Businessman Stefan Joel Govindraju is back in court on Tuesday as the criminal case linked to alleged procurement corruption at Tembisa Hospital continues.

The National Prosecuting Authority says Govindraju faces 70 charges, including fraud, theft, money laundering and corruption-related offences. He is appearing before the Johannesburg Specialised Commercial Crimes Court sitting in Palm Ridge.

State alleges major procurement fraud

According to the NPA, Govindraju allegedly used numerous companies to secure procurement contracts from Tembisa Hospital and the Gauteng Department of Health between January 2020 and April 2023.

The State alleges that fronting and cover-quoting practices were used to create the impression that procurement processes were fair and competitive.

The NPA says the alleged conduct caused prejudice of more than R583 million to the Gauteng Department of Health, Tembisa Hospital and National Treasury.

Govindraju was previously granted bail of R200,000. His matter was postponed to 29 September for plea and sentencing proceedings.

The Special Investigating Unit says its investigation identified 75 companies linked to Govindraju which traded with Tembisa Hospital.

According to the SIU, the companies received about R600 million through 1,237 contracts that investigators allege did not comply with procurement rules.

The SIU also identified around R100 million in payments from companies linked to the alleged syndicate to current and former hospital officials. Those payments are suspected to have been kickbacks.

R42.4m in assets secured

The SIU has also secured approximately R42.4 million in cash, properties, pension benefits and investments linked to the broader Tembisa Hospital investigation.

Government said the preservation measures relate to assets connected to alleged bribes paid to officials to help secure procurement deals.

Govindraju has not been convicted. The allegations against him and others remain subject to the court process.