The arrest of a key player in the Tembisa Hospital procurement fraud scandal, six years after whistle-blower Babita Deokaran was assassinated for flagging irregular tenders, could finally move the slow-paced investigations forward, notes MedicalBrief.
Stefan Govindraju's arrest on Friday – as part of a plea bargain deal with the state and following negotiations over three years – is the first of an alleged kingpin behind the Health Department tender fraud which saw more than R2bn looted in a complex web of corruption and fraud involving at least three businessmen.
Govindraju appeared in court on Monday and was released on R200 000 bail, reports News24. His attorney, Kamesh Maharaj, said: “His passports have been given to the investigating officer. We have been co-operating with the prosecuting authorities and negotiating for more than two years leading up to this.”
The National Prosecuting Authority (NPA) has confirming ongoing negotiations between the parties, with spokesperson Kaizer Kganyago saying that the state had decided not to oppose the bail application.
Kganyago said Govindraju, the alleged mastermind behind “Syndicate X”, had been co-operating with investigators since 2023, reports The Citizen.
The NPA’s decision comes as plea deal negotiations between the prosecution and Govindraju continue, and while Kganyago did not disclose details of the discussions, he indicated that the parties could reach an agreement before Govindraju returns to court on 29 September.
He said Govindraju had also voluntarily surrendered properties to the NPA’s Asset Forfeiture Unit (AFU), the assets forming part of the considerations for the bail proceedings and ongoing negotiations. The NPA has not disclosed the properties’ value.
The Hawks say Govindraju’s arrest is not the end of the investigation into the Tembisa corruption, with spokesperson Katlego Mogale adding that the investigation was ongoing.
“This is a rather complex investigation which has been divided into seven legs within the DPCI: we’ve got seven teams of prosecutors and investigators looking into the various avenues and stages.”
SIU spokesperson Selby Makgotho said the unit welcomed the latest developments, but also stressed that its work was not yet complete.
The SIU’s investigation has previously uncovered a network of companies allegedly linked to Govindraju, who was a director of at least 75 entities irregularly appointed at Tembisa Hospital and awarded 1 237 contracts through a purported three-quote procurement process which the SIU alleges failed to comply with applicable procurement prescripts.
Payments to suppliers linked to Govindraju amounted to R596.4m, with the SIU’s investigation further uncovering R100m in payments from the Govindraju-linked syndicate to former and current Tembisa Hospital officials involved in supply chain management (SCM).
Separate syndicates
Govindraju is not the only businessman implicated in the Tembisa Hospital scandal.
Controversial businessmen Hangwani Morgan Maumela and Rudolph Mazibuko have previously been identified as the alleged leaders of two other syndicates linked to the hospital.
The Maumela syndicate is reported to have benefited from more than R800m. Authorities have already moved against several of Maumela’s assets.
The Special Tribunal granted a preservation order over assets worth about R520m, including a Sandton mansion, jewellery and luxury vehicles. Maumela has still not been arrested or charged.
Mazibuko, whose 17 companies pulled out more than R280m, has neither been arrested nor charged.
Kingpin supreme
Govindraju was exposed by News24 as the shadowy kingpin behind the network of shell companies stealing millions in crooked deals from the hospital. Of the distinct syndicates looting money from the facility, he was among the largest beneficiaries of the R2.3bn extracted and was only stopped because assassinated Gauteng Health department whistleblower Deokaran reported anomalous spending patterns.
She was murdered in 2021, 19 days after flagging R850m in “possibly fraudulent” payments and halting the outflow of money pending a sweeping investigation.
After Deokaran’s death, her report was covered up.
Contract factory
Govindraju headed a syndicate through which proxy directors would helm five companies, all formed on the same day, carrying nonsensical names and using fake addresses.
After the directors’ identities were published by, all resigned en masse and ceded control to Govindraju. The directors represented a motley coterie of his lovers, relatives, friends and co-workers.
News24 reported at the time that among the companies, which existed only on paper, was a supplier who sold a consignment of children’s skinny jeans to the hospital for R500 000.
The SIU probe expanded Govindraju’s known sphere of influence to 98 fake firms in simultaneous trade with the hospital. Most of these have since fallen dormant.
‘Not good enough’
While Govindraju’s arrest represents progress and accountability, at snail’s pace, separate investigation into Deokaran’s murder seems to have paused.
Six hitmen were arrested on 27 August 2021, but their paymaster has been free for 1 834 days since the killing.
At a memorial service on the anniversary of her death, Acting Police Minister Firoz Cachalia said: “From my point of view, five years later, that’s just not good enough.”
He said he had met Hawks investigators regarding Deokaran’s case, who claimed they were not at a stalemate, despite the five-year delay in bringing the masterminds before the courts.
“They said… they are continuing their efforts, but the real question is why the kingpins, the people who financed this brutal murder, haven’t been brought to book,” Cachalia said.
See more from MedicalBrief archives:
Tembisa officials helped kingpin score R25m in two hours
Tembisa Hospital ‘kingpin’ nailed by SARS on tax charges
Tembisa Hospital kingpin loses more supercars
Tembisa Hospital tender prices were upped by 2 000%