The Special Investigating Unit (SIU) has carried out a high-profile raid on the luxury Sandhurst mansion of businessman Hangwani Maumela, seizing a fleet of expensive vehicles, designer furniture, and valuable artwork as part of an ongoing R820 million asset recovery operation connected to the R2 billion Tembisa Hospital corruption scandal....Click to Read More >>➤

The early morning raid on Thursday, authorised by a Special Tribunal order, marks a major escalation in South Africa’s crackdown on large-scale corruption within the public healthcare system. Investigators say the operation targets individuals and networks allegedly involved in siphoning off massive sums meant for medical services and hospital infrastructure.

Assets Seized in Sandhurst Raid

During the raid, SIU officials and law enforcement agents reportedly confiscated high-end items, including multiple luxury cars and exclusive art pieces. The items were seized as part of the state’s efforts to recover misappropriated public funds linked to irregular contracts awarded by Tembisa Hospital.

Maumela, who is reportedly one of Gauteng’s wealthiest politically connected businessmen, has been under investigation for months for his alleged role in a multi-billion-rand procurement syndicate. His companies are believed to have benefited from inflated and fraudulent tenders issued by Tembisa Hospital officials.

Sources within the investigation told IOL that the SIU’s latest move is part of a broader asset forfeiture strategy aimed at clawing back at least R300 million in unlawfully gained wealth from Maumela and his associates.

Inside the R2 Billion Tembisa Hospital Scandal

The Tembisa Hospital case, one of the largest corruption scandals in South Africa’s health sector, involves the alleged looting of over R2 billion through fraudulent procurement deals. Investigators uncovered evidence of thousands of irregular purchase orders, many of which were for goods that were never delivered.

Funds intended for essential hospital supplies, medical equipment, and patient care were reportedly diverted through shell companies and politically connected suppliers with some payments processed within days of fake invoices being submitted.

The SIU’s interim report described the scandal as a “devastating plunder of public funds”, warning that the corruption had directly endangered patients’ lives and eroded trust in the healthcare system.

Links to the Maumela Syndicate

Investigators have reportedly identified three major syndicates behind the looting — one of which has been dubbed the Maumela Syndicate. The group is suspected of orchestrating a vast network of fraudulent suppliers who collaborated with corrupt hospital administrators to drain public coffers.

Maumela’s companies which have also held government contracts in other provinces — are believed to have received hundreds of millions of rand through these schemes. In some cases, companies under his control allegedly received tenders without following proper procurement processes.

According to the SIU, asset tracing efforts revealed that proceeds from these fraudulent contracts were used to fund a lavish lifestyle that included luxury properties, imported vehicles, and expensive art collections.

Ties to Babita Deokaran’s Murder Probe

Maumela’s name also appears in a forensic report linked to the late whistleblower Babita Deokaran, who was assassinated in 2021 after exposing corruption at Tembisa Hospital. Deokaran’s investigations reportedly identified 14 companies tied to Maumela, with contracts worth over R415 million.

Her findings have since formed a critical foundation for the SIU’s ongoing probes and asset recovery actions. Authorities have not ruled out possible connections between Deokaran’s murder and individuals implicated in the tender fraud.

SIU’s Ongoing Crackdown

The SIU confirmed that the operation in Sandhurst is only one of several asset seizures planned in connection with the Tembisa Hospital procurement scandal. Officials are preparing further applications for preservation and forfeiture orders targeting other key players in the network.

“We are pursuing every avenue to ensure that public funds stolen through corrupt schemes are recovered and returned to the state,” an SIU source told IOL.

The raid underscores the government’s renewed effort to tackle corruption within state institutions and hold those responsible accountable, particularly in the health sector where mismanagement has had deadly consequences.

While Maumela has not yet issued a public statement, sources close to him suggest that his legal team is preparing to challenge the seizure order in court.

The SIU’s investigation continues, with more arrests and asset recoveries expected in the coming weeks as authorities close in on the remaining suspects linked to the Tembisa Hospital looting scandal. ...Click to Read More >>➤