Former Gauteng health department CFO Lerato Madyo was allegedly not only paid a R3m settlement by the department, but was also approached by whistleblower Babita Deokaran, who feared for her life after flagging an amount of R104m.
DA Gauteng health spokesperson Jack Bloom said he had approached the department, which initially stated that Madyo had resigned in August 2024. However, later in a written response to legislative questions, Gauteng health MEC Nomantu Nkomo-Ralehoko said Madyo left after receiving a settlement package.
DA Gauteng health shadow MEC Jack Bloom says provincial health CFO Lerato Madyo was paid a lucrative settlement package despite communication that she had resigned.
Video: @Koena_xM pic.twitter.com/3Hs3YYK2dw— Sowetan (@Sowetan1981) March 11, 2026
“The parties concluded a settlement agreement, the material terms of which are subject to a confidentiality clause mutually agreed upon and signed by both parties,” read the response.
The settlement was allegedly authorised by the accounting officer, suspended health head of department Lesiba Malotana, who was suspended after his lifestyle audit flagged him as “high risk” due to significant discrepancies between his declared income and lifestyle.
Deokaran message
Madyo previously faced disciplinary action linked to controversial procurement contracts at Tembisa Hospital. In a WhatsApp message to Madyo, shortly before Deokaran’s death, Deokaran said she feared their lives could be in danger.
“Morning, CFO, I am just worried that the guys in Tembisa are going to realise we are onto something. Our lives could be in danger.”
Bloom said Madyo initially froze the R104m payment that Deokaran had flagged, but later allowed it to be released.
“After telling Babita [Deokaran] she would act on the recommendation for a forensic investigation, she only did a small sample audit at the hospital, and even this report was suppressed,” Bloom told the media conference.
“Madyo was paid R3m while suspended with pay for two years as the department dragged out her disciplinary inquiry on 13 misconduct charges … She left with her pension and an undisclosed settlement amount.”
Bloom said they laid criminal charges against Madyo in October last year for contravening the Prevention and Combating of Corrupt Activities Act, the Criminal Procedure Act, and public finance management regulations.
“Our legal advice is that the settlement agreement with Madyo can be challenged as unlawful and in contravention of the PFMA [Public Finance Management Act]. The courts have ruled that state settlements cannot legitimise unlawful conduct and agreements involving public money are subject to scrutiny,” he said.
Bloom said Madyo’s suspension and “fraudulent activities” relate all the way back to the time of Dr Ashley Mthunzi, the late former Tembisa Hospital CEO.
“When all of this money was stolen with the fishy contracts, he was central to this [corruption]. He was also plagued with the same disciplinary charges as Lerato [Madyo]. Still, he died before they concluded [the disciplinary process], and since there was no conclusion, she was allowed to go off.
“Still, I went to the public protector because I heard he was irregularly appointed as the CEO of Tembisa Hospital. The public protector confirmed that he was irregularly appointed and that Lesiba [Malotana] had signed off on [the appointment],” said Bloom.
He said Malotana should have been disciplined for a range of other things.
Bloom alleged that his sources have told him that Madyo was now in Limpopo using a new name.
“So I do believe she’s in Limpopo. We have a new name of Danielle Molape that she goes by because of what she did, including the golden handshake — so she’s got no record. Not that it seems to stop people who were dismissed in one province from getting hired in another, but she left with nothing against her record,” she said.
Koena Mashale
www.sowetanlive.co.za
