Three senior Health Department officials suspended over fraud allegations

Wednesday, March 11, 2026

Health Minister, Dr Aaron Motsoaledi, has placed the department’s Director-General, Dr Sandile Buthelezi, on precautionary suspension.

Buthelezi – along with Deputy Director General of Tertiary Health and Hospital Services, Dr Malixole Percival Mahlati and Chief Financial Officer Phineas Phaswa Mamogale – was arrested and appeared before the Specialised Commercial Crimes Court in Pretoria last week.

They face charges of fraud and theft related to the allegedly irregular appointment of two service providers at the department.

Buthelezi faces an additional charge of contravention of the Public Finance Management Act (PFMA).

“The Minister [suspended Buthelezi] after receiving delegations from the President.

“The Minister has also placed the Deputy Director General for Hospitals Services, Tertiary Health Services and Human Resource Development, Dr Percy Mahlati, on precautionary suspension until his cases are finalised, or until the expiry of his contract, whichever comes first.

“The Chief Financial Officer, Phaswa Mamogale, has also been placed on precautionary suspension until his cases are finalised,” the department said in a statement.

Buthelezi’s suspension also lasts until his “cases are finalised or until his contract comes to an end, whichever comes first”.

“Minister Motsoaledi would like to allow the law to take its course. All officials affected by the decision have been formally notified of their suspensions. 

“In the meantime, the Minister has appointed the Deputy Director General for National Health Insurance, Prof Nicolas Crisp as acting Director General for a period of three months. 

“Minister Motsoaledi would like to assure the stakeholders and public that the department will continue to function optimally according to its mandate,” the statement concluded. – SAnews.gov.za