The National Prosecuting Authority’s Asset Forfeiture Unit (AFU) has been granted a forfeiture order amounting to some R326 million in assets.
The assets belong to alleged members of the Maumela syndicate implicated in the Tembisa Hospital looting scandal.
Last year, a Special Investigating Unit investigation found that the syndicate – together with two others – allegedly siphoned off some R2 billion earmarked for the improvement of healthcare services at the hospital in a complex web of fraud and corruption.
Assets forfeited include high end residential property in affluent areas and luxury vehicles.
NPA Head, Advocate Andy Mothibi stated that the AFU is an “important tool to disrupt the syndicates and ensure that [criminals] do not use the same money to fight the state”.
“The pursuit of justice for the people of South Africa continues, particularly in the fight against corruption. [South Africans] become victims of crime and corruption when they face inadequate healthcare, under-resourced health facilities, medicine shortages, and a lack of essential equipment.
“This…is a travesty of justice,” Mothibi said.
All proceeds recovered from the forfeiture will be paid into the Criminal Asset Recovery Account and ringfenced for use by the Gauteng Department of Health (GDoH).
A web of corruption
The investigation into the Tembisa Hospital was preceded by a report by slain former Chief Director of Financial Accounting at the GDoH, Babita Deokaran.
Deokaran was assassinated in 2021 following the report which outlined irregularities at the hospital’s supply chain management unit.
“The applications by the NPA’s Asset Forfeiture Unit were premised on forensic investigations by a firm appointed to assist in the investigation concerning allegations of procurement fraud and corruption that took place at the Tembisa Hospital during the period from January 2019 to August 2022.
“The Specialised Audit Services Unit [SAS] of the National Treasury [NT] conducted a review of Tembisa Hospital’s Basic Accounting System payment data to determine all payments made to the companies that were identified by Deokaran as having benefitted from the unlawful activities.
“It also conducted a review of the Tembisa Hospital’s Central Supplier Database and the Companies and Intellectual Property Commission records of the implicated companies to verify the registration and directorships of the companies, to identify any additional related companies involved in the unlawful activities and to review payments made to those companies,” an NPA statement read.
The SAS review confirmed Deokoran’s report on the alleged corruption and irregularities.
“The SAS established that 14 entities controlled by the Maumela syndicate apparently irregularly and unlawfully benefited from contracts from the Tembisa Hospital with a cumulative value more than R400 million.
“Forensic investigations revealed a multitude of irregularities in the procurement processes with a manipulation of the processes in the award of contracts for the supply of goods and/or services to Tembisa Hospital which favoured entities associated with the syndicate,” the statement continued.
In some cases, companies which were said to have submitted quotes during bidding denied this while in other instances, cover quotes were submitted by colluding companies to ensure that syndicate entities were favoured.
“The analysis conducted of the flow of funds indicated that most of the funds received by the syndicate entities were used to purchase assets, to pay bribes to officials and covering bidders and by members of the syndicates for personal use/ to fund their extravagant lifestyles.
“A very small percentage of the total amount received could possibly be ascribed to the purchase of supplies for delivery in terms of the contracts,” the statement read. – SAnews.gov.za
