The Director-General of the South African Department of Health, Dr Sandile Buthelezi, has been placed on precautionary suspension following his arrest on charges of fraud and theft, according to a statement from the health ministry. Buthelezi, along with his two co-accused, Deputy Director-General for Hospital Services, Tertiary Health Services and Human Resource Development, Dr Percy Mahlati, and the department’s chief financial officer, Phaswa Mamogale, are accused of stealing over R1 million from the Global Fund to Fight Aids, Tuberculosis and Malaria.
Background to the Allegations
The allegations against the three officials stem from the alleged irregular appointment of service providers to investigate and chair a disciplinary hearing of an employee, advocate Maile Ngake, the lead implementor of the fund. The State contends that Buthelezi and his co-accused used the funds to arrange the alleged irregular appointments.
One of the service providers appointed to conduct the investigation for the disciplinary hearing, Nokuzola Mafunda, had registered her company, Ithani Amen, on 22 August 2023, just nine days before the department appointed the company. A day after her appointment, the State alleges that Mafunda opened a bank account for her newly formed company.
Procurement Process Irregularities
It is the State’s version that Mahlathi requested a deviation from the normal procurement processes for the appointment of Mafunda as the labour investigator. Buthelezi supposedly approved the request and signed the letter of appointment. The State further alleges that Mafunda had also been arrested and charged with fraud, after allegedly lying about her registration on the Central Supplier Database and providing the wrong business address.
The following are some key points regarding the allegations:
- Buthelezi, Mahlati, and Mamogale are accused of stealing over R1 million from the Global Fund to Fight Aids, Tuberculosis and Malaria.
- The allegations stem from the alleged irregular appointment of service providers to investigate and chair a disciplinary hearing.
- Mafunda, one of the service providers, had registered her company just nine days before the department appointed the company.
In the meantime, Health Minister Aaron Motsoaledi has appointed Deputy Director-General for National Health Insurance, Nicolas Crisp, to act as the director-general for the next three months.
