Court orders permanent forfeiture of R325m in Tembisa Hospital corruption case

The Johannesburg High Court has ordered the permanent forfeiture of R325 million in assets linked to the Tembisa Hospital corruption scandal. The order was secured by the National Prosecuting Authority’s Asset Forfeiture Unit and targets assets linked to alleged members of businessman Hangwani Morgan Maumela’s syndicate.

What was seized

The court ordered the seizure of luxury homes in Bantry Bay, Sandton, Hartbeespoort, Ballito and Three Anchor Bay. It also ordered the forfeiture of four Lamborghinis, a Bentley Continental GT, an Isuzu D-Max, a Regency boat and a multipurpose trailer.

Officials respond

Health Minister Dr Aaron Motsoaledi welcomed the decision and urged authorities to recover the remaining proceeds and to press ahead with criminal cases. He said,

“We implore the Asset Forfeiture Unit to expedite the recovery process.”

He also called on law enforcement agencies to arrest and prosecute those responsible, saying,

“No one should be allowed to help themselves to resources which were meant for the sick. Only a sick society will allow that to happen without any far-reaching and concrete repercussions.”

Justice and Constitutional Development Minister Mmamoloko Kubayi said the judgment demonstrates government determination to strip criminals of illegal profits.

Background and next steps

The Special Investigating Unit found that the Maumela syndicate and two others allegedly siphoned about R2 billion that had been meant to improve healthcare services at Tembisa Hospital. Whistleblower Babita Deokaran helped expose the alleged procurement fraud and raised concerns about suspicious payments before gunmen killed her in August 2021.

Recovered money will be paid into the Criminal Asset Recovery Account and ringfenced for the Gauteng Department of Health. Law enforcement agencies continue their criminal investigation into those implicated in the scandal.