Was ex-Gauteng health CFO paid to dip? Lesufi to investigate ‘settlement’

Claims have surfaced that corruption-accused former Gauteng Department of Health CFO, Lerato Madyo, was paid to leave her role, with Premier Panyaza Lesufi announcing an investigation into the “settlement”.

The department announced Madyo’s resignation in August 2024, but DA Gauteng health spokesperson Jack Bloom disputed the claim on Wednesday.

Bloom alleges that Madyo received a “lucrative settlement package” and is currently living under another name in Limpopo.

“My information says that she is in Limpopo. We have the new name that she goes under”, Bloom told the media, when asked about her current whereabouts.

“She left with a golden handshake. She’s got no record and left in good standing,” said Bloom in displeasure.

The department denied giving Madyo a “golden handshake,” stating they had simply terminated her contract.

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A ‘termination agreement’

Madyo faced disciplinary charges related to alleged corruption worth billions at Thembisa Hospital, flagged by murdered whistleblower Babita Deokaran.

The department initiated an investigation into the matter but said that “evidentiary constraints affected the process’s viability”.

“The department and Ms Madyo subsequently entered into a termination agreement to bring the employment relationship to an end.

“It is important to clarify that this agreement was concluded in line with applicable labour relations frameworks and was not a ‘golden handshake’.

“Any pension benefits payable arise from the rules of the Government Employees Pension Fund, which operates independently and in terms of statutory provisions,” it said on Wednesday.

Lesufi weighs in, to investigate

Bloom also alleged that the settlement was authorised by Lesufi’s office, but the premier denied this.

“The Department of Health did engage the Office of the Premier after the agreement had been finalised, notifying the Premier of the outcome and requesting retrospective concurrence.

“The Premier declined to grant this retrospective approval, citing the lack of consultation or prior involvement of his office,” the provincial government said.

It said Lesufi was not part of the “negotiations and decision-making that led to the monetary settlement”.

“Premier Lesufi dismisses any insinuation that he was part of the arrangements to release the pension payout of the department’s former CFO and would like to point out that Ms Madyo’s disciplinary hearing commenced prior to his tenure.”

Lesufi announced an investigation into the matter.

“An independent legal firm has since been appointed to investigate the matter and determine whether the agreement was handled correctly and to advise on any further action required.

“The Premier shares the public’s concern regarding any expenditure of public funds and remains fully committed to rooting out corruption and ensuring accountability.”

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Was she actually paid off?

The DA laid criminal charges against Madyo on 16 October last year for failing to act on Deokaran’s warnings.

Bloom claimed that the health department had not entered into a termination agreement but rather a settlement.

“Gauteng Health MEC Nomantu Nkomo-Ralehoko says in a written reply to my questions in the Gauteng Legislature that Madyo left the department on 31 July 2024 after ‘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,'” Bloom claimed.

Bloom requested her payout details but received no answer.

“When I asked how much she was paid, the reply was that ‘the settlement agreement contains a confidentiality clause prohibiting disclosure of the material terms, including but not limited to the financial amount paid’.

“The department has lied and covered up a hush money payoff to the person who disregarded Babita’s appeal to investigate suspicious Thembisa Hospital contracts worth R850 million,” said Bloom.

She was allegedly paid “R3 million while suspended with pay for two years as the Department dragged out her disciplinary enquiry on 13 misconduct charges”

“Instead of concluding this enquiry, which would probably have implicated others and led to criminal charges, she left with her pension and an undisclosed settlement amount,” alleged Bloom.

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Implicated by the SIU?

The department said the 2022 and 2025 interim reports from the Special Investigating Unit (SIU) into Thembisa Hospital contracts did not list Ms Madyo among the officials recommended for disciplinary or criminal action.

“The department has consistently cooperated with all investigative processes relating to Thembisa Hospital and remains committed to transparency and accountability.”

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