Health Department Criticised for Delays in Acting on R2 Billion Tembisa Hospital Corruption Scandal

Critics accuse the Health Department of failing to act decisively as the Tembisa Hospital corruption scandal deepens.
image: Internet
by Kelebogile Matlou
The South African Department of Health is currently under investigation after revelations emerged that more than R2 billion was stolen through illegal procurement at Tembisa Hospital in Gauteng.
The scam, which was disclosed by whistleblowers and later substantiated by SIU investigations, has prompted questions about why the department has not taken decisive action against those responsible, as well as how criminal networks were able to operate within the health-care system.
The controversy grew when Health Minister Aaron Motsoaledi revealed that the department had requested that the Special Investigating Unit begin the process of blacklisting the 207 service providers involved in the misconduct. These companies are linked to at least 4,501 suspicious purchase orders, many of which have been flagged as unusual.
Motsoaledi later stated, in response to written questions from ActionSA MP Alan Beesley, that the National Treasury has the ultimate authority to ban the companies. Beesley disagreed, claiming that blacklisting necessitates concerted action from financial officers, including Tembisa Hospital’s CEO, the Gauteng Health Department, and even the Presidency.
Sandile Swana, a governance specialist, criticized the scenario, claiming that the department’s reliance on external entities highlights a larger issue. He claimed that the lack of a strong blacklisting culture in South Africa allowed corruption networks to persist. He cautioned that transferring culpability could be an attempt to escape political implications associated with criminal syndicates.
Swana emphasized that the absence of accountability in public institutions remains a major issue. While accounting officers are required by law to notify intentions to blacklist corporations, they must also assemble persuasive evidence, which has hindered the process.
Foster Mohale, a National Health spokeswoman, insisted that only the Treasury has the authority to legally blacklist service providers. He also stated that investigations must be comprehensive before any conclusions are taken. He revealed that the Gauteng Health Department has previously given a list of firms to the Provincial Treasury based on information obtained by whistleblower Babita Deokaran, who was slain in August 2021 for exposing wrongdoing at Tembisa Hospital.
Deokaran’s findings first suggested that R850 million had been misused. However, SIU investigations ultimately found that the looting exceeded R2 billion, and procurement processes were twisted to avoid inspection.
Investigators discovered that officials bypassed tender processes, altered papers, and kept purchase orders under R500,000 to avoid tougher oversight.
The Public Servants Association slammed the government’s reluctance to blacklist the implicated corporations, describing it as a significant breach of accountability. The union claimed that continuous disagreements between the Health Department and the National Treasury have slowed progress and destroyed public trust.
Political analyst Professor Andre Duvenhage criticized law enforcement agencies’ lack of early intervention, particularly given the connection to Deokaran’s death. He stated that effective transformation required strong political will and the imposition of sanctions for individuals who abuse governance mechanisms.


