Johannesburg, South Africa – The scandalous saga surrounding the Tembisa Hospital has taken a dramatic turn, with former Chief Financial Officer (CFO) Lerato Madyo, now reportedly using the name Daniella Molapo, exiting the Gauteng Department of Health (GDoH) amidst allegations of a "hush money" settlement. This development has reignited public outrage over the alleged looting of more than R2.3 billion from the hospital, further deepening the mystery and suspicion surrounding the murder of whistleblower Babita Deokaran.
Madyo, who was a central figure implicated in the massive corruption, reportedly received a lucrative settlement package to leave the department, rather than facing the full force of disciplinary action. This revelation comes from Jack Bloom, the Democratic Alliance (DA) Shadow MEC for Health in Gauteng, who has been relentlessly pursuing accountability in this case. Bloom did not mince words, stating, "The department has lied and covered up a hush money payoff to the person who disregarded Babita’s appeal to investigate suspicious Tembisa Hospital contracts worth R850m (which went up to R2.3bn)." This explosive claim suggests a deliberate attempt to silence Madyo and bury the truth about the extent of the corruption.
The heart of the scandal lies in Madyo’s alleged failure to act on critical warnings from Babita Deokaran, the chief director of financial accounting, who courageously flagged over R850 million in suspicious payments at Tembisa Hospital before her assassination in 2021. Deokaran’s murder underscored the deadly consequences faced by those who dare to expose corruption in South Africa. While Madyo briefly froze some suspicious payments at Deokaran’s request, she allegedly released them shortly after the whistleblower’s death, raising serious questions about her complicity.
Further compounding the suspicion, crucial evidence, including Madyo’s cellphone containing WhatsApp conversations with Deokaran from the month of the murder, was reported stolen before it could be analysed by authorities. This convenient disappearance of evidence has fuelled public cynicism and strengthened the belief that powerful forces are at play, attempting to obstruct justice and protect those involved in the looting.
According to Bloom, Madyo was paid R3 million while suspended with pay for two years as the department deliberately dragged out her disciplinary enquiry on 13 misconduct charges. These charges included neglecting her fiduciary duties, failing to prevent fruitless and wasteful expenditure, and ignoring discrepancies in contracts, including the use of forged documents by shelf companies. Instead of concluding this enquiry, which could have implicated others and led to criminal charges, Madyo was allowed to leave with her pension and an undisclosed settlement amount. The DA claims this settlement agreement may be unlawful and contravenes the Public Finance Management Act (PFMA), demanding that the agreement be made public.
The Special Investigating Unit (SIU) report, released in September 2025, confirmed that over R2 billion was siphoned through fraudulent activities and corruption at Tembisa Hospital. The SIU identified three coordinated syndicates – the Maumela syndicate, the Mazibuko syndicate, and Syndicate X – as being responsible for the losses. The report detailed approximately 4,500 purchase orders involving 207 service providers, where money was paid out but no goods were ever delivered. Corrupt payments to officials and employees totalled roughly R122 million, with at least 15 current and former officials implicated.
The Gauteng Premier Panyaza Lesufi’s office has attempted to distance itself from the settlement, with spokesperson Sizwe Pamla stating that the Premier declined to grant retrospective approval for the agreement, citing a lack of prior consultation. An independent legal firm has since been appointed to investigate the matter. However, the DA remains unconvinced, pointing out that the settlement was signed off by the Head of Department, Lesiba Malotana, who is currently suspended after failing his lifestyle audit.
This scandal is a potent blend of human drama, political tension, and economic impact. It highlights the devastating consequences of corruption on public services, particularly healthcare, and the bravery of individuals like Babita Deokaran who paid the ultimate price for speaking truth to power. The ongoing revelations continue to fuel public anger and calls for justice, making it a story that resonates deeply with the national consciousness and demands continued scrutiny.
Follow Us on Twitter
