EFF in Gauteng statement following the SIU final report on Tembisa Hospital regarding serious allegations of syndicate activity, fraud, corruption, forgery, irregular appointments of service providers, and irregular expenditure within the supply chain management line

9 January 2023

The Economic Freedom Fighters in Gauteng welcomes the final forensic report conducted by the Special Investigative Unit in relation to the damning allegation of syndicate activity, fraud, corruption, forgery, the irregular appointment of service providers, and irregular expenditure of public funds allocated to Tembisa Hospital through the Department of Health in Gauteng.

The investigation was triggered by a whistle-blower and former Chief Director; Financial Accounting Ms.

Babita Deokaran, who was later assassinated, when for raising a flag on the criminal activities in Tembisa Hospital dating back to 2019.

While the investigation only focused on transactions made in the period from 01 January 2020 to Il October 2022, maladministration, fraud, and corruption involving over a billion rands were uncovered.

The SIU report highlights that the financial criminal syndicate activity stems from the Supply Chain Management officials, Quotation Adjudication Committee members, and the CEO Dr. A Mthunzi who is the final signatory. The crimes involve awarding millions of Rands to multiple service-providing companies belonging to a few individuals.

According to the report, companies belonging to; Stefan Govindraju and his family and friends received payments amounting to about R436 925 532, Hangwani Morgan Maumela and Family members received payments of about R336 326 566,90, and Rudolf Mazibuko and relatives received about R249 581 855,70.

These companies are reported to have received these payments despite utter flaunting of procurement policy and failure to adhere to Request for Quotation (RFQ) requirements such as ID Copies, BBBEE Certificates, Expired Tax Information, false director information, forged signatures, and contradictory dates. Tembisa Hospital services over 1.5 million people around the province and is notorious for overcrowding of the wards, poor healthcare services, shortage of medical personnel and drugs, and cases of collapse of the infrastructure.

There is also the infamous general dilapidation of public healthcare in the country and Gauteng in particular.

What further aggravates the situation is that these heinous syndicate crimes took place in the period when the country underwent a deadly pandemic, the Covid-19 virus when all the resources in public health were desperately needed to save lives.

The EFF Founding Manifesto correctly calls for the building of state capacity, which will lead to the abolishment of tenders. This is a call for the building of internal state capacity to avoid the state's dependence on external service providers.

The EFF also calls for the building of a state-owned pharmaceutical company to eradicate the outsourcing of basic hospital services which on a normal day would save the state a lot of resources from being looted, and swindled by greedy private pharmaceutical companies.

The Tembisa hospital saga and other Gauteng Hospitals being bled dry in the same fashion should serve as an eye-opener that public services should not rely on external suppliers to ensure the effective operation of such vital institutions to society.

The EFF Gauteng calls for swift moving of the wheels of justice in this matter. We note that even life was lost in efforts to cover up for individuals implicated. We call for the immediate arrest and criminal prosecution of the CEO Dr. Ashley Mthunzi, Dr. LM Mogaladi, Stefan Govindraju, Hangwani Morgan Maumela, Rudolf Mazibuko, and members of the QAC, and everyone who is implicated.

We demand the recovery of all the looted public funds from the mentioned beneficiaries, this money should be diverted to more useful expenditures within the hospital infrastructure and other Gauteng Health institutions. Some of the recovered funds must as well be channelled to the rehabilitation and reopening of Kempton Park Hospital, as this will also relieve Tembisa Hospital from overcrowding and give more support to the already struggling public healthcare.

Moreover, the EFF in Gauteng calls for further investigation of the implicated individuals and their criminal prosecution in connection with the death of the former Gauteng Health Department Chief Director; Financial Accounting Ms. Babita Deokaran who was murdered for exposing corruption in the hospital.

We also call for an investigation of similar criminal activities in hospitals across the province, as we believe that some of the implicated private companies do the same in other hospitals.

The EFF Gauteng will keep close tabs on this matter as there have been reports of political and administrative interferences since this case was taken up. We also warn all those who believe they can pull strings to manipulate and defeat the ends of justice to desist from attempting that as it will be met by a firm and unsympathetic opposite reaction it deserves.

This deliberate collapse of the public health system by the ANC government must be seen as a betrayal to the black majority, as it not only leads to the loss of lives who are solely reliant on the state for help, but it also gives more room to white-owned private healthcare facilities like Mediclinic which has seen parasites such as Johan Rupert benefit billions of Rands at the expense of our people.

Issued by Nkululeko Dunga, EFF Gauteng, 9 January 2023