Health Minister Gives Update on Disciplinary Action Against Top Officials

Why the Officials Were Suspended

Health Minister Aaron Motsoaledi announced that disciplinary proceedings have started against three senior department officials. They were suspended with pay after appearing in court on charges linked to a questionable R1 million contract awarded in 2023.

Who Are the Suspended Officials?

Director‑General Sandile Buthelezi

Earns about R2.6 million per year.

Deputy Director‑General Malixole Percival Mahlati

Earns about R2.1 million per year.

Chief Financial Officer Phineas Phaswa Mamogale

Earns about R1.8 million per year.

What Led to the Suspension?

The three officials were placed on precautionary suspension after their appearance in the Specialised Commercial Crimes Court in Pretoria. They face allegations of fraud and theft involving public funds, specifically the misuse of Global Fund money that did not follow proper procurement procedures.

Legal Status and Next Steps

Each official was granted R10 000 bail and their case has been postponed to June 3. The suspensions began on March 11, as required by law while the disciplinary process unfolds.

How the Disciplinary Process Will Work

For the Director‑General

Because the Director‑General is appointed and can be disciplined only by the President, the procedure will differ slightly from that for lower‑rank officials.

For the Deputy Director‑General and CFO

A neutral, external expert will be appointed to chair the disciplinary committee. The Minister is currently selecting suitable chairpersons for these hearings.

Working with Crime‑Fighting Agencies

The Minister said the department will cooperate closely with the Directorate for Priority Crime Investigation (the Hawks) to investigate the allegations thoroughly.

Steps to Prevent Future Corruption

Acting Director‑General’s Role

Acting Director‑General Nicholas Crisp has been told to:

• Work with the Audit and Risk Committee to fix known and suspected weaknesses.
• Fill vacant posts in Internal Audit, Risk, and Ethics management.
• Continue collaborating with the Auditor General to identify and resolve management issues.

Provincial Health Departments

A coordinated effort is underway to improve governance in provincial health departments, including:

• Writing clear delegations for managers at every level.
• Reviewing clinic committees, hospital boards, and other governance structures.

Other Fraud Risks in the Health Sector

The Minister highlighted that medical scheme fraud—by members, beneficiaries, and service providers—is handled by the Council for Medical Schemes. Procurement and logistics fraud are reported to the Competition Commission, the South African Police Service, health professional councils, and can lead to blacklisting by the Treasury when appropriate.

Conclusion

Minister Motsoaledi’s update shows that the government is taking the allegations seriously, following legal procedures, and working with various oversight bodies to address the case and strengthen controls. While challenges remain, the steps being taken aim to protect public funds and improve trust in the health system.