The Special Investigating Unit (SIU) has secured a preservation order over a luxury Midstream Estate property and pension funds belonging to a former supply chain official at Tembisa Hospital, as it unmasks the man allegedly behind one of the hospital’s biggest procurement syndicates.
Who is Nkosazana Duduzile Nobungwana?
On Thursday, the unit revealed that it had obtained a preservation order and an interim interdict over an immovable property valued at R6.4 million, as well as approximately R1.8 million in pension benefits belonging to Nkosazana Duduzile Nobungwana, a former chief supply chain clerk at Tembisa Hospital in Gauteng.
According to the SIU, Nobungwana held several key positions at the hospital, including chief buyer and member of the vetting committee in the supply chain management unit, where she allegedly played a central role in the irregular adjudication and appointment of various suppliers.
The unit found that she recommended service providers and signed requisitions for quotations despite material supply chain management irregularities.
She was subsequently charged by the Gauteng Department of Health with gross misconduct for issuing purchase orders to linked suppliers and resigned in the middle of her disciplinary hearing in March 2024.
“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 stated.
How the luxury property was allegedly funded
The SIU’s investigation revealed that the luxury Midstream Estate property was purchased with funds derived from secret profits, kickbacks and bribes paid by suppliers to Tembisa Hospital.
Nobungwana is alleged to have received undisclosed, undue gratification from certain suppliers, 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 the Midstream property,” the SIU said.
The unit revealed that the property was subsequently registered in the name of Amatibe Holding, a company owned and directed by her son, Oscar Nobungwana.
The transaction was recorded as a cash purchase, with a R1 million deposit paid in September 2021 and the R4.6 million balance settled shortly thereafter.
“Funds used to acquire the Midstream property were allegedly traced to payments made by companies within this network, including entities linked to [the] syndicate,” the SIU added.
Unveiling Syndicate X and Stefan Joel Govindraju
The SIU publicly identified the man behind Syndicate X as Stefan Joel Govindraju.
The unit first disclosed the existence of three main syndicates siphoning funds from Tembisa Hospital through the purchase order system at a media briefing in September 2025, but withheld the identities of those involved at the time.
According to the SIU, Govindraju is the director of at least 75 entities, 73 of which were irregularly appointed at Tembisa Hospital.
“These entities were awarded 1 237 contracts through a purported three-quote procurement process that did not comply with applicable procurement prescripts,” the SIU stated.
The unit further revealed that the Govindraju-linked suppliers allegedly received total payments of approximately R596 424 356.10 from those contracts.
“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,” the unit said.
The money trail
The SIU laid out a clear payment pattern in its investigation findings.
It said Govindraju-linked companies received payments from Tembisa Hospital, after which the funds were moved to Diolinx (Pty) Ltd, a company owned by Govindraju, and then transferred to Mabitwa Trading, the front company linked to Nobungwana.
Furthermore, Nobungwana served on the quotation adjudication committee between July 2020 and July 2021.
“Nobungwana, a quotation adjudication committee member, recommends service providers linked to Stefan Joel Govindraju for R10 805 650 in contracts, despite SCM irregularities and no SAHPRA registration,” the SIU noted.
According to the unit, Diolinx alone transferred R3 650 000 to Mabitwa Trading between February and June 2022, while a further R3 900 000 was transferred between May 2021 and March 2022.
In total, the SIU revealed that R6 112 105.25 was transferred to conveyancers from Mabitwa Trading and Tembisa Hospital service providers to complete the property transaction.
This includes Apollo Clothing and Nadofiled (Pty) Ltd, both linked to Rudolph Mduduzi Mazibuko.
Pension funds frozen alongside luxury property
In addition to the property, the Special Tribunal granted an order preserving Nobungwana’s pension benefits held by the Government Employees Pension Fund and administered by the Government Pensions Administration Agency.
According to the SIU, the order restricts fund administrators from paying out any benefits and prevents the dissipation of those funds while the unit pursues 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 SIU said.
In total, the unit revealed that the Special Tribunal preserved R8 243 373 in assets, which included R6 350 000 in property sale proceeds and R1 893 374 from the GEPF pension. “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 added.
“The SIU has also referred any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority (NPA) for further action,” the unit confirmed.
The Midstream Estate property was listed for sale at R6 350 000 in November 2025.
“Conveyancers and the GEPF are prohibited from paying any proceeds to Nobungwana,” the unit stated.
