The Special Investigating Unit (SIU) has intensified its probe into large-scale corruption at Tembisa Hospital, focusing on alleged syndicate kingpin Stefan Joel Govindraju, who is believed to have benefited from more than R500 million in irregular contracts.

According to investigators, Govindraju controlled 73 companies that conducted business with the hospital between 2018 and 2020 during a period when procurement corruption was allegedly rampant.These companies were part of a broader scheme linked to what investigators call a R2 billion looting operation within the Gauteng health system.

The SIU has already secured preservation orders against assets linked to Duduzile Nkosazana Nobungwana, a former member of the hospital’s supply chain committee, including her R1.8 million pension fund and a R6.4 million property allegedly purchased using kickbacks.Nobungwana is accused of channeling over R10 million in contracts to companies linked to Govindraju.

While no assets belonging directly to Govindraju have yet been frozen, investigators confirmed that he remains a central focus of ongoing investigations.

The scandal is also linked to multiple syndicates, including Syndicate X and others associated with controversial tender networks, with total alleged losses exceeding R2 billion.

Officials reportedly benefited through bribery and fraudulent procurement processes, including bid rigging and manipulation of the three-quote system to keep contracts below R500,000 thresholds.

The SIU found that healthcare spending at the hospital rose sharply from R315 million to R598 million without a corresponding increase in patient numbers.

Authorities have referred 116 disciplinary cases, with over 100 already submitted to the health department, alongside referrals to the National Prosecuting Authority and the South African Health Products Regulatory Authority.

Investigators also traced over R122 million in payments to 15 hospital employees, including large unexplained transfers to both senior and junior staff members.The SIU says investigations are continuing as it works to dismantle the wider corruption network.