Healthcare Fraud at Tembisa Hospital: R2 Billion Procurement Fraud Exposed

In this piece for African Antitrust, author Courtney Kaplan (Primerio) discusses a major corruption investigation tied to procurement fraud at Tembisa Hospital in South Africa. The case gained national attention following the 2021 assassination of whistleblower Babita Deokaran, who had exposed approximately R850 million in suspicious payments within the Gauteng Department of Health. In 2023, a government proclamation empowered the Special Investigating Unit (SIU) to probe corruption, irregular procurement practices, and wasteful expenditure at the hospital and within the department.

An interim SIU report released in September 2025 revealed that roughly R2.043 billion had been misappropriated through nine organized syndicates that manipulated the hospital’s procurement systems. The investigation implicated 15 government officials and triggered more than 100 disciplinary referrals. Authorities were also granted powers to pursue civil recovery proceedings, initiate criminal referrals, and work with other agencies to address tax violations and supplier blacklisting.

Criminal charges were filed in October 2025 against former Gauteng Department of Health CFO Lerato Madyo. Prosecutors allege that Madyo allowed R104 million in questionable payments to proceed despite earlier warnings and failed to properly report corruption. The charges include violations of South Africa’s anti-corruption and public finance laws, as well as conspiracy, fraud, and theft.

The investigation has also led to asset preservation orders covering roughly R900 million and the recovery of significant funds linked to corrupt conduct. Several officials have been arrested or suspended, including individuals accused of accepting bribes and attempting to interfere with the investigation. While the probe remains ongoing, Kaplan notes that the case highlights systemic weaknesses in procurement oversight and suggests that similar corruption networks may extend beyond Tembisa Hospital into broader parts of South Africa’s public healthcare system…

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