The Special Investigating Unit (SIU) has welcomed the arrest of Stefan Joel Govindraju, who made his first appearance before the Johannesburg Specialised Commercial Crimes Court in Palm Ridge on Monday.
Govindraju faces multiple charges arising from allegations of the procurement of medical supplies and equipment at Tembisa Hospital. The charges include 70 counts of fraud, theft, money laundering and corruption-related offences.
In April 2025, the SIU referred evidence of criminal conduct to the National Prosecuting Authority (NPA), linking Govindraju and Tembisa Hospital officials, who were part of his syndicate in fraud and corruption at the hospital.
“The arrest follows the SIU’s ongoing investigation into procurement irregularities and alleged corruption at Tembisa Hospital in Gauteng, including the activities of three main alleged procurement syndicates, one of which is the Govindraju syndicate, formerly known as syndicate X,” the SIU said in a statement.
To date, the SIU has found that the Govindraju syndicate siphoned approximately R600 million from the hospital.
“The SIU’s investigation has identified 75 companies linked to Govindraju, which traded with Tembisa Hospital. During 2020 and 2023, these entities were awarded 1 237 contracts through a purported three-quotation procurement process, which allegedly failed to comply with applicable procurement prescripts.
“Among the companies linked to Govindraju that traded with Tembisa Hospital are Diolinx (Pty) Ltd and Fuligenix (Pty) Ltd.
“The SIU has so far identified a number of assets linked to Govindraju, with a combined value of approximately R150 million,” the SIU said.
The SIU further identified approximately R100 million in payments from companies linked to the alleged Govindraju syndicate to former and current Tembisa Hospital officials involved in supply chain management. These payments are suspected to be kickbacks.
The officials allegedly involved in the scheme were responsible for various stages of the procurement process, including identifying needs, sourcing service providers linked to Govindraju, adjudicating and recommending their appointment, approving appointments, certifying compliance with procurement regulations, confirming the delivery of goods and services, issuing proof of payment, and facilitating payments to the service providers.
Govindraju has also been linked to Duduzile Nkosazana Nobungwana, a former supply chain clerk at Tembisa Hospital and 11 other officials.
The SIU’s investigation traced funds allegedly used to acquire Nobungwana’s property in Midstream. These funds are linked to payments made by companies within the network, including entities linked to Govindraju’s syndicate.
The SIU subsequently obtained a preservation order from the Special Tribunal in respect of the Midstream property, valued at approximately R6.4 million.
In addition, Nobungwana’s pension benefits, valued at approximately R1.8 million and held by the Government Employees Pension Fund (GEPF) and administered by the Government Pensions Administration Agency (GPAA), have been preserved.
Govindraju has also been linked to Zacharia Tshisele, an Operational Nursing Manager at Tembisa Hospital, who was able to initiate Supply Chain Management (SCM) processes as an “end-user” and facilitate payments by confirming the receipt of goods.
Tshisele has since paid R13 530 904.27 to the SIU, representing a portion of his ill-gotten gains. The SIU’s civil investigation to recover all proceeds of corruption from Tshisele remains ongoing.
The SIU says it remains determined to root out corruption across every government department, municipality and public entity where it is mandated to investigate.
The SIU is authorised by Proclamation 136 of 2023 to investigate allegations of corruption and maladministration in the affairs of the Gauteng Department of Health and Tembisa Hospital. The investigation is ongoing.
In terms of the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU refers evidence of possible criminal conduct uncovered during its investigations to the National Prosecuting Authority (NPA) for consideration and further action.
The SIU is also empowered to initiate civil proceedings in the High Court or Special Tribunal to recover financial losses suffered by the State. – SAnews.gov.za
