Special Investigating Unit secures R42.4 million in cash and assets linked to bribes paid to Tembisa Hospital officials

The Special Investigating Unit (SIU) has secured approximately R42.4 million in cash, properties, pensions and investments linked to the R100 million in bribes allegedly paid by businessman Stefan Joel Govindraju to officials at Tembisa Hospital to secure procurement deals worth approximately R600 million.

The Special Tribunal granted the SIU a preservation order last month, preventing the disposal of assets belonging to Mr Zacharia Tshisele, his civil wife Phumudzo Tshisele, his customary wife Fulufhelo Lineth Tshililo, and entities and associates connected with them.

The order also restrains payments and dealings by companies and individuals implicated in the corruption network, including Joseph Fhumulani Muthaphuli and Ernest Monnakgotla, former Area Manager at Tembisa Hospital and a member of the hospital’s Quotation Adjudication Committee. Tshisele and Monnakgotla allegedly worked together to siphon funds from Tembisa Hospital’s coffers into two major syndicates.

The Tribunal order also interdicts the Government Employees Pension Fund and Government Pensions Administration Agency from paying out Tshisele’s pension, valued at R1,089,808.32, and froze two properties: the Birchleigh North property in Kempton Park registered in the names of Tshisele and his wife Phumudzo, and the Delmore Park property in Boksburg registered in the name of Tshililo. These properties are valued at approximately R1.3 million and R820,000 respectively.

The SIU investigation revealed that two of the three major syndicates operating at Tembisa Hospital are linked to Tshisele. The first being the Govindraju syndicate, run by Mr Stefan Joel Govindraju, which used 75 companies to trade with the hospital and received approximately R600 million. The second being the Mazibuko syndicate, operated by Mr Rudolf Mduduzi Mazibuko, which used 17 companies to trade with the hospital and received approximately R283 million. Both syndicates relied on corrupt cooperation from hospital officials, including Tshisele and Monnakgotla, to facilitate unlawful procurement.

The SIU investigation found that Tshisele, appointed Operational Manager of the hospital’s theatre in 2017, abused his position to initiate supply chain processes and confirm receipt of goods, enabling payments to syndicate-linked companies. He was directly involved in transactions worth approximately R15.9 million, each kept below the R500,000 threshold to avoid competitive bidding. These transactions were often unnecessary, undelivered, or only partially delivered, violating the Constitution, the Public Finance Management Act, the Public Service Act, Treasury Regulations, and the Prevention and Combating of Corrupt Activities Act.

Funds from the Govindraju syndicate, including payments from Diolinx and Fuligenix, were channelled through Create 10, co-directed by Tshisele, Monnakgotla and Muthaphuli. These financed properties, mining ventures, and a film project. Tshisele and Monnakgotla invested R17.5 million in Manngwe Mining and Solmag Mining, while R15.5 million was advanced through Time Bomb towards the production of a movie titled “The Bad Bishop”. Notably, R1.5 million was transferred into the account of Tshisele’s nine-year-old daughter.

The Tribunal order directed Manngwe Mining, Solmag Mining, and Time Bomb to pay all amounts due under their funding agreements into the trust account of the SIU’s attorneys, Noko Maimela Incorporated, pending final determination of the main proceedings. It also barred Create 10 and its directors from disposing of assets, declaring dividends, or incurring new liabilities outside the ordinary course of business.

In 2025, Tshisele signed an Acknowledgement of Debt with the SIU, committing to repay unlawfully obtained funds. He has since repaid R13,530,894.27 in four instalments. Manngwe Mining also agreed to repay R17.5 million over 36 months.

In May, the SIU obtained an order freezing a R6.4 million luxury property in Midstream Estate and R1.8 million in pension benefits belonging to former Tembisa Hospital official Duduzile Nobungwana.

Preservation orders and payment agreements against Tshisele and Nobungwana bring the total value of preserved cash and assets to approximately R42.4 million, which syndicate members paid as bribes. The two are not challenging the SIU's actions.

In line with the SIU Act 74 of 1996, the SIU has referred evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action, while continuing civil proceedings to recover losses suffered by the State. The referral led to Govindraju's arrest last month on multiple charges arising from allegations of procuring medical supplies and equipment at Tembisa Hospital. The charges include 70 counts of fraud, theft, money laundering and corruption-related offences.

Enquiries:
Selby Makgotho
Spokesperson: Special Investigating Unit
Cell: 083 718 6128
E-mail: SIUMedia@siu.org.za

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