Faith Muthambi has stripped her director-general, Mashwahle Diphofa, of his powers, apparently for refusing to fund her imbizos.
The minister of public service and administration is also said to have sidelined the department's chief financial officer, Masilo Makhura, for siding with Diphofa on allocations of money.
Muthambi's spokesman, Nthambeleni Gabara, said delegations were under review.
They told her that if she continued to have these imbizos her money will be finished by September.
As communications minister Muthambi was known for hosting imbizos, which the opposition described as ANC electioneering events.
Muthambi has hosted three imbizos since being moved to public service and administration, costing the department about R2-million.
Insiders say she revoked delegated duties to Diphofa after he and Makhura warned her about hosting imbizos using department money. Her department is largely responsible for state employees.
"They told her that if she continued to have these imbizos her money will be finished by September ... But she wanted department money to be allocated to her for these events," the source said.
Soon after, Muthambi wrote to Diphofa revoking his duties.
Cost the taxpayer R2 million and drew criticism that Muthambi was using them as an electoral tool
— 3 imbizos
Gabara said: "Delegations in the department are currently under review following the amended public service regulations which came into effect towards the end of last year."
An employee in the department said Diphofa could no longer approve trips overseas or be the point of correspondence between the department and parliament. Muthambi's office denied this.
The insider said when Makhura questioned Muthambi's decisions, the minister brought former Government Communications and Information Systems chief financial officer Zweli Momeka to the department.
"Apparently [Momeka] used to reallocate funding from the department to Muthambi's ministry there," the source said.
Acting GCIS head Phumla Williams confirmed that Momeka had left GCIS for Muthambi's department.
Gabara defended the imbizos, saying ministers had been directed to engage directly with communities.
