SIU secures preservation orders over about R42.4m tied to Tembisa Hospital bribes

According to IOL, the Special Investigating Unit (SIU) has secured preservation orders over approximately R42.4 million in assets alleged to be linked to syndicates that paid bribes to officials at Tembisa Hospital to secure procurement deals.

What the preservation orders cover

The SIU said the preserved assets include cash, properties, pensions and investments that the unit links to about R100 million in bribes paid to hospital officials to secure procurement contracts worth approximately R600 million.

The Special Tribunal granted the preservation order last month and, according to IOL, it prevents the disposal of assets belonging to Zacharia Tshisele, his civil wife Phumudzo Tshisele, his customary wife Fulufhelo Lineth Tshililo, and entities and associates connected to them.

Who else is restrained by the order

According to IOL, the order also restrains payments and dealings by companies and individuals implicated in the corruption network, including Joseph Fhumulani Muthaphuli and Ernest Monnakgotla, who served as Area Manager at Tembisa Hospital and was a member of the hospital’s Quotation Adjudication Committee.

“The order also restrains payments and dealings by companies and individuals implicated in the corruption network, including Joseph Fhumulani Muthaphuli and Ernest Monnakgotla, former Area Manager at Tembisa Hospital and a member of the hospital’s Quotation Adjudication Committee,”

SIU spokesperson Selby Makgotho, as reported by IOL

Frozen pensions and properties

According to IOL, the Tribunal interdicted the Government Employees Pension Fund and the Government Pensions Administration Agency from paying out Tshisele’s pension, which is valued at R1,089,808.32. The order also froze two properties: a Birchleigh North property in Kempton Park registered in the names of Tshisele and his wife Phumudzo (valued at approximately R1.3 million), and a Delmore Park property in Boksburg registered in the name of Tshililo (valued at approximately R820,000).

Alleged syndicates and how the scheme worked

According to IOL, the SIU identified two of three major syndicates operating at Tembisa Hospital. The first, the Govindraju syndicate run by Stefan Joel Govindraju, allegedly used 75 companies to trade with the hospital and received approximately R600 million. The second, the Mazibuko syndicate operated by Rudolf Mduduzi Mazibuko, allegedly used 17 companies and received approximately R283 million.

The SIU said these syndicates relied on corrupt cooperation from hospital officials, including Tshisele and Monnakgotla, to facilitate unlawful procurement. According to IOL, Tshiseleappointed Operational Manager of the hospital’s theatre in 2017allegedly abused his position to start supply chain processes and confirm receipt of goods, and was directly involved in transactions worth approximately R15.9 million that were kept below the R500,000 threshold to avoid competitive bidding.

Money flows and investments named in the probe

According to IOL, funds from the Govindraju syndicate, including payments from Diolinx and Fuligenix, were channelled through Create 10, which was co-directed by Tshisele, Monnakgotla and Muthaphuli. The SIU said these funds financed properties, mining ventures and a film project.

The SIU alleged that Tshisele and Monnakgotla invested R17.5 million in Manngwe Mining and Solmag Mining, and that R15.5 million was advanced through Time Bomb towards the production of a movie titled ‘The Bad Bishop’. According to IOL, these investments and advances were part of the funds channelled through Create 10.

Repayments, arrests and referrals

According to IOL, Tshisele signed an Acknowledgement of Debt with the SIU in 2025 and has since repaid R13,530,894.27 in four instalments. Manngwe Mining also agreed to repay R17.5 million over 36 months; the SIU said this agreement is part of the preservation orders and payment agreements.

According to IOL, Govindraju was arrested in August in connection with the Tembisa Hospital case and was granted R200,000 bail. The Hawks also arrested a man at OR Tambo International Airport on August 31 on charges related to fraud, corruption and money laundering at Tembisa Hospital.

The SIU has referred evidence of criminal conduct uncovered during the investigation to the National Prosecuting Authority (NPA). According to IOL, Govindraju faces multiple charges arising from allegations of procuring medical supplies and equipment at Tembisa Hospital, including 70 counts of fraud, theft, money laundering and corruption-related offences.

Overall recovery value

According to IOL, preservation orders and payment agreements against Tshisele and former Tembisa Hospital official Duduzile Nobungwana bring the total value of preserved cash and assets to approximately R42.4 millionamounts the SIU says syndicate members paid as bribes.

All claims in this article are attributed to IOL.