The investigation into the massive R2 billion corruption scandal at Tembisa Hospital has escalated, moving from procurement fraud to alleged obstruction of justice, following the arrest of a Tembisa Hospital official and a member of the Directorate for Priority Crime Investigation (DPCI), known as the Hawks.

Hospital official Zacharia Chisele (53) and Hawks Sergeant Papi Tsie (41) are facing corruption charges in the Pretoria Magistrates’ Court after an alleged R100,000 bribe was offered to an investigating officer to avoid prosecution in the ongoing probe.

The arrests followed an operation where Sergeant Tsie allegedly informed a DPCI officer (the complainant) that the hospital official wished to meet regarding the Tembisa Hospital investigation and was willing to offer “gratification” to avoid prosecution. On Sunday, 23 November 2025, the meeting took place, and the hospital official allegedly handed over R100,000 in cash. Both suspects were subsequently arrested and remanded in custody until December 2, 2025.

This development comes as heads begin to roll in the Gauteng Department of Health & Wellness (GDOH). Lesiba Arnold Malotana, the GDOH boss, was suspended with immediate effect on Tuesday, 14 October 2025, following the Special Investigating Unit (SIU) report into rampant corruption and theft at Tembisa Hospital. Gauteng Premier Panyaza Lesufi announced the suspension and appointed Dr Darion Barclay as acting Head of Department (HoD). Premier Lesufi reaffirmed the provincial government’s full support for the work of the SIU and law enforcement agencies, stressing a commitment to accountability.

Malotana’s suspension followed calls for his removal after the SIU probed two questionable contracts in which he was implicated. A whistle-blower had previously accused Malotana and two senior officials of manipulating supply chain processes to ensure the medical devices company BAS Medxpress (BAS Med) received two tenders in 2016 and 2017. The whistle-blower alleged Malotana and the two other officials received over R11 million in alleged kickbacks (R8m and R3m) for assisting in securing tenders, including for orthopaedic equipment.

The massive SIU investigation, which began as a secondment in September 2022 and expanded into a proclamation, targets the systematic looting of over R2 billion intended for vulnerable healthcare recipients. The SIU has revealed that nine syndicates, including three major coordinated criminal organizations—the Maumela Syndicate, the Mazibuko Syndicate, and Syndicate X—have taken root at the facility. The investigation covers transactions from 2018 to 2024 and involves 207 service providers and 4,501 purchase orders.

The primary tactic used by the syndicates was procurement fraud, involving the deliberate splitting of orders to keep transaction values just below the R500,000 threshold, thus bypassing competitive bidding and rigorous vetting processes. The SIU found that lower-level GDOH officials were corrupted to misuse their positions, enabling this fraudulent practice. The result was flagrant breaches of supply chain management policies, often yielding no value for the hospital, as money flowed through fronts and conduits directly to beneficiaries for asset purchases.

In a significant show of civil recovery, the SIU, SAPS, and Johannesburg Metropolitan Police Department (JMPD) have seized multi-million rand luxury assets suspected to be proceeds of the fraud. This includes preservation orders for R900 million worth of assets linked to the Tembisa Hospital syndicates. Assets seized from disgraced businessman Hangwani Maumela, linked to the Maumela Syndicate, include three Lamborghinis, a fully equipped home salon, and a Sandton mansion. The Asset Forfeiture Unit (AFU) secured preservation orders for Maumela’s properties and assets, collectively valued at R320 million, after uncovering that he allegedly used 41 companies to steal R820 million in just two years.

The networks of corruption were first flagged by Babita Deokaran, the GDOH Chief Director for Financial Accounting, 19 days before she was assassinated in August 2021. Deokaran, a whistleblower for the SIU, had diligently reported suspicious payments and tender fraud, noting that Tembisa Hospital’s purchase orders between R400,000 and R500,000 were nearly triple the combined total for the nine largest hospitals in Gauteng during the same period.

The SIU has prepared 116 disciplinary referrals against 13 officials, with 108 delivered to the GDOH. However, accountability for senior managers remains a concern for opposition parties and civil society groups. Dr Ashley Mthunzi, the former Tembisa Hospital CEO, died in April 2024 before his disciplinary hearing, which had been suspended multiple times, could be concluded. Similarly, the disciplinary hearing for former GDOH CFO Lerato Madyo, suspended in August 2022, has been suspended at least three times and was still pending as of June 2024.

The DA in Gauteng has expressed disappointment that no single company implicated has been blacklisted, while the Organisation Undoing Tax Abuse (Outa) stated that the disciplinary action was inadequate, suggesting that senior executives have not taken the corruption seriously enough.

Dr Sibongiseni Dhlomo, Chairperson of the Portfolio Committee on Health, welcomed the SIU’s efforts to identify implicated officials and recover stolen funds, stressing that the findings reveal acts of criminality that are a profound breach of public confidence. The investigation is expected to conclude in November 2027.