Assets valued at R532 million connected to businessman Thapelo Samuel Buthelezi have been frozen following a preservation order granted by the Special Tribunal. The Special Investigating Unit (SIU) confirmed the legal action targets properties tied to Bhutulezi EMS, a company that secured multiple contracts from the Free State Department of Health.
SIU spokesperson Selby Makgotho explained that the move follows investigations initiated under a 2019 proclamation, which empowered the unit to examine allegations of misconduct in the awarding of high-value health sector contracts. The probe revealed that procurement protocols were bypassed and significant procedural breaches occurred during the allocation of tenders to Bhutulezi EMS and related 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 said. Based on these findings, the SIU sought and obtained the preservation order to secure the assets pending final resolution.
The order applies to two verified properties—one in Rustenburg and another within the Free State—with additional assets still under review. The tribunal’s ruling prohibits the sale, transfer, leasing, donation, or any form of encumbrance of these assets while the preservation order remains active. However, Makgotho clarified that no legal restriction prevents Buthelezi from continuing to occupy the residences during this period.
The contracts under investigation, totaling approximately R532 million, were awarded incrementally by the provincial health department. Makgotho emphasized that the SIU’s inquiry centered on compliance with procurement regulations rather than the quality of services rendered. “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 noted. “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 preservation measure aims to safeguard public funds by ensuring assets remain accessible should restitution 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 scope of the investigation extends beyond Buthelezi. Given the scale and complexity of the tender awards, the SIU is also scrutinizing officials responsible for the evaluation, adjudication, and final approval of the contracts. “This obviously could not have been done alone by a person,” Makgotho stated, underscoring that lapses in supply chain governance are a focal point of the probe.
As part of its mandate, the SIU has forwarded systemic recommendations to the Free State Department of Health and the provincial administration. Makgotho confirmed that consequence management processes are underway to hold accountable those implicated in the irregular tender awards.
The preservation order remains enforceable as investigations continue into procurement practices within the Free State’s health sector.
