The theft charge against suspended National Department of Health (NDoH) DG Dr Sandile Buthelezi has been withdrawn, but he will be back in court again in January because he is still being charged with allegedly defrauding the Global Fund to Fight Aids, TB and Malaria to the tune of R1m, reports News24.
Last week Buthelezi and his co-accused, Health CFO Phineas Mamogale, acting deputy DG of corporate services Malixole Mahlathi, and service provider Nokuzsola Mafunda, appeared in the Specialised Commercial Crime Court, which heard that the first two had made representations on why the charges should be dropped. These were partly successful. The theft charges against both accused were withdrawn, but the representations regarding the fraud charges were dismissed.
Both Buthelezi and Mahlathi will escalate their representations to the National Director of Public Prosecutions. Mamogale’s counsel said they would still consult and consider whether to make representations.
The matter was postponed to January 2027.
Shenanigans alleged by State
The three are accused of using Global Fund money for the irregular appointment of service providers to investigate and chair a disciplinary hearing against Advocate Maile Ngake, the lead implementer of the fund.
News24 reported in September 2023 that Ngake – who had authored an investigative report exposing the North West Department of Health and a R1.2bn tender fraud scandal – was suspended as part of a suspected cover-up.
According to the charge sheet, the Global Fund and the Government of South Africa entered into an agreement wherein the NDOH was the principal recipient of the grant funding.
The investigating officer contended that the R1m disbursed by the fund to the department was intended to provide Covid-19 psychosocial support activities. The fund disbursed a R40m grant to the department in 2021.
However, the state’s version is that the accused paid the money to irregularly-contracted service providers.
Mafunda, the service provider appointed to conduct the investigation, registered her company, Ithani Amen, on 22 August 2023, just nine days before the company was appointed by the NDoH, according to the charge sheet. A day later, she opened a bank account for her newly formed company.
It is the state’s version that Mahlathi had requested a deviation from the normal procurement processes for the appointment of Mafunda as the labour investigator for Ngake’s disciplinary hearing. This request was supposedly approved by Buthelezi, who signed the letter of appointment.
A month later, in September 2023, Mahlathi again requested a deviation from the normal procurement processes for appointing a chairperson for Ngake’s disciplinary enquiry.
After completing an investigation report, Mafunda is said to have invoiced the department for more than R500 000. Mahlathi apparently authorised payment from the Global Fund to Fight Aids, TB and Malaria.
Before the funds were paid in February 2025, the state alleges that Mahlathi had asked that the CFO, Mamogale, approve the payment, but at the same time, the finance department had raised concerns about irregular expenditure on Mafunda’s appointment and said the invoice should be paid by supply chain management.
The state contends that the accused committed fraud because the reasons given to deviate from normal procurement processes in appointing Mafunda were unfounded – namely that she was the only qualified consultant available and that the grant funds could be used for the appointment.
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Health boss and top officials on fraud, theft charges
Health DG probed after R500 000 bribery allegations