after a short illness.
His death came more than a year before the interim report, but the probe kept going. The report shows he failed in basic checks, like ensuring tenders followed rules.
His widow, Lerato Mthunzi, who leads the Health and Allied Workers Indaba Trade Union, says he was made a scapegoat.
She did not comment on the latest statements, but has defended him in the past.
Motsoaledi stressed that death does not end accountability. “You are aware that the CEO in Tembisa who has been fingered is late, but he has an estate. So the fact that he is late does not mean that the case is over, is closed,” he said on radio.
The unit can seize assets bought with dirty money, even from estates.
Crackdown on Officials and Asset Seizures
The scandal implicates 111 officials, with nine hospital workers directly named, including Mthunzi.
Six have been suspended, one retired, one resigned, and one stopped working.
A mid-level manager got R30 million from the deals, and the unit will chase his houses and cars.
Former Gauteng Health CFO Lerato Madyo resigned while facing claims she ignored Deokaran’s report.
Motsoaledi said rules let people quit, but criminal cases continue. He gave an example from his time at Home Affairs, where a worker died before arrest, but the probe went on.
The unit has already acted against Maumela, seizing his Sandton home and three Lamborghinis.
Assets worth over R370 million have been frozen across the syndicates. [22] Motsoaledi called these officials “dead meat” and said more seizures are coming. “What you have seen last week by the SIU confiscating properties of Maumela is going to happen to all these government officials,” he warned.
The national department will handle disciplinary actions, not the province, because some work there.
The unit can only take assets, not charge crimes – that goes to prosecutors.
Motsoaledi’s Outrage and Call for Tougher Measures
Motsoaledi was shocked by the scale, calling it high treason.
“I appreciate why China executes corrupt people,” he said, showing his frustration.
He wants big figures exposed and honest workers protected.
He described the findings as a betrayal, with resources for the vulnerable stolen.
The minister backs quick prosecutions and reclaiming every cent.
He said this is just the start, like the tip of an iceberg.
The National Health Council met with MECs and others to tackle corruption in health.
CEOs from major hospitals will attend a workshop where the unit explains syndicate tricks to stop future crimes.
Impact on the Hospital and Community
Tembisa Hospital serves a poor area, but corruption left it in bad shape.
Two fires in 2025 damaged parts, one started by a security guard.
Repairs cost R14 million, but patients faced long waits and poor conditions, like dimly lit toilets.
Community leaders say the R2 billion could have fixed these issues.
People borrow money to go to other hospitals, and trust is low.
A old video of patient mistreatment resurfaced, but the department says things have improved.
The scandal hurts service delivery, with money for beds and supplies gone.
It is one of the biggest health frauds in the country’s history.
Ongoing Probes and Calls for Justice
The investigation started after Deokaran’s report, with a proclamation in 2023.
It is complex and ongoing, with more to come.  The unit wants to fix systems to prevent repeats. 
Parliament’s health committee chair called for consequences to rebuild trust.  They will meet the department and unit for updates. 
Questions remain about oversight under former ministers like Zweli Mkhize.  Motsoaledi wants all hospitals checked, not just reacting to scandals. 
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