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Three senior health officials, including director-general granted bail in R1m fraud case

Simon Majadibodu|Updated

Three top officials from the National Department of Health were granted R10,000 bail each after being arrested in connection with the alleged irregular awarding of more than R1 million to a service provider in 2023.

Image: Supplied/Hawks

The director-general of the National Department of Health is among three senior officials released on R10,000 bail each after appearing in court on charges of fraud and theft involving more than R1 million in public funds.

Dr Malixole Mahlathi, 67, deputy director-general for tertiary health and hospital services and subsequently acting head and deputy director-general for corporate services, Phineas Phaswa Mamogale, 46, chief financial officer, and Dr Sabelo Siyabonga Sandile Buthelezi, 55, director-general, were arrested by the Hawks on Monday morning, March 2, 2026.

They were taken into custody by members of the Hawks’ National Serious Corruption Investigation unit, part of the Directorate for Priority Crime Investigation, after warrants of arrest were executed.

The trio briefly appeared in the Pretoria Specialised Commercial Crimes Court. 

Their case was postponed to June 3, 2026.

It is alleged that in 2023 more than R1 million was unduly awarded to a service provider in contravention of the Public Finance Management Act. 

The investigation has been under way since April 2024.

Gauteng Hawks spokesperson Colonel Katlego Mogale said the three were charged with fraud and theft.

“The company of one of the suspects is also charged as the fifth juristic person, as the monies were paid to the company,” Mogale said.

Three senior National Department of Health officials appeared in the Pretoria Specialised Commercial Crimes Court after their arrest by the Hawks on charges of fraud and theft involving more than R1 million in public funds.

Image: Supplied/Hawks

She said a fourth suspect, the service provider and her company, had yet to be arrested.

Mogale said as part of their bail conditions, Mahlathi and Buthelezi were ordered to surrender their passports. 

She said all three were instructed not to apply for new passports, not to interfere with witnesses and not to return to their workplaces. 

They were also ordered not to commit further offences while on bail and to inform the investigating officer of any travel within South Africa, Mogale added.

Meanwhile, the government said it noted the arrests of the three senior officials in connection with an ongoing investigation into allegations of theft and fraud.

“As the matter is under active investigation by the Directorate for Priority Crime Investigation, no further details can be disclosed at this stage,” acting government spokesperson Nomonde Mnukwa said.

She said the fight against corruption remained a top priority for the government as part of its commitment to building a safer, ethical and corruption-free South Africa.

Mnukwa said the development aligned with the 2026 State of the Nation Address (SONA) by President Cyril Ramaphosa, in which he underscored the need to intensify efforts against organised crime and systemic corruption, identifying them as critical threats to democracy and economic stability.

“The 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,” she added.

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