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Calls for suspension after Health DG, two other officials arrested in R1m fraud case

Siphesihle Buthelezi|Published

Three senior Department of Health officials have been arrested by the Hawks in a R1 million fraud case.

Image: File

The arrest of National Department of Health (NDoH) Director-General Dr Sandile Buthelezi and two senior officials has sparked sharp criticism from opposition parties, who say the developments expose deep-rooted corruption and threaten public confidence in South Africa’s health system.

Dr Buthelezi, Deputy Director-General Dr Malixole Mahlathi, and Chief Financial Officer Mr Phineas Phaswa Mamogale were arrested by the Hawks in connection with allegations of more than R1 million in unauthorised expenditure during the 2023–2024 financial year. All three appeared in court and were released on bail of R10 000 each. The case has been postponed to June 3.

The uMkhonto weSizwe Party (MK Party) said the arrests confirm what it has long described as a “corruption and governance crisis” within the NDoH and provincial health departments.

“These arrests, while overdue, are only the tip of the iceberg,” the party said in a statement, adding that the alleged mismanagement represents a direct violation of the Public Finance Management Act (PFMA) and a serious breach of public trust.

The MK Party stated it would urge the Special Investigating Unit (SIU) to investigate all NDoH procurement processes dating back to 2020, particularly focusing on pandemic-related contracts and vaccine tenders.

It also plans to request that the Public Protector, Auditor-General, and National Treasury conduct concurrent investigations, while calling on the Minister of Health to institute disciplinary action and Parliament’s Portfolio Committee on Health to hold oversight hearings into governance failures.

The Freedom Front Plus (VF Plus) welcomed the arrests, noting the Department of Health has long been plagued by corruption scandals.

“The Digital Vibes tender scandal, the Tembisa Hospital looting, and repeated cases of mismanagement show the urgent need for accountability,” said Philip van Staden, the party’s chief spokesperson on Health.

The VF Plus said it hopes the criminal justice system will ensure those found guilty are duly punished.

The Democratic Alliance (DA) said the arrest of the most senior Health Department official demonstrates that the National Health Insurance (NHI) scheme “will not work” under a department riddled with corruption.

“The arrest of Dr Buthelezi shows the NHI would become the biggest pot of corruption in decades,” said DA spokesperson on Health Michelle Clarke. She also called on Minister of Health Dr Aaron Motsoaledi to immediately place Dr Buthelezi on precautionary suspension.

Clarke criticised the Minister’s statement that he was “in the dark” about the arrest, saying, “He is the responsible political head, and his DG has been arrested by the Hawks. A suspension is the least he can and should do.”

The DA also linked the arrest to concerns about the Bulkeng oxygen plant tender, noting that a forensic investigation will examine whether Health Department officials approved the project despite regulatory and compliance issues.

“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 pay with their very lives,” Clarke said.

Health Minister Dr Aaron Motsoaledi said he had noted the arrest and court appearance of the three officials.

“At this juncture, the Minister is still in the dark about circumstances surrounding the arrest of the three,” he said, adding that he would issue a further statement once fully briefed, but emphasising that “whatever the circumstances, the law must take its course.”

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