Motsoaledi suspends officials over fraud charges

Buthelezi’s contract runs until the end of May, while Percy Mahlati’s ends in October

Three senior officials from the national health department, Percy Mahlati, Phaswa Mamogale, and director-general Sandile Buthelezi, appeared in the Pretoria specialised commercial crimes court on March 2 2026. (Herman Moloi)

Health minister Aaron Motsoaledi has placed director-general Sandile Buthelezi and two senior officials on precautionary suspension after their arrest for alleged fraud and theft last week.

In a brief statement on Wednesday, the minister said deputy director-general for National Health Insurance (NHI) Nicholas Crisp has been appointed as acting director-general for three months.

Buthelezi; the department’s deputy director-general for hospital services, Percy Mahlati; and CFO Phaswa Mamogale are under investigation for allegedly diverting money from the Global Fund to Fight Aids, TB and Malaria to pay for an internal disciplinary inquiry. They were arrested on March 2 and released on R10,000 bail each. They are expected to appear in the specialised commercial crimes court in Pretoria on June 3.

Buthelezi and Mahlati have been placed on precautionary suspension until the finalisation of their cases or the end of their contracts, whichever comes first, said the minister. Buthelezi’s contract runs until the end of May, while Mahlati’s ends in October, according to the health department’s spokesperson, Foster Mohale.

Mamogale has been placed on precautionary suspension until the finalisation of his case, said the minister.

The disciplinary inquiry was established to target a whistle-blower, according to a report by News24 citing internal health department documents. Motsoaledi denied this was the case, telling MPs no whistle-blower would be victimised on his watch.

The service provider at the centre of the allegations against Buthelezi and the officials, Nokuzola Mafunda, was arrested on March 5. She has also been charged with fraud and theft and released on R10,000 bail.

The DA’s health spokesperson, Michele Clark, welcomed news of the suspensions. The party will put pressure on the department to ensure the matter is also probed by the Special Investigating Unit, she said.


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