The Special Investigating Unit (SIU) has obtained preservation orders to freeze assets linked to an alleged corruption and identity theft scheme tied to procurement fraud at Tembisa Hospital.

The investigation centres on Oscar Nobungwana, 33, who is accused of using a stolen identity document to register a shell company, Mabitwa Trading, in January 2021.

According to investigators, this company was later used to receive millions of rand in payments connected to a broader syndicate allegedly responsible for looting nearly R2 billion from hospital procurement contracts.

The SIU alleges that businessman Stefan Joel Govindraju, linked to at least 73 companies doing business with the hospital, channelled large sums into Mabitwa Trading.Payments of around R3.9 million and a further R3.6 million were made, forming part of nearly R8 million allegedly received through the scheme.Nobungwana is also accused of using these funds to purchase a luxury mansion worth approximately R6.3 million in Midstream Estate, Centurion, registered in September 2021.

The investigation further implicates Nobungwana’s mother, Nkosazana (also referred to in reports as Duduzile), a former hospital supply chain official, who allegedly helped facilitate irregular contracts worth over R10.8 million and is linked to wider procurement irregularities.She is believed to have played a role within a network referred to by investigators as “Syndicate X”.The SIU has frozen her pension benefits valued at about R1.8 million pending the outcome of legal processes.

Authorities also allege that more than 1,200 contracts worth over R596 million were awarded irregularly through non-compliant procurement processes, with significant portions of funds suspected to have been diverted as kickbacks to officials.

Investigators confirmed that the identity theft victim was unaware of the fraudulent company and property registered in her name, and has been vindicated by the SIU as a victim of the scheme.The matter has now been referred to the National Prosecuting Authority for further criminal investigation and possible prosecution.