R2 Billion Tembisa Hospital Heist: Whistleblower Murder Sparks Crisis

When Babita Deokaran, Chief Director of Financial Accounting at the Gauteng Department of Health, blew the whistle on a massive procurement scheme at Tembisa Provincial Tertiary Hospital, she probably didn’t expect to be gunned down outside her Johannesburg home.

Her death on a chilly October night in 2021 set off a chain of investigations that have now revealed a looting operation worth R2 billion (about US$109 million). The Special Investigating Unit (SIU) handed a preliminary report to the Gauteng Premier on 15 December 2022, but it wasn’t until October 2025 that the full scope of the fraud became public.

Why does this matter? Because the money never bought a single medical device for the hospital. Instead, it lined the pockets of a network of contractors, a Sandton‑based businessman, and a handful of senior officials. The result? A chronically understaffed hospital, patients being discharged before they’re stable, and, according to Corruption Watch, “people died due to a lack of treatment, food, and care.”

How the scheme unfolded

The SIU’s audit uncovered more than 217 irregular contracts, many deliberately capped at R500 000 to sidestep stricter procurement thresholds. These contracts were awarded to shell companies that, in turn, funneled cash to a syndicate led by Hangwani Maumela. Raids on his Sandton mansion and a car dealership in Mpumalanga recovered luxury assets but no trace of the stolen hospital funds.

Initially, Babita flagged roughly R850 million in suspicious payments. As the investigation deepened, the figure ballooned to over R2 billion – a staggering escalation that shocked even seasoned anti‑corruption activists.

"This scandal constitutes not only a grave betrayal of public trust but also a direct attack on the dignity and rights of the poor who depend on public health care," said Bishop Thulani Victor Mbuyisa, chairman of the Justice and Peace Commission of the Southern African Catholic Bishops' Conference, on 3 October 2025.

Human cost inside Tembisa Hospital

Staff described the working conditions as "horrid" in an SABC report aired the same day. One nurse lamented, "I feel very very very bad because we nurses are working under severe severe conditions… sometimes there are no medication and everything falls onto a nurse."

With fewer than half the required workforce, the hospital has been operating without a CEO for years. Bed shortages force premature discharges, and patients with serious ailments are left without essential care.

According to a 2025 audit by Corruption Watch, the neglect directly linked to the looted funds contributed to a spike in preventable deaths across the Gauteng region.

Reactions from civil society and government

"Together, these cases tell a single story. The rot is not confined to one department or one corrupt official," warned Wayne Duvenage, CEO of OUTA (Organization Undoing Tax Abuse). He called for a stronger, independent SIU, a fully resourced National Prosecuting Authority, and an empowered Hawks unit.

In response, the Gauteng Department of Health suspended six of the nine officials named in the SIU report by October 2025. The deputy director for supply chain retired, the chief physiotherapist resigned, and a sessional medical officer stopped working at the facility.

Rakesh Deokaran, brother of the slain whistleblower, told The Mercury on 8 October 2025, "We are tired of reports and commissions; heads must now roll. Without consequences, corruption will persist. We need a precedent set to instill fear in any would‑be perpetrator of fraud and corruption."

Legal and financial fallout

The SIU is preparing a proclamation that would empower it to pursue civil litigation, freeze pension benefits of implicated officials, and recover the siphoned assets. If gazetted, the proclamation could also compel blacklisting of the 217 service providers involved.

• R2 billion alleged misappropriated – none used for hospital equipment.
• 217 irregular contracts, many under R500 000.
• Six officials suspended; one senior manager retired.
• Raids on Hangwani Maumela’s properties yielded luxury cars and a mansion, not public funds.
• Hospital operating at < 50% staffing, no CEO for years.

Experts warn that without swift prosecution, the case will join a long list of South African corruption scandals that fizzled after initial media frenzy. The NPA, Hawks, and SARS have all been urged to coordinate closely and avoid the bureaucratic delays that have plagued past investigations.

What’s next for Tembisa and the broader fight against graft

Within the next few weeks, the Gauteng premier is expected to sign the SIU proclamation. Once signed, the unit can issue notices to freeze assets, begin civil suits, and hand over criminal dossiers to the NPA.

Meanwhile, patient advocacy groups are pushing for an emergency health‑care task force to stabilize Tembisa Hospital’s operations. If successful, the task force could bring in temporary staff, essential medicines, and a provisional CEO to restore basic services while the legal process unfolds.

For the families of the victims, the hope is simple: accountability. For a country already wrestling with a series of high‑profile corruption scandals, the Tembisa case could become a turning point – or another footnote – depending on how rigorously the law is applied.