Head of national health department and top officials arrested on R1m fraud, theft charges

In the latest chapter of turmoil within the National Department of Health (NDoH), three senior officials were arrested on Monday, 2 March, on charges of fraud and theft involving more than R1-million.

Director-General Sandile Buthelezi, Chief Financial Officer Phineas Phaswa Mamogale, and acting Deputy Director-General Malixole Mahlathi appeared in the Pretoria Commercial Crimes Court and were released on bail of R10,000 each.

They are all facing two counts of fraud and theft, while Buthelezi faces an additional charge of contravening the Public Finance Management Act.

According to the National Prosecuting Authority, the case relates to the alleged irregular appointment of two service providers and the use of funds from the Global Fund to pay them.

“It is alleged that between 30 August 2023 and 28 September 2023, the three accused acted in common purpose and irregularly appointed two service providers, Ithani Amen (Pty) Ltd and N Mbileni J Tohlang-Nkopane Inc, in a labour-related matter,” said NPA regional spokesperson Lumka Mahanjana.

“Ithani Amen was appointed as an independent investigator and N Mbileni J Tohlang-Nkopane as chairperson for a disciplinary hearing held against the suspended chief director of labour relations at the NDoH. Both service providers were paid via the Global Fund, aimed to assist the department in training and relief in outbreaks.”

According to News24, the NDoH trio allegedly illegally used R1-million from a Global Fund project, meant to be allocated towards Covid-19 psychosocial support, to pay the service providers to lead an investigation and chair a disciplinary hearing into the department’s chief director of health sector bargaining, Maile Ngake.

At the time, Ngake had allegedly authored a report alleging a R1.2-billion tender-rigging scandal in North West.

“Both service providers were allegedly paid from funds allocated by the Global Fund, a financing mechanism intended to bolster departmental training initiatives and provide critical support during disease outbreaks.”

Mahanjana said a forensic investigator reported the three to the Hawks, triggering a formal criminal probe by the Hawks’ National Serious Corruption Investigations unit. They were arrested after handing themselves over at the Pretoria Central Police Station on Monday.

While on bail, Buthelezi, Mamogale, and Mahlathi cannot access their work premises until the conclusion of the matter, must relinquish their passports, and inform the investigating officer if they intend to travel outside Gauteng.

Minister ‘in the dark’

Hawks spokesperson Colonel Katlego Mogale said the fourth suspect — the service provider — and her company, listed as a juristic person, had not yet been arrested.

The Ministry of Health confirmed the arrest and court appearance on Monday of three officials from the NDoH.

Ministry spokesperson Sello Lediga said Health Minister Aaron Motsoaledi “is still in the dark about the circumstances surrounding the arrest of the three. As soon as the minister has been fully briefed about this matter, he will issue a statement. For now, all that the minister can say is that whatever the circumstances, the law must take its course.”

Repeated scandals

This is not the first time that Buthelezi has faced scrutiny. In 2021, he was officially suspended pending a disciplinary inquiry into his role in an irregular payment of R150-million to Digital Vibes.

Although the investigation cast a long shadow over senior leadership within the department, the disciplinary inquiry cleared Buthelezi of wrongdoing in November 2021, and his suspension was lifted.

In 2025, amaBhungane reported that the NDoH had launched a sweeping “due diligence investigation” into a series of hospital refurbishment projects that had already consumed millions of rands.

The programme, managed by the Independent Development Trust (IDT) and projected to cost more than R1.6-billion, was intended to fast-track long-overdue upgrades at key public hospitals, but was mired in allegations of procurement irregularities. Buthelezi was reportedly at the centre of the programme.

‘Fighting corruption remains apex priority’

On Monday, government spokesperson William Baloyi said, “As the matter is under active investigation by the Directorate for Priority Crime Investigation (the Hawks), no further details can be disclosed at this stage.

“The fight against corruption remains an apex priority for government as part of its commitment to building a safer, ethical and corruption-free South Africa.

“This development aligns with the 2026 State of the Nation Address by President Cyril Ramaphosa, in which he underscored the need to intensify efforts against organised crime and systemic corruption, identifying these as critical threats to democracy and economic stability.

“Government further emphasises that all individuals are presumed innocent until proven guilty in a court of law and urges the public to allow the investigative and judicial processes to proceed without interference.” DM