- Health department director general Dr Sandile Buthelezi ended the Independent Development Trust deal in August after hospital upgrade projects failed.
- Contractor Powerchoice Group is owed about R31-million for work at Witbank Hospital where the project is 60% done but stopped.
The Department of Health has launched an investigation into hospital upgrade projects that have burnt through millions of rands.
The programme was supposed to fix key hospitals across the country. The projects were managed by the Independent Development Trust (IDT). They were meant to cost more than R1.6-billion.
Now the money is gone, the hospitals are still broken, and nobody knows where it all went wrong.
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In August 2025, health department director general Dr Sandile Buthelezi told the IDT their working agreement was over. He said the department was "dissatisfied with the progress made and the results of projects that have been undertaken".
But the IDT fired back. They say the Health Department failed to give instructions on time, did not transfer money when needed, and did not provide proper oversight, Daily Maverick reported.
Critical hospital projects have stopped completely while the two sides fight.
Buthelezi sent his first letter on 22 August 2025. This was 22 days after IDT boss Tebogo Malaka was suspended. Three weeks later, he cancelled the agreement and announced an investigation.
Buthelezi himself is under the spotlight. He played a central role in the dodgy R836-million oxygen deal. Audit firm PwC investigated and singled him out for pushing the deal through despite red flags.
Buthelezi is also being investigated by the Hawks. They are looking into claims he asked for a R500,000 bribe from construction company Base Major. Hawks spokesperson Brigadier Nomthandazo Mbambo said "the docket in this matter is still with NPA. No one has been formally charged."
Health Department spokesperson Foster Mohale said if Buthelezi is found guilty, "action will be taken".
The hospital programme started in 2022. Buthelezi noted problems with planning, contractors not doing their work, missing plans, and projects not meeting Treasury guidelines. But money kept flowing anyway.
Buthelezi confirmed the department was hiring someone to investigate six hospital projects. Mohale said audit firm Thabi Consulting would do the investigation.
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Director Andile Somana wrote: "The department has reportedly decided not to transfer funds to IDT for the settlement of Powerchoice Group's approved invoices."
Powerchoice said they last got paid in May. In July, Buthelezi told the IDT to cancel their contract "without due process". Powerchoice says it is owed about R31-million for work it completed.
