Farmers Lives Matter SA

Senior Health Department Officials Face Fraud and Theft Charges Over R1 Million Global Fund Misuse

Three senior officials from the National Department of Health appeared in the Pretoria Commercial Crimes Court on charges of fraud and theft involving more than R1 million from the Global Fund to Fight AIDS, Tuberculosis and Malaria.

Director-General Dr. Sandile Buthelezi, Chief Financial Officer Phineas Mamogale, and acting Deputy Director-General Malixole Mahlathi were arrested and granted bail of R10,000 each. They have been barred from accessing their offices pending further proceedings.

The accusations center on the alleged diversion of funds intended for pandemic relief and health programs. Prosecutors allege the officials irregularly appointed service providers to handle internal disciplinary matters within the department, misusing Global Fund resources to pay for these services. The case involves two counts of fraud and theft, with Buthelezi facing an additional charge related to contravening the Public Finance Management Act.

Health Minister Dr. Aaron Motsoaledi expressed shock at the developments, stating he was taken by complete surprise and only learned of the arrests when they occurred. “I was not aware of all these things,” he said, adding that he is still gathering details on the precise source of the funds involved—whether from the Global Fund or HIV/AIDS allocations.

Motsoaledi emphasized that corruption is unacceptable regardless of the amount. “Whether it’s a million rand or one rand, corruption is corruption and it’s unacceptable,” he declared. He stressed that procurement systems in government departments follow Treasury regulations and the Public Finance Management Act, involving bid specification, evaluation, and adjudication committees, with final approval by the Director-General.

He noted that systems are only as effective as the people operating them, pointing out the irony that the CFO chairs the bid adjudication committee and the DG provides final sign-off. Motsoaledi explained that ministers are instructed not to interfere in tenders, maintaining an arm’s-length approach, yet political heads are often held accountable when officials bypass processes.

Addressing potential improvements, Motsoaledi reiterated that procurement rules are standardized across government, supported by internal audit committees and Auditor-General advice. While technology could enhance controls, he maintained that deliberate wrongdoing by individuals—ignoring established systems for personal gain—remains the core issue, as seen in past scandals.

He advocated removing dishonest individuals from such roles, acknowledging the challenge of identifying them beforehand. Motsoaledi mentioned personally posing questions during interviews to gauge candidates’ stance on refusing improper instructions, though true character often emerges only on the job. He called for strengthening state security vetting processes, which sometimes lag behind appointments.

The arrests come amid broader scrutiny of the department’s procurement practices. The case has been postponed for further investigation.

In a separate segment of the discussion, Motsoaledi paid tribute to anti-apartheid veteran Mosiuoa “Terror” Lekota, who passed away at age 77 after a long illness. Lekota, a former Robben Island prisoner, Congress of the People (COPE) co-founder, and ex-Defense Minister, had a significant impact on Motsoaledi’s early activism.

Motsoaledi recalled working closely with Lekota after his 1982 release from prison, when Lekota addressed students at the University of Natal Medical School. As communication secretary for the United Democratic Front (UDF) in 1983, Lekota visited campuses and delivered charismatic speeches. Motsoaledi later served under him when Lekota chaired the UDF nationally for two terms.

Despite later political differences—Lekota left the ANC to form COPE—Motsoaledi described him as remaining “one of us” in spirit, rooted in black consciousness and non-racial democratic values. He extended condolences to Lekota’s family, the Cope party, and South Africa.

 

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