Last year, the Special Investigating Unit (SIU) released details of its ongoing investigations into the hospital, first uncovered by whistleblower Babita Deokaran five years ago before she was assassinated.
The SIU revealed three syndicates had plundered Tembisa Hospital funds, looting more than R2 billion.
The syndicates were allegedly run by businessmen Stefan Govindraju, Hangwani Maumela and Rudolph Mazibuko, along with their suppliers.
They were said to have split payments to keep transactions below the R500,000 threshold.
Over 4,000 such transactions were uncovered.
The payments included, among others, R40,000 for four plastic buckets, 2,000 hand towels at R230 each, and 200 pairs of jeans at around R2,500 per pair.
Hawks spokesperson Katlego Mogale confirmed the suspect will appear in court on Monday.
“This approach was intentionally employed to circumvent the formal tender…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.