The board of trustees of the Independent Development Trust IDT has placed its CEO Tebogo Malaka on precautionary suspension with immediate effect.
The decision on Friday follows the boards receipt and consideration of a final forensic report this week relating to procurement irregularities in the R800m pressure swing adsorption PSA oxygen plant tender.
The investigation, ordered by public works and infrastructure minister Dean Macpherson, recommended disciplinary action against Malaka, general manager for supply chain management Dr Molebedi Sisi and other officials.
The IDT said its precautionary suspension was aligned with internal policies and the Labour Relations Act and was instituted to allow for an independent and unhindered investigation into the serious matters raised.
The board emphasises this is not a disciplinary sanction. Ms Malaka remains an employee of the organisation and has not been found guilty of any misconduct.