The arrest of the National Department of Health’s director-general on corruption charges demonstrates that the National Health Insurance scheme (NHI) cannot work in South Africa, the Democratic Alliance said on Tuesday.
Dr Sabelo Siyabonga Sandile Buthelezi (55), along with two other senior health department officials, appeared in the Pretoria Specialised Commercial Crimes Court on 2 March on charges of fraud and theft involving more than R1 million.
The DA said whilst it welcomed the arrest by the Hawks, it is calling on Health Minister Dr Aaron Motsoaledi to place Dr Buthelezi on precautionary suspension while the investigation continues.
“The decisive law enforcement action yesterday does not free Minister of Health Dr Aaron Motsoaledi from his obligation to place Dr Buthelezi on precautionary suspension whilst the investigation continues, to protect the credibility of the department and maintain public trust in the process,” said Michelle Clarke, DA spokesperson on health.
Clarke rejected the minister’s statement that he is “in the dark about the arrest”, saying a suspension is the least he can and should do.
The department of health stated: “At this juncture, the Minister is still in the dark about circumstances surrounding the arrest of the three. As soon as the Minister has been fully briefed about this matter, he will issue a statement.”
The DA said the NHI would become “the biggest pot of corruption feeding in decades” under the current department.
Dr Buthelezi was arrested alongside Dr Malixole Mahlathi (67), deputy director-general for tertiary health and hospital services and subsequently acting head and deputy director-general for corporate services, and Mr Phineas Phaswa Mamogale (46), chief financial officer. The arrests were conducted by members of the Hawks’ National Serious Corruption Investigation.
The charges relate to the alleged improper awarding of more than R1 million to a service provider in 2023 in contravention of the Public Finance Management Act. The company of one of the suspects has also been charged as the fifth juristic person as the funds were paid to that company.
In a recent response to a DA parliamentary question, Minister Dean Macpherson confirmed that a forensic investigation into the Bulkeng oxygen plant tender will also examine the role of health department officials, including Dr Buthelezi, who allegedly approved the project despite concerns being raised about missing regulatory and compliance requirements.
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All three accused were granted R10 000 bail each. The matter was postponed to 3 June 2026.
A fourth suspect, identified as the service provider, and her company are yet to be arrested.
Dr Mahlathi and Dr Buthelezi were ordered to surrender their passports. All three accused are prohibited from applying for new passports, interfering with witnesses, returning to their workplace, or committing other offences while on bail. They must also inform the investigating officer of any travel within South Africa’s borders.
“Corruption in the health sector has real consequences for patients and healthcare workers. When public money is misused, hospitals suffer, services are delayed, and ordinary South Africans are left paying the price with their very lives,” Clarke said.
