Senior health official ‘steps aside’ after arrest on corruption charges

2026-03-06 - 11:53

A senior Department of Health official has stepped aside from his role as chairperson of the Strategic Dialogue Group (SDG) following his arrest on fraud and theft charges alongside two other top health department officials. Acting deputy director-general Dr Malixole Percy Mahlathi was arrested earlier this week, together with Department of Health director-general Sandile Buthelezi and chief financial officer Phineas Phaswa Mamogale. The trio appeared in the Pretoria Commercial Crimes Court on Monday in connection with fraud and theft of donor money, intended to support South Africa’s fight against HIV, tuberculosis and malaria. While all three potentially face the axe from the health department, Mahlathi has announced that he will step aside from one of his other leadership positions. Stepping aside from SDG role The SDG confirmed on Friday that Mahlathi had voluntarily stepped down from his responsibilities while the legal process unfolds. “[We] note the recent arrest and court appearance of three senior officials from the Department of Health, including our chairperson, Dr Percy Mahlathi,” the organisation said. The group said the decision was taken to protect the integrity of the organisation while the matter is dealt with in court. “These developments have serious implications and an adverse impact on the SDG, considering its principled stance against corruption and crime in all their manifestations,” it said. The SDG added that it “fully upholds the rule of law as a cornerstone of South Africa’s constitutional democracy”. ALSO READ: Mpumalanga strengthens healthcare with nearly 100 new doctors ‘I will demonstrate my innocence’ In a letter seen by The Citizen to the SDG secretary, Mahlathi confirmed his decision to be relieved of his duties while the investigation was ongoing. “I have therefore decided to stand down from my position of chairman of the strategic dialogue group until this saga is over. “My contribution to the growth of the SDG will continue, as will be my commitment to a better public health service,” he wrote. He also stated that the legal process would allow him to prove that he was not guilty of fraud or theft. Fraud and theft allegations According to reports, a fourth suspect, a service provider and her company listed as a juristic person, has not yet been arrested. Hawks spokesperson Colonel Katlego Mogale confirmed the individual remains under investigation. “The company of one of the suspects is also charged as the fifth juristic person, as the monies were paid to the company,” she said. NOW READ: Doctors could be forced to conduct blood transfusion on Jehovah’s Witness teen