An expanding criminal tapestry that drains public health resources has come under intensified scrutiny, as Stefan Govindraju—the so‑called “tender kingpin” within the Tembisa Hospital corruption network—is now facing criminal tax charges from SARS. What was once considered a crooked supply chain operation has ballooned, revealing a shell-company empire that funnelled nearly half a billion rand in illicit earnings.

Recent SIU and Hawks investigations have uncovered widespread tender fraud at Tembisa Hospital, stretching back to 2020. Dr Govindraju emerged as the chief profiteer, controlling over 50 front companies that collectively received roughly R437 million from hospital contracts between 1 January 2020 and 11 October 2022.

The Hawks’ December 2022 probe estimated more than R500 million in irregularly awarded contracts, citing submission of forged documents, cover quoting, and contravention of standard procurement procedures.

Now, SARS has pressed criminal tax charges against Govindraju—signalling a shift from detecting irregular supply chain activity to pursuing financial accountability for undeclared income and tax evasion. The charges reportedly cover years of unreported revenue and dodged tax liabilities tied to his corporate network. This builds on SIU recommendations sent to both the NPA and SARS for enforcement .