Motsoaledi Suspends Health Department DG Over Alleged R1m Tender Fraud

Motsoaledi Suspends Health Department DG Over Alleged R1m Tender Fraud

  • Health Minister Aaron Motsoaledi has placed three senior officials in the Department of Health on precautionary suspension over fraud and theft charges totalling more than R1 million
  • The suspended officials, including Director-General Sandile Buthelezi, are accused of irregularly awarding contracts linked to a disciplinary hearing
  • The payments were allegedly made using funds from the Global Fund to Fight AIDS, Tuberculosis and Malaria, which were meant to support training and outbreak response programmes
Health minister
Health Minister Aaron Motsoaledi confirmed the suspensions of three top health officials over alleged tender fraud.Image: Albin Lohr-Jones/ Getty Images
Source: Getty Images

SOUTH AFRICA —Three senior officials in the Department of Health have been placed on precautionary suspension following fraud and theft charges amounting to more than R1 million.

Reports from Eyewitness News indicate that those suspended are Director-General Dr Sandile Buthelezi, Deputy Director-General Dr Malixole Mahlati, and Chief Financial Officer Phaswa Mamogale. Their suspensions will remain in place until their cases are finalised or their contracts come to an end.

Allegations linked to irregular contracts

The charges relate to the alleged irregular awarding of contracts to service providers to investigate and chair a disciplinary hearing against a department employee.

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Earlier this month, the three officials were arrested and charged with two counts of fraud and theft linked to the appointment of companies that were allegedly irregularly contracted for the process.

The funds used to pay the service providers were reportedly sourced from the Global Fund to Fight AIDS, Tuberculosis and Malaria. The money had been allocated to support training programmes and outbreak response initiatives in South Africa.

Acting Director-General appointed

Health Minister Aaron Motsoaledi confirmed the suspensions as part of the department’s response to the allegations.

Department spokesperson Foster Mohale said all affected officials have been formally notified of the decision. In the interim, Deputy Director-General for National Health Insurance Prof Nicholas Crisp has been appointed acting Director-General for a period of three months.

The three officials were released on bail

In earlier reported news, the three senior National Department of Health officials were released on R10,000 bail each after being arrested in Pretoria on 2 March 2026. The officials will be back in court in June. According to the South African Police Service, Dr Sandile Buthelezi, the Department of Health’s director-general, Dr Malixole Mahlathi, the deputy director-general for tertiary health and hospital services, and acting head and deputy director-general for corporate services, and the Chief Financial Officer, Phineas Phaswa Mamogale, are expected to return as they were investigated by the Hawks for allegedly rewarding a tender of over R1 million in 2023.

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Hawks
The three officials are being investigated by the Hawks for allegedly rewarding a tender of over R1 million in 2023. Images: Klaus Vedfelt/ Getty Images and Wikus De Wet/ Getty Images
Source: Getty Images

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Source: Briefly News

Authors:
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Mbalenhle Butale (Current Affairs writer) Mbalenhle Butale is a dedicated journalist with over three years newsroom experience. She has recently worked at Caxton News as a local reporter as well as reporting on science and technology focused news under SAASTA. With a strong background in research, interviewing and storytelling, she produces accurate, balanced and engaging content across print, digital and social platforms.