The Special Investigating Unit (SIU) says it has secured or preserved assets worth approximately R42.4 million linked to alleged corruption and irregular procurement at Tembisa Hospital, as its investigation continues to trace money allegedly channelled from hospital contracts into properties, investments and other ventures.
The latest developments come as the SIU pursues civil recovery proceedings against officials and businessmen allegedly involved in a sprawling procurement network at the Gauteng hospital.
The investigation has also resulted in the arrest of businessman Stefan Joel Govindraju, who faces 70 criminal charges arising from alleged procurement fraud and corruption at Tembisa Hospital.
The charges include fraud, theft, money laundering and corruption-related offences. Govindraju appeared in the Johannesburg Specialised Commercial Crimes Court in Palm Ridge on 31 August 2026 and was granted bail of R200 000. His matter was postponed to 29 September.
The SIU’s latest findings
The SIU says Govindraju was allegedly at the centre of one of three major procurement syndicates identified during its investigation into Tembisa Hospital.
According to the unit, approximately R600 million was paid to companies linked to the alleged Govindraju syndicate through procurement processes that the SIU says did not comply with applicable procurement rules.
The SIU identified 75 companies linked to Govindraju, with 73 allegedly trading with Tembisa Hospital. Between 2020 and 2023, those entities were awarded 1 237 contracts through what was described as a three-quotation procurement process.
The SIU says it also identified approximately R100 million in payments from companies linked to the alleged syndicate to current and former Tembisa Hospital supply chain officials.
Those payments are suspected by investigators to have been kickbacks or other forms of undue gratification.
“The arrest follows the SIU’s ongoing investigation into procurement irregularities and alleged corruption at Tembisa Hospital in Gauteng, including the activities of three main alleged procurement syndicates,” the SIU said.
The SIU has stressed that its investigation remains ongoing.
The R42.4 million asset trail
The asset recovery operation is part of the wider effort to trace what investigators believe are proceeds of unlawful activity.
The SIU has previously identified properties connected to another Tembisa Hospital syndicate with a combined value of approximately R42.65 million. Its September 2025 progress report said the assets included properties in Gauteng and the Western Cape allegedly acquired through funds channelled through secondary conduit accounts.
The unit has also obtained preservation orders over assets belonging to former Tembisa Hospital supply chain clerk Duduzile Nkosazana Nobungwana.
These include a Midstream Estate property valued at approximately R6.4 million and pension benefits worth about R1.8 million.
The SIU says its investigation traced funds allegedly used to acquire the Midstream property to payments made by companies within the procurement network.
The Special Tribunal preservation order prevents the property from being sold or transferred while the SIU pursues its civil recovery action. The pension benefits have similarly been preserved to prevent their dissipation.
Tshisele and the R13.5 million repayment
Former Tembisa Hospital official Zacharia Tshisele is another central figure in the SIU’s investigation.
The SIU says Tshisele, who worked as an Operational Nursing Manager, was able to initiate Supply Chain Management processes as an “end-user” and facilitate payments by confirming that goods had been received.
The unit previously arrested Tshisele after allegedly uncovering evidence that he received unlawful gratification from service providers between January 2020 and September 2023.
In November 2025, Tshisele paid R13 530 904.27 to the SIU.
The unit described the payment as representing a portion of his alleged ill-gotten gains, while stressing that its civil investigation into the recovery of all proceeds allegedly linked to him remains ongoing.
The SIU has also referred evidence of possible criminal conduct to the National Prosecuting Authority (NPA), the Directorate for Priority Crime Investigation and the Asset Forfeiture Unit.
How the Tembisa procurement network allegedly worked
The scale of the investigation emerged publicly in September 2025 when the SIU revealed that it had uncovered three major alleged procurement syndicates operating at Tembisa Hospital.
At the time, the unit said the three networks had collectively siphoned more than R2 billion intended for healthcare.
The investigation followed concerns about procurement practices at the hospital and the analysis of thousands of procurement documents.
The SIU’s September 2025 progress report recorded 2 207 procurement bundles under investigation. It identified the Maumela syndicate, the Mazibuko syndicate and what was then referred to as Syndicate X, now identified by the SIU as the Govindraju syndicate.
The SIU said the Govindraju-linked companies received approximately R596.4 million from contracts under investigation, while the Mazibuko syndicate involved procurement bundles worth about R283.5 million.
The investigation also found evidence of alleged fronting, bid manipulation, irregular appointments and the movement of money through companies and bank accounts.
The Babita Deokaran connection
The Tembisa Hospital investigation has its roots in concerns raised before the SIU’s current probe.
The late Gauteng Department of Health financial officer Babita Deokaran had raised concerns about suspicious spending and procurement patterns at the hospital before her murder in August 2021.
In December 2022, the Gauteng government said an SIU investigation had confirmed findings contained in a forensic report associated with Deokaran, including alleged maladministration, fraud and corruption involving Supply Chain Management.
Investigators found evidence that fraudulent suppliers were allegedly doing business with the hospital, while there were irregularities in bid documentation and the appointment of service providers.
The SIU was subsequently authorised under Proclamation 136 of 2023 to investigate allegations of corruption and maladministration involving the Gauteng Department of Health and Tembisa Hospital.
Govindraju’s arrest changes the investigation
Govindraju’s arrest represents a significant criminal development in the investigation.
The NPA alleges that between January 2020 and April 2023, he was the beneficial owner of numerous companies used to obtain procurement contracts from Tembisa Hospital and the Gauteng Department of Health.
Prosecutors allege that fronting and cover quoting were used to create the appearance of fair and competitive procurement.
The NPA further alleges that fraudulent or non-compliant documents were submitted and that some entities were paid for goods or services that were not legitimately delivered. It puts the alleged prejudice to the Gauteng Department of Health, Tembisa Hospital and National Treasury at more than R583 million.
The NPA also alleges that more than R41 million in gratification was paid to Tembisa Hospital officials.
These are allegations before the court and have not been established as criminal convictions.
The money trail is still being followed
The SIU’s work is not limited to identifying people allegedly involved in the procurement schemes.
The unit is also attempting to follow the money and recover assets that it believes were acquired using proceeds connected to the alleged corruption.
In the case of Nobungwana, investigators say money from suppliers within the network was channelled through companies before being used to finance the Midstream property.
In Tshisele’s case, the R13.53 million payment represents money already recovered, although the SIU says it is still pursuing further recovery.
The SIU has also said it has identified approximately R150 million in assets linked to Govindraju, although that figure represents assets identified in connection with the wider investigation and should not be confused with the approximately R42.4 million in assets referenced in the latest recovery picture.
The distinction is important because preservation of an asset does not itself amount to a final forfeiture or a finding that the owner is criminally liable.
SIU: civil recovery proceedings continue
The SIU says its mandate includes pursuing civil proceedings to recover financial losses suffered by the State.
Evidence suggesting criminal conduct is referred to the NPA, while the SIU uses the Special Tribunal and courts to pursue recovery of assets and money allegedly linked to unlawful activity.
“The SIU’s civil investigation to recover all proceeds of corruption from Tshisele remains ongoing,” the unit said.
The investigation into Tembisa Hospital remains active, with the SIU continuing to analyse procurement transactions, trace assets and pursue action against officials and companies allegedly connected to the procurement networks.
For a hospital serving communities in one of Gauteng’s most densely populated areas, the investigation has raised broader questions about how public healthcare money was spent, who benefited from the contracts and how long alleged procurement irregularities were allowed to continue.
