When Dr Ashley Mthunzi, former CEO of Tembisa Hospital died in October 2025, the R2 billion corruption scandal that has haunted Gauteng’s health system took a dramatic turn.
Background: A hospital caught in a national health crisis
Tembisa Hospital, located in the Tembisa township of Ekurhuleni, Gauteng, has long been a focal point for public‑health delivery in the region. The facility’s problems erupted after the death of whistle‑blower Babita Deokaran on 23 August 2021. Deokaran, a procurement officer, was fatally shot outside her home, an event that ignited public outrage and prompted a Special Investigating Unit (SIU) probe.
The SIU, a statutory body tasked with probing major fraud, launched an investigation in December 2021 that uncovered roughly R2 billion in irregular contracts awarded during the COVID‑19 pandemic. The contracts, many awarded to a handful of service providers who also serviced other Gauteng hospitals, raised red flags about tender integrity and possible kick‑backs.
Key players and the unfolding investigation
In August 2022, Dr Ashley Mthunzi was suspended alongside Lerato Madyo, the chief financial officer of the Gauteng Department of Health. The suspension stemmed from allegations that Mthunzi had overseen the award of irregular contracts totalling R2 billion.
However, the SIU’s final report painted a more nuanced picture. According to the SIU, there was *no direct evidence* linking Mthunzi to fraud. Minutes of tender meetings showed that he was not the signatory on any contracts, nor was he employed at the hospital when its largest tender was commissioned.
The report also highlighted that many of the contracts pre‑dated Mthunzi’s appointment, suggesting that the procurement irregularities were inherited from previous administrations.
Voices from the front line
Mrs. Lerato Mthunzi, the widow of the late CEO, vehemently defended her husband. “He walked into a mess that had been built before him,” she told reporters in a press conference in September 2025. “The suppliers were already in place, the contracts were locked, and canceling them would have cost the department even more.”
The Public Protector issued its own findings in 2024, concluding that the Gauteng Health Department had acted irregularly in appointing Mthunzi. The report cited “material inaccuracies” on his application and a failure by the interview panel to probe discrepancies.
Despite the Public Protector’s damning language, the SIU’s lack of direct evidence left prosecutors with a dilemma. As of May 2023, disciplinary charges were slated for August 2023, but the hearings kept slipping, with expectations that they would stretch well into 2024.
Impact on the health system and taxpayers
The scandal has cost the Gauteng Treasury an estimated R350 million in legal fees and audit expenses alone. More importantly, patients at Tembisa and neighboring hospitals faced delays in receiving essential services, from emergency care to routine surgeries.
Health‑policy analyst Thabo Nkosi warned, “When contracts are awarded without transparent competition, the quality of service drops and prices inflate. It’s not just a bookkeeping problem; it’s a public‑health emergency.”
Community groups have staged protests outside the Gauteng Department of Health headquarters, demanding a full public inquiry and accountability for all officials involved—past and present.
What happens now that the former CEO is deceased?
Mthunzi’s death in October 2025 has added a legal twist. The disciplinary process, which relied on his personal testimony and the possibility of a plea, now faces procedural dead‑ends. The Gauteng Department of Health announced on 5 November 2025 that the case would be referred to the National Prosecuting Authority for a possible criminal review, but no timeline was given.
Meanwhile, the SIU’s forensic report remains on the table, and the Public Protector’s recommendations are still pending implementation. Critics argue that without Mthunzi’s presence, the department may try to close the file quickly, potentially leaving victims without full redress.
Looking ahead: reforms and lessons learned
In the wake of the saga, Gauteng’s health minister has pledged a complete overhaul of procurement procedures. The proposed reforms include:
- Mandatory public disclosure of all tenders above R10 million.
- Independent oversight by a newly formed Health Procurement Integrity Board.
- Digital tracking of contract performance to flag irregularities in real time.
These measures aim to prevent a repeat of the Tembisa debacle and restore public confidence. Whether they will be enacted before the next election cycle remains to be seen.
Key facts at a glance
- Date of death: October 2025.
- Alleged amount involved: R2 billion in irregular contracts.
- Investigating bodies: Special Investigating Unit, Public Protector, National Prosecuting Authority.
- Key officials suspended: Dr Ashley Mthunzi, CFO Lerato Madyo.
- Primary allegation: Awarding contracts without competitive bidding during COVID‑19.
Frequently Asked Questions
How does the scandal affect patients at Tembisa Hospital?
The irregular contracts meant that essential services—like equipment maintenance and cleaning—were delivered by under‑qualified firms, leading to longer waiting times and occasional equipment failures. For many residents, the fallout translated into delayed surgeries and reduced emergency‑room capacity.
What was the role of the Special Investigating Unit?
The SIU conducted a forensic audit of all tenders awarded between March 2020 and December 2021. Its final report concluded that while many contracts were irregular, there was no direct evidence linking Dr Ashley Mthunzi personally to fraudulent activity.
Why did the Public Protector’s report differ from the SIU’s findings?
The Public Protector focused on the recruitment process for the CEO role, finding that the Gauteng Department of Health failed to verify Mthunzi’s credentials and ignored inconsistencies. The SIU, meanwhile, examined contract execution and found no proof that Mthunzi signed or authorised the questionable deals.
What legal steps remain after Mthunzi’s death?
The disciplinary hearings have stalled, but the National Prosecuting Authority can still pursue criminal charges against other implicated officials. The department also faces pressure to implement the Public Protector’s recommendations, which include independent audits and potential civil claims for recovered funds.
Will the proposed procurement reforms guarantee future integrity?
The reforms—public tender disclosures, an integrity board, and digital tracking—are designed to close loopholes that allowed the Tembisa contracts to slip through. While no system is fool‑proof, experts say these steps significantly raise the barrier for corrupt practices and improve transparency for taxpayers.
Kim Coulter
October 2, 2025 AT 18:31It’s absurd how every new scandal just becomes a textbook case of systemic decay. The real tragedy isn’t the money lost, it’s the erosion of public trust. When leaders get tangled in inherited messes, we all pay the price in health outcomes. The only way out is a radical overhaul that tackles the root, not just the surface.