The Special Investigating Unit (SIU) has obtained a preservation order from the Special Tribunal to freeze assets valued at approximately R532 million linked to businessman Thapelo Samuel Buthelezi. The order targets properties connected to Bhutulezi EMS, a company that received substantial contracts from the Free State Department of Health.
SIU spokesperson Selby Makgotho confirmed that the legal action stems from a 2019 proclamation granting the unit wide-ranging investigative powers to probe allegations of irregularities in the awarding of multi-million rand contracts. The investigation found that the procurement processes were not properly followed and that serious violations occurred during the allocation of contracts to Bhutulezi EMS and associated entities.
“The awarding of the contracts had not been done properly, had not followed procurement procedures and there were serious violations in relation to that,” Makgotho stated. Based on the findings and the gravity of the irregularities, the SIU approached the Special Tribunal to seize and preserve the assets.
The preservation order covers two confirmed properties—one located in Rustenburg and another in the Free State—with additional assets currently under investigation. Under the terms of the order, the properties cannot be sold, transferred, leased, donated, or encumbered in any manner pending the final enforcement of the preservation order. However, there is no legal provision preventing Buthelezi from continuing to reside in the properties during this period.
The contracts under scrutiny total approximately R532 million, awarded in stages by the Free State Health Department. Makgotho noted that the investigation focused primarily on procedural compliance rather than service delivery outcomes. “It was not clear as to actually what was done because we looked at the procedural aspects in terms of the awarding of the contract,” he explained. “The decision-making process was questionable because the various requirements were not complied with or were not met relating to the procurement or the allocation thereof.”
The SIU emphasized that the preservation order serves as a protective measure to ensure assets remain available should recovery of public funds become necessary. “If the properties have to be sold in the ultimate for the monies to be paid back, that will also be taken into consideration,” Makgotho added.
The investigation extends beyond Buthelezi and his companies. Given the financial magnitude and complexity of the tender process, the SIU is also examining the roles of officials involved in the evaluation, adjudication, and final approval of the contracts. “This obviously could not have been done alone by a person,” Makgotho noted, highlighting that systemic failures in supply chain management procedures are central to the probe.
As part of its mandate, the SIU has submitted systemic recommendations to the Free State Department of Health and the provincial government. Makgotho confirmed that consequence management steps are being pursued against individuals implicated in the irregular awarding of contracts.
The preservation order remains in effect pending further legal proceedings, as the SIU continues its investigation into procurement irregularities within the provincial health sector.
