The Treatment Action Campaign says German born Matthias Rush endangered AIDS patients by advocating vitamin compounds as an alternative therapy.
The group says Health Minister Manto Tshabalala-Msimang - known for espousing garlic and olive oil instead of antiretroviral drugs for people with HIV - failed to protect public health by allowing Rath to operate.
Officials at the Matthias Rath Foundation could not immediately be reached for comment Tuesday.
Tshabalala-Msimang says the Medicine Controls Council is still looking into the allegations against Rath.
Rath has been criticized by the World Health Organization for claiming his supplements cure AIDS and that antiretroviral medicines are toxic.
He has accused multi-national drug companies of colluding to prolong the AIDS crisis in the name of profit.
The activists say Rath's claims have generated a lot of confusion in South Africa, where an estimated 6.3-million of the 47-million population, are infected with HIV.
