Vusimuzi 'Cat' Matlala has been named as a beneficiary of corruption at the Thembisa hospital. Here's how much he is said to have banked.
Three syndicates responsible for siphoning off almost R1.7 billion from the Gauteng government have been identified by the Special Investigation Unit (SIU).
The unit on Monday revealed the widespread corruption involving officials and service providers tied to the Thembisa hospital and the provincial Department of Health (DoH).
Head of the SIU Advocate Lekgoa Mothibi detailed the progress of the investigations in the presence of Gauteng Premier Panyaza Lesufi and Minister of Health Aaron Motsoaledi.
Mothibi stated that Motsoaledi and Lesufi both referred matters of corruption to the SIU, which led to the commencement of the investigations.
Over 4 500 corrupt orders
The SIU’s investigations revealed that three syndicates have been using the Thembisa hospital and the Gauteng DoH as a source for personal enrichment.
Investigators have combed through over 2 000 procurement deals involving over 4 500 purchase orders to the combined value of R1.69 billion
“Analysis of about 2 207 procurement bundles has revealed serious maladministration and procurement fraud,” said Mothibi.
“Key officials from the DoH in Gauteng and the Thembisa hospital are accused of benefitting from corrupt payments that facilitated the irregular payments.
“They are not just accused. Evidence has been found that indicates that these officials have been paid corruptly by the service providers,” explained the SIU head.
Links to ‘Cat’ Matlala
Mothibi revealed the names of two of the syndicate leaders, but withheld the third as those involved were still subject to legal proceedings.
Hangwani Maumela was identified as the primary beneficiary of a syndicate which was tied to 1 728 procurement bundles worth R816 million.
This syndicate involved 41 suppliers, three of them linked to Vusimuzi ‘Cat’ Matlala, who Mothibi said benefited at least R13 million.
Maumela has already been the subject of an SIU order, which led to the confiscation of R520 million in assets.
The second syndicate is linked to Rudolph Mazibuko, who is tied to at least 651 procurement bundles valued at R283 million.
‘Syndicate x’
Mothibi highlighted a third syndicate which he described as “syndicate X” which was linked to R596 million in irregular contracts and payments.
“Work is being done and we are hoping that we will be able to name this syndicate very soon once it has gone through the court process,” said Mothibi.
The SIU mentioned another five smaller players that pushed the irregular gains to over R2 billion, and confirmed that all involved were officials at the Gauteng DoH and Thembisa hospital.
“The SIU has identified at least 15 current and former officials involved in activities such as corruption, money laundering, collusion, bid-rigging with improperly appointed service providers at Thembisa hospital,” said Mothibi.
“These individuals abused their positions throughout the procurement process to benefit the service providers and enrich themselves.”
Those implicated are reportedly entry-level clerks to lower-level management, and at least 116 disciplinary procedures have been inititated.
“The phenomenon of lower-level officials causing more damage has been observed in other investigations,” said Mothibi.
Corruption tactics
Explaining how the syndicates operated, Mothibi said service providers were appointed using fraudulent documents.
Additionally, officials used a three-quote system that exploited a regulation relating to R500 000 procurement threshold.
Other tactics involved purchase orders for non-existent services and materials, the splitting of orders and the submission of multiple invoices of similar amounts.
Bidders predetermined to be unsuccessful were also used to submit competing quotes that would create the illusion of a competitive bidding process.
“[The unsuccessful bidders] would have been requested to submit quotations through these syndicates, but they would know already that they were not going to get it. And when they don’t get it, they get paid,” said Mothibi.
The investigation proclamation gives a completion deadline for November 2027, but Mothibi stressed that he wished to see investigations completed as some stage during 2026.
Acknowledging the role of the slain whistleblower Babita Deokaran, Mothibi said reviewed legislation was in the pipeline to protect whistleblowers.
‘Nothing to hide’
Motsoaledi said that while criminal influences in the department were troubling, it had to take responsibility for the irregular actions.
“Even with their thuggery, they could not have achieved what they did without the cooperation and participation of government officials.
“While we are chasing the syndicates, we must also look inside about our own officials and how we are going to make sure in future that we don’t have that,” said the minister.
Lesufi called the report “damning and disturbing” and said it justified a call to investigate other hospitals in the province.
“We are ready to immediately implement these findings as contained in this report. There are indications that the same modus operandi is taking place in other hospitals. Therefore, we need to move with speed,” said the premier.
Lesufi stated that corruption needed to be eliminated at all levels of government departments and announced that lifestyle audits would be conducted for all supply chain staff.
“We commit to cooperate with this process as we have nothing to hide, but to be as transparent as possible on all these matters,” he concluded.
