Motsoaledi suspends health DG, top officials over R1m tender probe

Health minister Aaron Motsoaledi has placed three senior officials in his department on precautionary suspension after they were implicated in an alleged fraud and theft case related to the irregular awarding of a R1m tender in the department.

The department said that director-general Sandile Buthelezi has been placed on precautionary suspension until his case is finalised or until his contract expires, whichever comes first.

The suspension follows Buthelezi’s appearance in the Pretoria specialised commercial crimes court alongside deputy director-general for tertiary health and hospital services, Malixole Mahlathi, and CFO Phineas Phaswa Mamogale, who have both been placed on suspension too.

The department said Motsoaledi would like to allow the law to take its course.

“All officials affected by the decision have been formally notified of their suspensions,” he said.

In the meantime, the minister has appointed Nicolas Crisp, the deputy director-general responsible for National Health Insurance, as acting director-general for a period of three months.

“Motsoaledi would like to assure stakeholders and the public that the department will continue to function optimally according to its mandate,” the department said.

The Hawks previously reported that the three appeared in court on Monday following an investigation that began in April 2024.

“It’s alleged that in 2023 [more than] R1m was unduly awarded to a service provider in contravention of the Public Finance Management Act. The company of one of the suspects is also charged as the fifth juristic person, as the monies were paid to the company,” the Hawks said.

The three accused were each granted R10,000 bail, and the case was postponed to June 3.

The Hawks also said that a fourth suspect, who is a service provider, and her company were yet to be arrested.

Buthelezi was previously placed on precautionary suspension in 2021 during an investigation by the Special Investigating Unit into the Digital Vibes communications contract scandal that engulfed the health department.

A disciplinary inquiry later cleared him of the charges, and his suspension was lifted.

The scandal ultimately led to the resignation of former health minister Zweli Mkhize.

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