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27 September 2026 | 11:35

TEMBISA, GAUTENG — The Special Investigating Unit says it has secured approximately R42.4 million worth of assets linked to alleged corruption at Tembisa Hospital, as its investigation into procurement syndicates operating at the facility continues.

The preserved assets include cash, properties, pension benefits and investments allegedly connected to unlawful payments made to hospital officials.

At the centre of one of the investigations is businessman Stefan Joel Govindraju, whom the SIU alleges was linked to a procurement syndicate that channelled approximately R600 million from Tembisa Hospital through contracts awarded to companies connected to him.

The SIU says it identified approximately R100 million in payments from companies linked to Govindraju’s alleged syndicate to current and former hospital officials involved in supply-chain management. Investigators suspect these payments were kickbacks.

The allegations have not been finally determined by a court.

The Govindraju syndicate

According to the SIU, Govindraju was linked to 75 companies that traded with Tembisa Hospital.

Between 2020 and 2023, those entities were awarded 1,237 contracts through what was presented as a three-quotation procurement process.

The SIU alleges that the procurement process failed to comply with applicable procurement requirements.

The investigation has identified approximately R600 million in payments to the Govindraju-linked network. The SIU says some of the money was allegedly channelled back to officials involved in the procurement process.

The alleged network did not rely on a single person, according to investigators.

Officials allegedly involved in different stages of procurement included people responsible for identifying needs, sourcing suppliers, adjudicating bids, approving appointments, confirming compliance, certifying delivery and facilitating payments.

Zacharia Tshisele and the R13.5 million repayment

One of the officials identified by the SIU is former Tembisa Hospital employee Zacharia Tshisele.

The SIU alleges that Tshisele was able to initiate supply-chain processes as an end-user and facilitate payments by confirming that goods had been received.

The investigation found that Tshisele received unlawful gratification from service providers between January 2020 and September 2023, according to the SIU.

In November 2025, Tshisele paid R13,530,904.27 to the SIU.

The payment represented what the SIU described as a portion of his alleged ill-gotten gains, while its civil investigation into recovering the remaining proceeds continues.

The SIU had previously referred the matter to the NPA, the Directorate for Priority Crime Investigation and the Asset Forfeiture Unit for possible criminal prosecution and asset recovery.

The procurement threshold allegation

Investigators have also examined transactions involving Tshisele that were allegedly structured below the R500,000 competitive-bidding threshold.

The SIU alleges that transactions worth approximately R15.9 million were processed in this manner.

The allegation is significant because deliberately structuring procurement transactions below a prescribed threshold can undermine competitive procurement requirements.

The precise circumstances of each transaction will ultimately have to be established through the relevant investigative and legal processes.

The Midstream Estate property

Another major asset preserved in the investigation is a property in Midstream Estate valued at approximately R6.4 million.

The property is linked to former Tembisa Hospital supply-chain clerk Duduzile Nkosazana Nobungwana.

The SIU alleges that funds used to acquire the property came from payments linked to suppliers within the Govindraju network.

Investigators say some of the funds were channelled through Mabitwa Trading, with the property ultimately registered in the name of Amatibe Holding, a company owned and directed by Nobungwana’s son.

The Special Tribunal granted a preservation order preventing the property from being sold or otherwise disposed of while the SIU pursues its civil recovery action.

R1.8 million in pension benefits frozen

The SIU also obtained an order preserving approximately R1.8 million in Nobungwana’s pension benefits.

The benefits are held by the Government Employees Pension Fund and administered by the Government Pensions Administration Agency.

The preservation order prevents the pension benefits from being paid out while the SIU’s civil recovery proceedings continue.

Mining investments and the movement of money

The SIU’s investigation has also traced alleged proceeds into other investments.

Approximately R17.5 million invested in Manngwe Mining and Solmag Mining is reportedly subject to repayment arrangements.

Investigators are examining how money allegedly generated through procurement activities at Tembisa Hospital was moved through companies and ultimately used to finance assets and business ventures.

The investigation has also examined alleged links between procurement proceeds and investments outside the hospital’s immediate supply-chain environment.

Three alleged syndicates

The Tembisa Hospital investigation is broader than Govindraju.

The SIU has identified three major alleged procurement syndicates operating at the hospital.

According to the SIU, the Govindraju syndicate alone accounted for approximately R600 million in payments from the hospital.

The broader investigation has identified procurement networks involving hundreds of millions of rand and multiple officials and service providers.

In an earlier asset-preservation operation, the SIU obtained an order covering approximately R900 million in assets allegedly linked to one of the syndicates and preserved about R133.5 million during the first day of operations.

The R2-billion Tembisa Hospital investigation

The SIU has described the broader Tembisa Hospital procurement investigation as involving approximately R2 billion in alleged procurement corruption.

The investigation is examining how service providers were appointed, how contracts were processed and how officials allegedly benefited from relationships with suppliers.

The SIU has said it has referred evidence of possible criminal conduct to the National Prosecuting Authority.

Under the SIU Act, evidence of possible criminal conduct uncovered during an investigation can be referred to the NPA for consideration and further action.

Govindraju arrested

The investigation has now moved beyond asset preservation and into criminal court proceedings.

Govindraju was arrested in August 2026 and made his first appearance before the Johannesburg Specialised Commercial Crimes Court at Palm Ridge on 31 August.

He faces 70 charges, including allegations of fraud, theft, money laundering and corruption-related offences.

The charges remain allegations until tested in court.

What we know

• The SIU is investigating alleged procurement corruption at Tembisa Hospital.
• The investigation involves several alleged procurement syndicates.
• The SIU says the Govindraju-linked syndicate received approximately R600 million through contracts with the hospital.
• Investigators identified approximately R100 million in payments from companies linked to the alleged syndicate to hospital officials, which they suspect were kickbacks.
• Approximately R6.4 million in property at Midstream Estate has been preserved.
• Approximately R1.8 million in pension benefits has also been preserved.
• Former hospital official Zacharia Tshisele paid R13.53 million to the SIU.
• The SIU says evidence of possible criminal conduct has been referred to the NPA.
• Govindraju faces 70 criminal charges.
• The SIU’s civil recovery proceedings are continuing.

The big question

The central question is how a procurement system at a major public hospital allegedly allowed large volumes of contracts to flow through networks of connected companies while officials involved in the process allegedly received financial benefits.

The SIU’s investigation is attempting to trace the movement of the money — from hospital contracts, through companies and individuals, into properties, investments and other assets.

Preservation orders do not themselves constitute final forfeiture. They are intended to prevent assets from being sold, transferred or otherwise dissipated while the underlying civil recovery proceedings are determined.

What happens next?

The SIU’s civil proceedings to recover money allegedly lost by the State will continue before the appropriate courts and the Special Tribunal.

The criminal cases referred to the NPA will proceed separately through the criminal justice system.

The outcome of those proceedings will determine whether the allegations against the implicated individuals are ultimately proven.

The SIU has also indicated that its investigation remains ongoing and that additional officials or entities could be identified as investigators follow the money and examine procurement records.

Crime Connect will continue tracking the Tembisa Hospital investigation, the criminal proceedings against Govindraju and the SIU’s asset-recovery actions.

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Key figures

R600 million — Approximate value of contracts/payments linked by the SIU to the Govindraju syndicate.

R100 million — Payments from companies linked to the alleged syndicate to officials that the SIU suspects were kickbacks.

R42.4 million — Asset value cited in the latest preservation account supplied for this report.

R13.53 million — Amount paid to the SIU by Zacharia Tshisele.

R6.4 million — Value of the Midstream Estate property preserved.

R1.8 million — Pension benefits preserved.

R17.5 million — Investments in Manngwe Mining and Solmag Mining subject to repayment arrangements.

70 charges — Charges facing Stefan Joel Govindraju.

Featured image caption

The Special Investigating Unit is pursuing civil recovery proceedings and criminal referrals arising from alleged procurement corruption at Tembisa Hospital.

Article information

Category: Investigations / Corruption / Public Funds
Location: Tembisa, Gauteng
Institution: Tembisa Hospital / Gauteng Department of Health
Investigating body: Special Investigating Unit
Special Tribunal: Asset preservation proceedings
Key suspect: Stefan Joel Govindraju
Status: Criminal and civil proceedings ongoing

Legal and accuracy note

The allegations concerning corruption, kickbacks, procurement irregularities and unlawful enrichment remain allegations unless and until established through the relevant legal proceedings. Preservation orders are intended to safeguard assets pending the outcome of civil recovery proceedings and do not, by themselves, constitute a criminal conviction. Govindraju’s 70 charges are also allegations that remain to be tested in court.

Sources: Special Investigating Unit statements and investigation updates.