28/05/2026
| SIU OBTAINS PRESERVATION ORDER FOR R6.4 MILLION LUXURY PROPERTY AND R1.8 MILLION FROM PENSION FUND OF FORMER TEMBISA HOSPITAL OFFICIAL AND UNVEILS SYNDICATE X
The Special Investigating Unit (SIU) has obtained a preservation order and an interim interdict over an immovable property valued at R6.4 million and R1.8 million in pension benefits belonging to Duduzile Nkosazana Nobungwana, a former supply chain clerk at Tembisa Hospital in Gauteng. Nobungwana resigned in the middle of a disciplinary hearing.
The order was granted by the Special Tribunal to prevent the sale of property and to safeguard assets suspected of being the proceeds of unlawful activities linked to a major procurement syndicate at Tembisa Hospital, known as Syndicate X. The SIU can now reveal that the face behind the syndicate is Stefan Joel Govindraju.
Preservation of property linked to unlawful proceeds
The SIU’s investigation found that the luxury property in Midstream Estate was purchased with funds derived from secret profits, kickbacks, and bribes paid by suppliers doing business with Tembisa Hospital.
The SIU’s investigation reveals that Nobungwana, who held several key positions at Tembisa Hospital, including Chief Buyer and member of the Vetting Committee in the Supply Chain Management (SCM) unit, played a central role in the irregular adjudication and appointment of various suppliers. She is alleged to have received undisclosed, undue gratification from certain suppliers, thereby violating her duties without disclosing it to her employer.
A portion of these illicit payments was allegedly channelled through a front company, Mabitwa Trading, to fund the purchase of Midstream Property. This property was purchased through Mabitwa Trading and registered in the name of Amatibe Holding, a company owned and directed by her son, Oscar Nobungwana.
Unveiling Syndicate X and its role in the property purchase
In September 2025, the SIU held a media briefing and revealed the three main syndicates that siphoned funds from Tembisa Hospital through the purchase order system. The SIU investigation has uncovered the existence and operations of a large procurement network at Tembisa Hospital, referred to as Syndicate X. This syndicate is linked to Stefan Joel Govindraju.
Evidence from the SIU investigation shows that Govindraju is the director of at least 75 entities, 73 of which were irregularly appointed at Tembisa Hospital. During the period under review, these entities were awarded 1 237 contracts through a purported three-quote procurement process that did not comply with applicable procurement prescripts.
The SIU’s probe revealed that the Govindraju-linked suppliers allegedly received total payments of approximately R596 424 356.10 arising from these contracts, which are considered highly irregular and non-compliant. The SIU further identified approximately R100 million in payments from the alleged Govindraju syndicate to former and current Tembisa Hospital officials involved in supply chain management, which are suspected of constituting undue gratification.
Funds used to acquire the Midstream Property were allegedly traced to payments made by companies within this network, including entities linked to Govindraju’s syndicate. Payments from these suppliers flowed to Mabitwa Trading and were used to finance the purchase of the property, which was ultimately registered in the name of Amatibe Holding.
Interdict over pension benefits
In addition to the property, the SIU preserved Nobungwana’s pension benefits, valued at approximately R1.8 million, held by the Government Employees Pension Fund (GEPF) and administered by the Government Pensions Administration Agency (GPAA).
The SIU order restricts pension fund administrators from paying Nobungwana’s pension benefits and prevents the dissipation of these pension funds pending the finalisation of the SIU’s civil action to recover losses suffered by the State.
The preservation of the pension benefits is necessary as the SIU found that Nobungwana’s alleged misconduct contributed to irregular expenditure of at least R5.1 million and damages of approximately R13.6 million to the State. The pension benefits, therefore, form an important part of the asset pool that may be used, subject to the Tribunal’s decision, to compensate the public purse.
The SIU is directed by Proclamation No. 136 of 2023, signed by President Cyril Ramaphosa, to investigate allegations of corruption and maladministration in the affairs of the Gauteng Department of Health and the Tembisa Hospital. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU has also referred any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action.
Under the SIU Act, the SIU is also authorised to initiate civil proceedings in the High Court or a Special Tribunal in its name to address any wrongdoing identified during its investigation in order, inter alia, to recover any losses suffered by the State.
Image source: News24
