South Africa's president suspended the country's police chief on Thursday over allegations that he broke public finance rules in the irregular awarding of a R228-million tender.

Fannie Masemola, the National Commissioner of the South African Police Service, has denied the charges, which prosecutors laid after revelations at a national corruption inquiry.

Other people charged over the contract include businessman Vusimuzi Matlala, whose company Medicare24 won it. Matlala and 15 others stand accused of corruption, fraud and money laundering. They have not yet entered pleas in court.

President Cyril Ramaphosa has appointed Puleng Dimpane as acting police chief while Masemola is on a precautionary suspension. Dimpane has been serving as the police service's divisional commissioner for financial management services.

"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.

Prosecutors allege Medicare24 colluded with police officials to secure the tender to provide health services to the police. Matlala received payments of just over R50-million before the contract was cancelled.

Masemola, who is accused of violating the Public Finance Management Act, has been in charge of the day-to-day running of the police since 2022.

Prosecutors allege he failed to comply with required financial oversight and procurement controls.

The Medicare24 contract has been one of the focal points of the Madlanga Commission, which is investigating allegations that criminal syndicates infiltrated parts of South Africa's law-enforcement and criminal justice system.

The Madlanga Commission was set up in July after a senior police official alleged corruption and political interference had compromised criminal investigations.

Ramaphosa put police minister Senzo Mchunu on a leave of absence when he established the inquiry last year.

Mchunu has denied guilt, calling corruption allegations against him baseless.