Stefan Joel Govindraju
Image: Special Investigating Unit/X
EIGHT months after the Special Investigating Unit (SIU) confirmed corruption at Tembisa Hospital, new revelations about Syndicate X and its alleged mastermind, Stefan Joel Govindraju, have emerged, promising hope for justice in the murder of whistle-blower Babita Deokaran.
In September, the SIU disclosed the existence of multiple syndicates involved in the misappropriation of over R2 billion through elaborate procurement fraud schemes.
The funds were meant for healthcare services at the hospital in Gauteng.
The SIU's investigation was launched following a secondment agreement initiated by the Office of the Premier in Gauteng (OOP) on September 14, 2022.
It was to conduct a forensic investigation based on a report by Deokaran, on August 4, 2021.
The SIU is directed by Proclamation No 136 of 2023, signed by President Cyril Ramaphosa, to investigate allegations of corruption and maladministration in the affairs of the Gauteng Department of Health and the Tembisa Hospital.
At the time, the SIU identified three major syndicates operating within the framework of the hospital's financial dealings.
Firstly, the Maumela Syndicate, linked to Hangwani Morgan Maumela, involved 1,728 bundles worth R816,560,710, with 924 analyses revealing significant irregularities.
Maumela’s traced assets amounted to approximately R520 million, including luxury vehicles and properties.
Secondly, the Mazibuko Syndicate, associated with Rudolph Mazibuko, uncovered 651 bundles valued at R283,504,291, with identified assets worth R42,646,502 spread across properties in both the Western Cape and Gauteng.
Lastly, the SIU was assessing a further 1,237 procurement bundles related to a third entity, dubbed Syndicate X.
Selby Makgotho, the SUI’s spokesperson, in a statement last week, said: “The SIU can now reveal that the face behind the syndicate is Stefan Joel Govindraju.”
He said evidence from the SIU investigation showed that Govindraju was the director of at least 75 entities, 73 of which were irregularly appointed at Tembisa Hospital.
“During the period under review, these entities were awarded 1,237 contracts through a purported three-quote procurement process that did not comply with applicable procurement prescripts.”
Makgotho said the SIU’s probe revealed that the Govindraju-linked suppliers allegedly received total payments of approximately R596,424,356,10 arising from these contracts, which were considered highly irregular and non-compliant.
“The SIU further identified approximately R100 million in payments from the alleged Govindraju syndicate to former and current Tembisa Hospital officials involved in supply chain management, suspected of constituting undue gratification.”
Makgotho said funds used to acquire the Midstream Property were allegedly traced to payments made by companies within this network, including entities linked to Govindraju’s syndicate.
“Payments from these suppliers flowed to Mabitwa Trading and were used to finance the purchase of the property, which was ultimately registered in the name of Amatibe Holding.”
Makgotho added that the SIU obtained a preservation order and an interim interdict over an immovable property valued at R6,4 million and R1,8 million in pension benefits belonging to Duduzile Nkosazana Nobungwana, a former supply chain clerk at Tembisa Hospital.
She resigned in the middle of a disciplinary hearing.
“The order was granted by the Special Tribunal to prevent the sale of property and to safeguard assets suspected of being the proceeds of unlawful activities linked to a major procurement syndicate at Tembisa Hospital, known as Syndicate X.
“The SIU’s investigation found that the luxury property in Midstream Estate was purchased with funds derived from secret profits, kickbacks, and bribes paid by suppliers doing business with Tembisa Hospital,” he said.
Makgotho said the SIU’s investigation revealed that Nobungwana, who held several key positions at Tembisa Hospital, including chief buyer and member of the Vetting Committee in the supply chain management unit, played a central role in the irregular adjudication and appointment of various suppliers.
“She is alleged to have received undisclosed, undue gratification from certain suppliers, thereby violating her duties without disclosing it to her employer. A portion of these illicit payments was allegedly channelled through a front company, Mabitwa Trading, to fund the purchase of Midstream Property. This property was purchased through Mabitwa Trading and registered in the name of Amatibe Holding, a company owned and directed by her son, Oscar Nobungwana.”
Makgotho said in addition to the property, the SIU preserved Nobungwana’s pension benefits, valued at approximately R1,8 million.
“The SIU order restricts pension fund administrators from paying Nobungwana’s pension benefits and prevents the dissipation of these pension funds pending the finalisation of the SIU’s civil action to recover losses suffered by the state.”