Sefako Makgatho University Corruption Scandal: Vice-Chancellor Faces Court Over Alleged R36 Million Tender Fraud

Background on Sefako Makgatho Health Sciences University

Sefako Makgatho Health Sciences University (SMU), located in Ga-Rankuwa, Pretoria, Gauteng, is a specialized institution dedicated to health sciences education and research in South Africa. Formerly known as MEDUNSA (Medical University of South Africa), it was established to address healthcare needs in underserved communities, particularly following the apartheid era. SMU offers undergraduate and postgraduate programs in medicine, nursing, pharmacy, dentistry, and allied health fields, serving thousands of students annually.

The university plays a critical role in training healthcare professionals for the public sector, with a focus on equity and access. However, like many South African universities, SMU has faced governance challenges over the years, including past allegations against previous vice-chancellors. These issues highlight broader systemic vulnerabilities in higher education procurement and leadership accountability.

Current leadership under Vice-Chancellor Professor Tandi Matsha-Erasmus has been credited with advancements in research partnerships but is now at the center of controversy. Understanding the institution's context is essential to grasping the implications of the unfolding scandal.

The Spark of the R36 Million Tender Allegations

The controversy erupted in late 2025 when whistleblowers and anonymous procurement committee members accused SMU's leadership of manipulating a R36 million (approximately $2 million USD) tender for student transport services. The tender aimed to provide reliable bus services for students commuting to and from campus, a vital need given the university's location and large student body.

Allegations claim that Vice-Chancellor Tandi Matsha-Erasmus and her inner circle, including senior lieutenants, interfered in the bidding process. Preferred service providers, described as underperforming, were allegedly favored over higher-scoring competitors. This included overriding evaluations and pressuring committee members, leading to fears of retaliation among staff.

The tender process, governed by South Africa's Public Finance Management Act (PFMA) and university procurement policies, requires transparency, competitiveness, and value for money. Deviations reportedly included subjective scoring adjustments and exclusion of better bids, sparking outrage.

Key Players and Their Alleged Roles

At the forefront is Professor Tandi Matsha-Erasmus, SMU's Vice-Chancellor since her appointment amid prior governance transitions. Critics allege she directed the procurement committee to favor specific companies linked to her associates.

• Vice-Chancellor Tandi Matsha-Erasmus: Accused of overall orchestration and interference.
• Procurement Committee Members: Anonymous sources claim pressure to alter scores; some resigned in protest.
• Council Chairperson: Implicated in related R600 million infrastructure tender issues.
• Service Providers: Companies rejected by student bodies like the GSA for subpar buses.

These claims paint a picture of a tightly knit group allegedly prioritizing connections over merit, a pattern seen in other South African public sector tenders.

University's Internal Response and Whitewash Claims

SMU initiated an internal investigation, but whistleblowers dismissed it as a self-audit, accusing the university of "grading its own homework." The report allegedly cleared leadership despite evidence of irregularities, such as rejected buses by the Gauteng Student Association (GSA).

In statements, university spokespersons emphasized commitment to governance but provided limited details. Calls have mounted for an independent probe by the Hawks (Directorate for Priority Crime Investigation), South Africa's elite unit handling complex corruption cases.

Court Proceedings: Vice-Chancellor Under Mounting Pressure

By January 31, 2026, the scandal reached the courts, with legal action initiated over the tender manipulations. Anonymous committee members testified to systematic rigging, citing fears of victimization. No formal charges against the VC have been confirmed as of early 2026, but the case underscores escalating scrutiny.

Court documents reportedly detail step-by-step deviations: initial bid evaluations, score tampering, and contract awards. This marks a pivotal shift from allegations to litigation, potentially setting precedents for university accountability.

Broader Corruption Context in South African Higher Education

SMU's issues mirror a national crisis in higher education. In 2025-2026, scandals rocked institutions like NSFAS (with billions in fraud) and UNISA (corruption and abuse claims). Statistics from the Auditor-General reveal irregular expenditure exceeding R20 billion across public entities, including universities, often tied to tenders.

Factors include weak internal controls, political interference, and cadre deployment. A 2026 study on white-collar crime in SA higher ed highlights procurement as the epicenter, with 25 ongoing cases involving fraud and bribery.

• NSFAS: R15 billion+ lost to ghost students and kickbacks.
• UNISA: Leadership probed for fraud amid operational chaos.
• General trend: 21 Hawks cases on procurement fraud in 2025.

For professionals navigating this landscape, resources like higher education career advice can offer guidance on ethical practices.

Impacts on Students, Staff, and Public Trust

Students suffer most: unreliable transport disrupts attendance, exacerbating dropout rates already high at 30-40% in SA health sciences programs. Staff morale plummets amid fear of reprisals, stifling whistleblowing.

Public trust erodes, with surveys showing 60% of South Africans doubting university governance. Funding cuts loom, as government allocates based on clean audits. Long-term, this deters top talent from academia.

Stakeholder Perspectives and Expert Opinions

Student unions like GSA demand VC suspension, labeling buses "unroadworthy." EFF and DA politicians call for ministerial intervention by Blade Nzimande.News24 coverage quotes experts: "Tender rigging undermines transformation goals."

Governance specialists advocate digital procurement platforms to curb human interference. University councils stress due process, but critics see protectionism.

Potential Solutions and Reforms

To combat this, SA higher ed needs:

• Independent forensic audits for all tenders over R10m.
• Whistleblower protections via PRECCA enhancements.
• AI-driven bid evaluations for transparency.
• Mandatory ethics training for leaders.

Minister Nzimande could impose administratorships, as in past cases. Aspiring academics should prioritize institutions with strong ethics; explore Rate My Professor for insights or higher ed jobs at compliant universities.

Future Outlook and Lessons for Higher Education

If resolved transparently, this could catalyze reforms, bolstering SA's world-class health sciences output. Unaddressed, it risks escalation to national probes. Watch for Hawks updates and court rulings.

For career navigators, this underscores due diligence. Check university jobs, career advice, and professor ratings. Post a vacancy at AcademicJobs.com to attract ethical talent.

Photo by Rana Shehryar on Unsplash