SIU reveals Stefan Joel Govindraju is the ‘face behind Sydicate X’
Image: SIU on X
THE Special Investigating Unit has obtained a preservation order against a former Tembisa Hospital official, revealing a complex network of procurement corruption linked to R6.4 million in assets and R1.8 million in pension benefits.
The order, granted by the Special Tribunal, forms part of the SIU’s investigation into alleged unlawful procurement activities linked to a network known as Syndicate X at the Gauteng hospital.
The SIU said the assets are linked to Duduzile Nkosazana Nobungwana, a former supply chain clerk at Tembisa Hospital who resigned during a disciplinary hearing.
The unit said the preservation order was granted to prevent the sale of the property and to safeguard assets suspected to be proceeds of unlawful activities.
“The SIU can now reveal that the face behind the syndicate is Stefan Joel Govindraju,” the unit said.
According to the SIU, its investigation found that the luxury Midstream Estate property was purchased using funds allegedly derived from secret profits, kickbacks and bribes paid by suppliers doing business with Tembisa Hospital.
The SIU said Nobungwana, who held positions including Chief Buyer and member of the Vetting Committee in the hospital’s Supply Chain Management unit, allegedly played a central role in the irregular adjudication and appointment of suppliers.
''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.''
It further alleged that Nobungwana received undisclosed gratification from suppliers and that some of the payments were channelled through a front company, Mabitwa Trading, to finance the purchase of the Midstream property.
The property was allegedly purchased through Mabitwa Trading and registered in the name of Amatibe Holding, a company owned and directed by her son, Oscar Nobungwana.
The SIU said its investigation uncovered the existence of a wider procurement network at Tembisa Hospital, referred to as Syndicate X, allegedly linked to businessman Stefan Joel Govindraju.
“The SIU’s 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,” the unit said.
According to the SIU, Govindraju is the director of at least 75 entities, 73 of which were allegedly irregularly appointed at Tembisa Hospital.
The unit said these entities were awarded 1 237 contracts through a purported three-quote procurement process that allegedly failed to comply with procurement prescripts.
The SIU said companies linked to the syndicate received payments amounting to approximately R596.4 million, while about R100 million was allegedly paid to current and former hospital supply chain officials as suspected gratification.
It said funds used to acquire the Midstream property were traced to payments made by companies linked to the syndicate and channelled through Mabitwa Trading before the property purchase.
In addition to the property order, the SIU also obtained an interdict preserving Nobungwana’s pension benefits, valued at approximately R1.8 million.
“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,” the unit said.
The SIU said the preservation order was necessary because Nobungwana’s alleged conduct contributed to at least R5.1 million in irregular expenditure and approximately R13.6 million in damages to the state.
The investigation forms part of Proclamation No. 136 of 2023, signed by President Cyril Ramaphosa, authorising the SIU to investigate allegations of corruption and maladministration at the Gauteng Department of Health and Tembisa Hospital.
The SIU said evidence of criminal conduct uncovered during the investigation has been referred to the National Prosecuting Authority for further action, while civil recovery proceedings continue through the Special Tribunal and the High Court under the SIU Act.
''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.''