The National Department of Health has terminated its memorandum of understanding with the Independent Development Trust over a R1.6-billion hospital refurbishment programme plagued by allegations of fraud and mismanagement. Director-general Dr Sandile Buthelezi cited dissatisfaction with project progress, while the IDT blames the department for inadequate oversight. Critical upgrades have stalled, affecting communities and contractors.
In August 2025, Dr Sandile Buthelezi, director-general of the National Department of Health, informed the Independent Development Trust that their partnership had ended due to poor progress on hospital upgrades intended to cost over R1.6 billion. The programme, launched in 2022, aimed to refurbish key facilities but faced issues like non-performing contractors, payments for uncompleted work, and conflicts of interest at sites including Harry Gwala and Tambo Memorial hospitals.
The IDT responded by accusing the health department of failing to provide timely instructions and funding transfers, which they say caused delays and ensured compliance with the Public Finance Management Act. IDT spokesperson Lerato Modisana stated, “Ultimate financial stewardship and accountability for the programme reside exclusively with the NDoH.” Meanwhile, NDoH spokesperson Foster Mohale defended their actions, noting proactive oversight and that any irregularities would appear in the Auditor-General’s report.
Allegations extend to Buthelezi's involvement in an irregular R836-million oxygen procurement process alongside suspended IDT CEO Tebogo Malaka, who faces a disciplinary hearing in February 2026. A PwC investigation highlighted procedural failures, leading to one dismissal and two suspensions at the IDT. Health Minister Dr Aaron Motsoaledi has requested an extension of the probe to NDoH officials.
Additionally, Buthelezi faces a Hawks investigation over an alleged R500,000 bribe solicitation from contractor Base Major for the Tambo Memorial project. No charges have been filed yet, pending National Prosecuting Authority decisions.
Projects have halted, exemplified by Powerchoice Group's orthopaedic unit at Witbank Hospital, now 60% complete but stalled for five months. Contractor Andile Somana wrote to Motsoaledi in November 2025, warning of community unrest and equipment removal due to unpaid R31 million in invoices. The NDoH plans a due diligence probe by Thabi Consulting into six projects, examining procurement and expenditure alignment.
