NHI tender scandal: SIU probe as Health Department rejects claims of millions diverted

The Health Department has escalated allegations of inflated NHI advertising contracts to the Special Investigating Unit (SIU), Auditor‑General South Africa (AGSA), and the Public Protector, warning that claims of millions diverted from HIV and other programmes must be tested by independent investigators.

The move comes after claims that contracts ballooned from as little as R1 620 to R146 million, allegedly draining funds from HIV/AIDS and other essential programmes – sparking public outrage and comparisons to past corruption scandals in the health sector.

The department said it notes with deep concern the far‑reaching claims made in an article in News24 on 26 September 2026 titled: “People before Profit. How uncapped NHI advert contracts drew millions from critical Health programmes.”

Concern

Health Department spokesperson Foster Mohale said the allegations were misleading and must be tested by independent investigators.

“We welcome the involvement of neutral institutions. This matter cannot be settled through press statements and counter‑statements. We want the truth established beyond doubt,” he said.

Implausible

Mohale dismissed the figures as implausible.

“How in the world can a tender of R1 620 balloon to R146 million? This is ridiculous in the extreme. The State does not even issue tenders for such small amounts. We explained this repeatedly, but the narrative persists,” he added.

Ministers respond

Although Health Minister Dr Aaron Motsoaledi is on sick leave, he and Deputy Minister Dr Joe Phaahla jointly endorsed the call for investigations, saying the allegations unfairly attempt to link them personally to corruption.

Both acknowledged knowing KMTV Media owner Khathu Mamaila for decades due to his journalism career, but denied any improper relationship.

Allegations

The allegations echo concerns raised in past scandals, including the Tembisa Hospital looting, which left the public highly sensitive to corruption claims.

Mohale acknowledged this risk.

“We understand the public is likely to believe these claims. That is why we are not dismissing them – we are asking the SIU, AGSA and Public Protector to investigate thoroughly.”

The department noted it had faced similar allegations before. When the North West Province was placed under administration, a senior official was accused of corruption in a R1.2 billion tender.

The Press Ombud later ordered an apology, and the North Gauteng High Court dismissed a related case with costs.

“With this experience, we have no reason to believe today will be different with this misleading so‑called NHI communication tender,” the department said.

Investigation

Acting Director‑General Nicholas Crisp has already been probing irregular staff appointments and procurement flagged by AGSA and the Public Service Commission. The department believes some individuals under investigation may be attempting “pre‑emptive action” by leaking selective documents.

“We believe some of these so‑called whistleblowers are trying to shield themselves from accountability. That is why independent scrutiny is vital,” Mohale said.

Health communication

Mohale stressed that the contracts were not solely for NHI promotion but covered broader health communication campaigns.

“These adverts are critical to fight HIV/AIDS, TB, malaria, smoking, alcohol abuse, diabetes and cancer. Companies spend billions advertising harmful products. We cannot fold our arms while diseases are being sold to the public. Health communication is not a luxury – it is a necessity,” he explained.

“We will never stop advertising good health because some in the media believe it is a waste of taxpayers’ money. It is far more expensive to sit back and allow people to get sick than to invest in prevention,” he added:

The department insists that health communication campaigns are essential to counter billions spent by industries promoting harmful products, and rejects claims that funds were improperly diverted.

The matter now rests with the SIU, AGSA and Public Protector, whose findings will determine whether the allegations of corruption hold weight or collapse under scrutiny.