Deputy police national commissioner for human resource management, Lt-Gen Bonang Mgwenya has been suspended.
Mgwenya was allegedly involved in fraud relating to a multimillion-rand tender for emergency warning equipment.
National police commissioner General Khehla Sitole confirmed that Mgwenya was suspended "following damning allegations of her alleged involvement in crimes".
In the notice, Sitole said: "You are hereby notified that your suspension transfer under the regulation 10(1) of the SAPS discipline regulations, 2016, will be considered on the grounds that you allegedly committed serious misconduct.
"You are entitled to submit written representations regarding the possible suspension or temporary transfer."
Meanwhile Mgwenya submitted that a suspension would have serious reputation implications for her.
"It is respectfully submitted that there is no legal basis to suspend me at this point in time as a precautionary measure, but rather to expedite the departmental processes in order for the matter to be brought to finality as soon as possible,"she said.
Mgwenya recently appeared at the Palm Ridge magistrate's court after being arrested at her home in the early hours of the morning. She was released on bail and indicated she would plead not guilty to all charges.