South Africa’s Special Investigating Unit (SIU) has revealed what it calls a “devastating plunder of the public purse” at Tembisa Hospital.
How Vusi ‘Cat’ Matlala pillaged R2 billion from Tembisa Hospital
At a press briefing on Monday, SIU head Advocate Andy Mothibi announced that investigators have uncovered three major criminal syndicates that together siphoned off more than R2 billion in public funds.
“This staggering sum, intended for the provision of healthcare to the most vulnerable, was instead ruthlessly siphoned off through a complex web of fraud and corruption, representing an egregious betrayal of the nation’s trust,” Mothibi said.
One of the central figures named in the probe is Vusi ‘Cat’ Matlala, who has been linked to contracts awarded under what is now called the Maumela Syndicate.
The SIU’s findings suggest that Matlala benefited from irregular tenders worth millions of rand through companies tied to his name.
How the scheme worked
The SIU explained that hospital officials and businesspeople worked together to rig the procurement process.
Instead of using an open tender where suppliers compete fairly, insiders set up a “three-quote system”. This meant fake or friendly companies submitted inflated quotes to make sure their chosen service providers always won contracts.
By keeping each transaction just under R500,000, they bypassed stricter checks that would have caught the fraud. In reality, these contracts added up to billions, with many invoices issued for goods that were either overpriced or never delivered.
Mothibi confirmed that officials from the Gauteng Department of Health and Tembisa Hospital pocketed over R122 million in corrupt payments. Luxury houses, cars, and even a R75 million Bantry Bay property were traced to those involved.
The role of syndicates
The SIU broke down the looting into three major syndicates:
- The Maumela Syndicate: Linked to businessman Hangwani Morgan Maumela and including Vusi ‘Cat’ Matlala. Investigators have traced over R816 million worth of irregular contracts, with luxury properties and cars linked to the network.
- The Mazibuko Syndicate: Headed by Rudolph Mazibuko, involving over R283 million in irregular tenders.
- Syndicate X: Still under investigation, tied to almost R600 million worth of questionable contracts and elaborate money-laundering methods.
Smaller groups of suppliers, labelled Syndicates A through F, were also exposed. These groups used shared bank accounts and family connections to make it appear as though there was competition, while in fact they were working together.
The SIU has already prepared 116 disciplinary cases against hospital and provincial health officials, with many cases also referred to the National Prosecuting Authority (NPA).
Civil action is planned to freeze and recover assets, which will then be handed back to the state.
The corruption was first exposed by the late Babita Deokaran, a whistleblower who was assassinated in 2021 after flagging suspicious tenders at Tembisa Hospital. Her concerns triggered the investigations that led to today’s findings.
The SIU says the investigation will continue until at least November 2027, as the corruption networks are highly complex and involve hundreds of suppliers.
Mothibi made it clear that whistleblowers and investigators will be protected.
“We will relentlessly follow the money and pursue justice,” he added.
The Tembisa Hospital scandal has shocked the public, as billions meant for patient care were looted while the hospital itself struggled with overcrowding, medicine shortages, and failing infrastructure.