Fannie Masemola is accused of violating procurement laws in a now-abolished police procurement for health services that was awarded to a businessman suspected of having links to organized crime.
The procurement - worth the equivalent of around 200 million kronor - has shaken the country and has also drawn in other civil servants.
"Given the seriousness of these allegations and the crucial role played by the National Police Commissioner (...), I have agreed with General Masemola that he should be considered suspended as a precaution pending the conclusion of the matter," Ramaphosa said during a press conference.
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