South Africa's President Cyril Ramaphosa has suspended the national police chief implicated in a $20 million health tender scandal that has rocked the country and drawn in other officers.

National Police Commissioner Fannie Masemola is accused of flouting procurement laws in a now-cancelled 2024 police tender for health services awarded to a businessman who is suspected of links to organised crime.

"In consideration of the seriousness of these charges and the critical role that the national commissioner of police plays... I have agreed with General Masemola that he be deemed to be on precautionary suspension pending the conclusion of the case," Ramaphosa told journalists on Thursday.