South African President Cyril Ramaphosa said on Thursday he had put police chief Fannie Masemola under precautionary suspension over accusations that he violated public funds' rules in the awarding of a multi-million dollar healthcare contract.

Masemola, the National Commissioner of the South African Police Service (SAPS), has denied the charges, which were laid by prosecutors after allegations at a national corruption inquiry related to the contract with Medicare24.

"These measures have been necessary to ensure accountability and to devise remedial action to prevent the abuse of office and the theft of public resources," Ramaphosa told a press conference in Pretoria.

Lieutenant-General Puleng Dimpane has since been appointed as acting national commissioner. She has served as SAPS Chief Financial Officer since 2018.

Masemola is accused of violating the Public Finance Management Act. 

Prosecutors allege Medicare24 colluded with police officials to secure the tender to provide health services to the police, with Matlala receiving payments of just over 50 million rand ($3 million) before the contract was cancelled.

Masemola has been in charge of the day-to-day running of the police since 2022.

President Ramaphosa set up the Madlanga Commission in July 2025, to look into allegations of collusion involving politicians and law enforcement. This came after a a senior police official alleged corruption and political interference had compromised criminal investigations.

Police minister Senzo Mchunu was put on a leave of absence when the president established the inquiry last year.