The Special Investigating Unit (SIU)has secured a major breakthrough in the Tembisa Hospital corruption scandal, freezing about R42.4 million in assets linked to alleged bribes paid to officials at the Gauteng facility.
The assets were frozen under a preservation order granted by the Special Tribunal.
The order bars the disposal of cash, properties, pension benefits and investments belonging to Tembisa Hospital official Zacharia Tshisele, his civil wife Phumudzo Tshisele, his customary wife Fulufhelo Lineth Tshililo, as well as companies and associates tied to the alleged procurement network.
According to the SIU, the frozen assets are linked to about R100 million in alleged bribes which businessman Stefan Joel Govindraju allegedly paid to hospital officials to secure procurement deals worth around R600 million. These are allegations at this stage and have not resulted in criminal convictions.
The order also covers former hospital officials Joseph Fhumulani Muthaphuli and Ernest Monnakgotla. The SIU alleges the three worked together to divert hospital funds into two procurement syndicates.
The latest preservation order is part of a much larger investigation. In its September 2025 interim report, the SIU said more than R2 billion may have been misappropriated at Tembisa Hospital through three major syndicates.
Investigators have identified two syndicates linked to Tshisele. The Govindraju syndicate allegedly used 75 companies to trade with the hospital and received about R600 million. The Mazibuko syndicate, allegedly operated by Rudolf Mduduzi Mazibuko, used 17 companies and received about R283 million.
Tshisele, appointed as Operational Manager of theatre in 2017, is accused of using his position to initiate supply-chain processes and confirm receipt of goods. The SIU says he was directly involved in transactions worth about R15.9 million, with deals allegedly split to stay below the R500,000 threshold that triggers competitive bidding.
In some cases, the SIU found, goods were allegedly unnecessary, never delivered, or only partially delivered.
The SIU has detailed how funds from the Govindraju-linked network were allegedly channelled through a company called Create 10, which was co-directed by Tshisele, Monnakgotla and Muthaphuli.
According to the investigation, the money was then diverted into private investments. About R17.5 million was invested in Manngwe Mining and Solmag Mining, while R15.5 million was advanced through Time Bomb towards a film titled The Bad Bishop.
The SIU further alleges R1.5 million was transferred into the bank account of Tshisele’s nine-year-old daughter.
The frozen assets include Tshisele’s pension, valued at about R1.09 million, a property in Birchleigh North, Kempton Park worth about R1.3 million, and another property in Delmore Park, Boksburg valued at about R820,000. The balance of the R42.4 million is held in cash and investments.
A preservation order does not mean the State has already recovered the money. It prevents the assets from being sold or moved while civil recovery proceedings continue.
The SIU says there has been partial repayment. Tshisele signed an Acknowledgement of Debt in 2025 and has since repaid R13.53 million in four instalments. Manngwe Mining has also agreed to repay R17.5 million over 36 months.
In total, the SIU has identified about R122.2 million in alleged corrupt payments linked to officials and employees of the Gauteng Department of Health and Tembisa Hospital.
Evidence of alleged criminal conduct has been referred to the National Prosecuting Authority.
Govindraju was arrested in August 2026 and faces 70 charges including fraud, theft, money laundering and corruption-related offences, according to the SIU.
The Tembisa Hospital matter, first flagged by murdered whistleblower Babita Deokaran in 2021, has become one of Gauteng’s biggest health corruption cases.
