Onderstepoort Biological Products (OBP) acting CEO Dr Jacob Modumo has been placed on precautionary suspension while allegations about the pricing and distribution of foot-and-mouth disease vaccines are investigated.
Why Modumo was suspended
Onderstepoort Biological Products (OBP) acting CEO Dr Jacob Modumo has been placed on precautionary suspension following allegations concerning the pricing and distribution of foot-and-mouth disease (FMD) vaccines.
Agriculture Minister Willie Aucamp confirmed the suspension.
Aucamp said the OBP board had been presented with allegations of serious misconduct relating to the pricing of FMD vaccines.
“On Friday, 4 September 2026, I convened an urgent meeting with the board of OBP, at which I presented information about allegations of serious misconduct against the acting CEO relating to the pricing of FMD vaccines,” he said.
The board subsequently notified Modumo of its intention to suspend him and, in accordance with OBP policy, gave him five days to provide reasons why he should not be suspended.
“Should these reasons be insufficient, the suspension will remain in place pending an independent investigation into these allegations,” Aucamp said.
The minister said OBP should not profit unduly from the FMD crisis affecting farmers.
“Given that South Africa is experiencing the largest FMD outbreak in the country’s history, government has a responsibility to protect and support farmers by ensuring that vaccines are procured and made available in the most cost-effective and efficient manner possible,” he said.
Aucamp added that, as a government entity, OBP had an obligation to act in the public interest.
“There should therefore be no exorbitant mark-up on the sale of FMD vaccines, particularly at a time when farmers are already carrying the significant financial burden of this outbreak,” he said.
Aucamp stressed that the suspension was a precautionary measure and should not be regarded as a finding of wrongdoing or misconduct.
“The measure is intended to ensure that the principles of good governance, accountability and due process remain firmly at the forefront of the operations of this public entity,” he said.
“It is important that the department, as well as all public entities and boards under my watch, perform their duties ethically and to the highest standards. Nothing less will be tolerated.”
Committee calls for transparency
The Portfolio Committee on Agriculture said it understood that the suspension followed serious allegations concerning the pricing and distribution of FMD vaccines.
It is alleged that OBP imported critical FMD vaccines at a lower cost and sold them to provincial departments and livestock farmers at inflated profit margins.
The committee said its immediate priorities were transparency, the protection of public funds and safeguarding livestock farmers affected by the outbreak.
Committee chairperson Nomasonto Motaung described the suspension as a serious development and said the committee had requested a comprehensive briefing from the Department of Agriculture.
“While the committee acknowledges that this suspension is an interim administrative action and not a declaration of wrongdoing, the price-gouging allegations are very serious and require immediate action,” she said.
Motaung said the committee wanted the department to provide details of the independent forensic investigation and assurances that vaccine distribution to affected farmers would continue without interruption.The committee would withhold further judgement until a full report was presented to Parliament.
Farmers call for investigation
Francois Rossouw, CEO of the Southern African Agri Initiative (Saai), welcomed the disciplinary action and the investigation into the alleged manipulation of FMD vaccine prices.
“It is high time that a thorough investigation be conducted into possible unlawful profiteering through transactions between state entities, state-owned enterprises, and national and provincial government departments,” Rossouw said.
“Farmers expect action to be taken against decision-makers where wrongdoing is established, and that any profits found to have been unlawfully obtained be recovered and used to help alleviate the enormous financial burden that the FMD crisis has placed on farmers.”
Rossouw said consequences for officials found to have acted improperly would send a strong message that corruption, collusion and unlawful profiteering during disaster management would not be tolerated.
“No one bears greater losses from the FMD crisis than farmers. It is neither fair nor sustainable for farmers alone to foot the bill for South Africa’s fight against foot-and-mouth disease,” he said.
Expert stresses presumption of innocence
Professor Simphiwe Madikizela, a senior lecturer in economics at the University of South Africa’s School of Graduate Business and Leadership, said a precautionary suspension was not a finding of guilt.
“It is a necessary step to allow for an investigation and to ensure that there is no interference. Everyone is presumed innocent until they are found guilty on the basis of evidence that can be proven and substantiated,” he said.
Madikizela said accountability and the rule of law had to be upheld regardless of who was involved.
He called for the independent forensic investigation to be completed promptly.
“Based on the outcome of the investigation and the evidence found, there should be consequences, and the recommendations should be acted on and implemented,” he said.
yogashen.pillay@nationalmg.co.za