Unlicensed med suppliers exposed in Tembisa Hospital corruption probe
The Special Investigating Unit's progress report on its probe into fraud and corruption by the Gauteng Department of Health and the Tembisa Hospital, found that various service providers formed syndicates and colluded with one another to hide the identities of those who finally benefited from the Tembisa Hospital cash cow.
Image: Dimpho Maja/African News Agency(ANA)
THE South African Health Products Regulatory Authority (SAHPRA) has thrown its weight behind a major crackdown on corrupt service providers who allegedly defrauded the Gauteng Department of Health (GDoH) and Tembisa Hospital to the tune of R2 billion.
The move follows a damning progress report by the Special Investigating Unit (SIU), which revealed widespread fraud, bribery, fronting, bid rigging, and gross procurement irregularities within the GDoH by greedy officials at the cost of vital healthcare services.
The SIU investigation, which is still ongoing, found that between 2018 and 2023 that over R2 billion meant for essential healthcare services was plundered by politically-connected criminal syndicates, aided by public officials who received over R122 million for their complicity.
According to the SIU, numerous contracts were awarded to companies that were fraudulently appointed and, in many cases, completely unlicensed to supply medical devices, a direct violation of the Medicines Act.
“SAHPRA confirmed that none of the service providers under investigation held valid licences to supply medical devices during the period in question,” stated the report.
As a result, the SIU has referred 25 cases of non-compliance to SAHPRA. These involve service providers who were not registered to manufacture or distribute medical devices, as required by law. Because these violations also carry potential criminal charges, the cases have been escalated to the National Prosecuting Authority (NPA).
Yuven Gounden, SAHPRA spokesperson said “SAHPRA has provided the information when it was requested. It is now up to law enforcement to take this further. Investigations are ongoing".
Gounden said their Regulatory Compliance unit will work with law enforcement agencies, who will take further action.
The SIU report found that government officials selfishly abused their positions within every step of the Tembisa Hospital procurement chain to the benefit of the fraudulently appointed service providers and to ultimately enrich themselves.
"Through their actions, these officials showed a ruthless disregard for the law, their employer, their community and their patients. They run Tembisa Hospital like their own private business, wheeling and dealing with corrupt service providers to support their lavish lifestyles at the expense of human life and the dignity of the patients.
"In light of the corrupt actions of the GDOH officials, the money looted was intended to line their own pockets or those of the service providers; it was never intended to provide crucial medical care to the most vulnerable people within our country," read the report.