Johannesburg | 16 October 2025
The Democratic Alliance (DA) in Gauteng has formally laid criminal charges against Ms. Lerato Madyo, the former Chief Financial Officer (CFO) of the Gauteng Department of Health, for her alleged role in the massive corruption scandal at Tembisa Hospital—and for her inaction following the warning of slain whistleblower Babita Deokaran.
The charges were filed on Wednesday at Johannesburg Central Police Station by Dr. Jack Bloom MPL, the DA’s Shadow MEC for Health. The move marks a new phase in the DA’s long campaign to hold those responsible for corruption and cover-ups in the provincial health department to account.
Whistleblower Ignored, Murder Followed
In the weeks before her assassination in August 2021, Babita Deokaran, a senior health department official, alerted Madyo to suspicious transactions totalling R850 million at Tembisa Hospital. In one of her final messages, Babita warned:
“Morning CFO, I am just worried that the guys in Tembisa are going to realise we are onto something. Our lives could be in danger.”
While Madyo initially froze R104 million in questionable payments, she later reversed that decision, allowing the funds to flow to companies linked to what investigators have since identified as a network of fake suppliers.
Instead of ordering the full forensic investigation that Babita recommended, Madyo commissioned only a limited internal audit, the findings of which were suppressed.
“She failed to act on clear evidence of corruption, and that failure may have cost Babita Deokaran her life,” said Dr. Bloom. “This is about justice for Babita, and accountability for those who turned a blind eye to theft and murder.”
Years of Delay, No Accountability
Despite facing 13 counts of misconduct, Madyo’s disciplinary process was deliberately delayed for nearly two years by the department. She was allowed to resign before a verdict was delivered, walking away with her full pension and approximately R3 million in payments made while she was suspended.
The DA now accuses her of being a key suspect among those who could have tipped off the masterminds behind Babita’s assassination.
Madyo has reportedly changed her name to Daniella Molapo since leaving the department.
Charges Filed Under Multiple Laws
The DA’s charge sheet is extensive, invoking several key legislative frameworks, including the Prevention and Combating of Corrupt Activities Act (PRECCA), the Criminal Procedure Act, and the Public Finance Management Act (PFMA).
Key alleged violations include:
- Failure to report corruption or fraud exceeding R100,000 as required under Section 34 of PRECCA.
- Conspiracy to commit fraud under Section 18 of the Criminal Procedure Act.
- Gross negligence and misconduct under multiple provisions of the PFMA for failing to maintain transparent financial management systems, leading to fruitless, wasteful, and irregular expenditure.
“The scale of theft at Tembisa Hospital exceeds R2 billion,” Bloom said. “We are determined to ensure that the ringleaders, their enablers, and those who tried to cover it up face criminal prosecution.”
A Fight for Justice and Reform
The DA has repeatedly criticised the Gauteng Department of Health for failing to protect whistleblowers and for its slow pace in implementing anti-corruption measures.
The party says this case should send a strong message that corruption in public health institutions—especially when it costs lives—will not be tolerated.
“Justice delayed is justice denied. We will not rest until every person responsible for the looting of public funds and Babita’s murder is behind bars,” Bloom affirmed.
The South African Police Service (SAPS) has confirmed receipt of the case. An investigation is expected to begin immediately.
Background: The Tembisa Hospital Scandal
The Tembisa Hospital saga has become a symbol of systemic rot in public health procurement. Investigations have uncovered how fake companies and inflated tenders drained millions meant for patient care into private pockets.
Deokaran’s murder outside her home in 2021 shocked the nation and exposed how deeply corruption had infiltrated state systems. Despite multiple reports and forensic leads, no senior officials have been held criminally accountable—until now.
Closing the Circle
By filing these charges, the DA hopes to close the impunity gap that has allowed corruption to thrive unchecked within the health department.
The party insists that accountability for Babita Deokaran’s murder and the billions stolen from the Tembisa Hospital network will define whether South Africa truly upholds the rule of law.
“This is about honouring Babita’s courage,” Bloom concluded. “She gave her life trying to protect public funds. The least we can do is ensure her killers—and those who enabled them—face justice.