Hawks swoop on Tembisa Hospital at same time investigation confirms the slain Babita Deokaran was right

On Tuesday, Gauteng Premier Panyaza Lesufi released details of a Special Investigating Unit (SIU) report which reveals the extent of the rampant corruption and maladministration at Tembisa Hospital. The findings of the report are in line with a report compiled by the late Gauteng Department of Health whistle-blower Babita Deokaran, weeks before her murder.

Tembisa Hospital in Johannesburg. (Photo: Gallo Images / Papi Morake)

Deokaran was assassinated outside her home in Johannesburg in August 2021. A News24 investigation revealed that in the weeks leading up to her death, she had flagged R850-million of dodgy payments out of Tembisa Hospital and was afraid for her safety. Deokaran had reported the irregular spending to suspended department chief financial officer Lerato Madyo and had called for a forensic investigation.

Nothing was done at the time, but following the News24 reports, the then Gauteng Premier David Makhura’s office instituted an independent forensic investigation to probe allegations related to the assassination.

On 14 September 2022, Lesufi’s office signed a secondment agreement with the SIU to investigate the allegations of maladministration, fraud and corruption related to supply chain management (SCM) processes at Tembisa Hospital, under the Gauteng Department of Health (GDoH), and relating to 217 service providers as identified in Deokaran’s August 2021 report.

The SIU report revealed details on Tuesday which confirmed the allegations of maladministration and possible fraud and corruption related to the SCM process at the hospital under the GDoH, as based on an analysis of the limited payments received in respect of 26 of the service providers as identified by Deokaran.

‘Babita’s legacy’

“We are doing this to honour Babita’s legacy…  to fulfil our commitment that her death will not be in vain. She remains the symbol of whistle-blowing and a symbol of fighting corruption. We will leave no stone unturned in ensuring that those involved will suffer the consequences,” said Lesufi.

A poster at a vigil on 26 August 2021 in Johannesburg for whistle-blower Babita Deokaran. (Photo: Gallo Images / Fani Mahuntsi)

The SIU investigation revealed that fraudulent service providers and suppliers are conducting business with the GDoH at Tembisa Hospital, and that possible fraudulent payments were made.

“The SIU found numerous irregularities in respect of the bid documents provided to Tembisa Hospital by the successful and unsuccessful bidders, which should have led to the disqualification of the bidders. The SIU confirms the irregular appointment of service providers which caused the GDoH to suffer irregular expenditure,” the report reads.

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The SIU found that the acting CEO of the hospital at the time of the irregular procurement, Dr Ashley Mthunzi, was responsible for authorising purchase order request forms which led to the irregular appointment of 13 service providers.

“This finding is based on the 27 documents received and analysed by the SIU, according to the report,” the report read.

The provincial government placed Mthunzi, along with the then Gauteng Department of Health CFO Madyo, on precautionary suspension in August.

Recommendations

In its report, the SIU described the irregularities it had uncovered at Tembisa as “merely the tip of the iceberg” which pointed to serious maladministration at the embattled health facility related to irregular procurement processes.

Based on the outcome of the investigation, the SIU confirmed that the matters do not fall within the mandate of the existing proclamation R23 of 2020. Lesufi said, based on the findings of potential syndicate activity, corruption, fraud and the irregular appointment of service providers at the hospital, which led to irregular expenditure at the GDoH, the SIU had applied for a presidential proclamation — which has been supported by the provincial government.

“Once approved, the SIU will increase its scope to include the freezing of assets, amongst other things,” he said.

Additionally, the SIU recommended disciplinary action against the former acting CEO Mthunzi for failing in his duties as the accounting authority at Tembisa Hospital.

The SIU added that it would recommend referrals to the National Prosecuting Authority (NPA) in respect of the following service providers, for providing the GDOH with false information:

• Magnolia Trading;


• Sokhana Trading and Supplies;


• Preliboo;


• Roguepalm;


• Stotleari;


• Hynoforce; and


• Fairg Holdings.

Hawks raid Tembisa Hospital 

While Lesufi was speaking about the SIU report findings, the Gauteng Hawks swooped on Tembisa Hospital to conduct a search and seizure operation on Tuesday morning.

The raid was based on information about the irregular contracts awarded by supply chain management at the health facility to 217 service providers, said Hawks spokesperson Colonel Katlego Mogale in a statement. The Hawks team was to seize all relevant materials including documents and electronic gadgets deemed to be crucial to the investigation, said Mogale.

“The search and seizure operation emanated from an inquiry into allegations of fraud and corruption at the Tembisa Tertiary Hospital.

“It is alleged that there exist untoward practices in relation to contracts below R500,000 which have been issued purchase orders between 2016 and 2022. These are reported to have been conducted or allocated in an unlawful and illegal manner and this has resulted in the hospital being prejudiced [by] over R850-million,” said Mogale.

#sapsHAWKS #Hawks execute a search and seizure operation for alleged irregular contracts awarded by Supply Chain management at Tembisa Tertiary Hospital to 217 service providers.worth R850 MIL. #FightingCorruption MEhttps://t.co/0YcldzT69j pic.twitter.com/Mo0HAmiRXw

— SA Police Service ?? (@SAPoliceService) December 13, 2022

Mogale said that in some of the contracts, hospital employees were reported to have received “gratification”. DM