Three top Health Department officials have been placed on precautionary suspension following their arrest on charges of fraud and theft related to the irregular appointment of service providers.
Health Minister Dr Aaron Motsoaledi suspended Director-General Dr Sandile Buthelezi, Deputy Director-General of Tertiary Health and Hospital Services Dr Malixole Percival Mahlati, and Chief Financial Officer Phineas Phaswa Mamogale after receiving delegations from President Cyril Ramaphosa.
The three officials were arrested by the Hawks on 2 March and appeared before the Specialised Commercial Crimes Court in Pretoria. They face charges of fraud and theft relating to the alleged irregular awarding of contracts to a service provider in 2023, with the department allegedly defrauded of more than R1 million.
Buthelezi faces an additional charge of contravention of the Public Finance Management Act.
Hawks spokesperson Katlego Mogale said the funds were “unduly awarded in contravention of the Public Finance Management Act”. The investigation began in April 2024.
Each official was granted R10 000 bail. The case has been postponed to 3 June.
A fourth suspect, described as a service provider, and her company remain to be arrested. The company has been charged as a juristic person as the money was paid directly to it.
The department said Buthelezi’s suspension will last until his “cases are finalised or until his contract comes to an end, whichever comes first”. Mahlati has been suspended until his cases are finalised or until his contract expires, whichever comes first, while Mamogale’s suspension lasts until his cases are finalised.
The minister has appointed Deputy Director-General for National Health Insurance Prof Nicolas Crisp as acting Director-General for three months. Crisp previously served as acting director-general in September 2021 when Buthelezi was suspended over the Digital Vibes scandal. Buthelezi was later cleared of all charges in that matter and his suspension was lifted in November 2021.
“Minister Motsoaledi would like to allow the law to take its course. All officials affected by the decision have been formally notified of their suspensions,” the department said in a statement.
“He would like to assure the stakeholders and public that the department will continue to function optimally according to its mandate.”
