South Africa's President Cyril Ramaphosa has placed the country's top policeman on 'precautionary suspension' after he was charged in court on Tuesday. Gen Fannie Masemola, 62, is alleged to have failed in his oversight duties in connection with the awarding of a controversial $21 million health contract, which has become the subject of a criminal investigation and has since been cancelled. He has been charged with violating part of South Africa's Public Finance Management Act, which governs how taxpayers' money is spent. Masemola told journalists after Tuesday's hearing that he denied the charges. 'I know that I'm not guilty, I'm not wrong, but the [law] must take its course,' he said. He is the third South African police chief to face a criminal investigation while in office. Ramaphosa stated that he had decided to suspend Masemola because of the 'seriousness of these charges and the critical role that the national commissioner of police plays in leading the fight against crime.' Masemola will be suspended until the court case is concluded, Ramaphosa added. The president made the announcement during a press briefing in Pretoria, with Masemola's replacement, Lt-Gen Puleng Dimpane, standing alongside him. Ramaphosa stressed that it was vital for law enforcement agencies to be 'capable, ethical and effective' and have the confidence of the people of South Africa. Masemola's court case relates to a tender awarded to controversial businessman Vusimuzi 'Cat' Matlala's company, which was intended to provide health services to the police. The contract was cancelled a year later, and since then, a dozen senior police officers have been formally charged for their roles in the awarding. They are accused of colluding with Matlala, who has also been charged with corruption. However, Masemola, who has not been charged with corruption, faces four counts of breaching the public finances act. These allegations were raised during the Madlanga Commission, established by Ramaphosa to investigate corruption in the police force.