Onderstepoort Biological Products acting CEO Jacob Modumo has been suspended by the state-owned vaccine maker’s board over allegations linked to the pricing of foot-and-mouth disease vaccines, Agriculture Minister Willie Aucamp said.

Aucamp, who took over the agriculture portfolio on June 30, said he convened an urgent meeting with the OBP board Friday after receiving information about alleged serious misconduct involving Modumo.

“On Friday … I convened an urgent meeting with the board of OBP wherein I presented the board with information of allegations of serious misconduct relating to the pricing of foot and mouth disease (FMD) vaccines against the acting CEO of OBP,” Aucamp’s office said in a statement Saturday.

The board subsequently notified Modumo of its intention to suspend him and gave him five days to explain why the suspension should not remain in place. If his response is deemed insufficient, the suspension will continue while an independent investigation is conducted.

Aucamp stressed that the action is precautionary and does not represent a finding of wrongdoing against Modumo.

Questions over vaccine markups

OBP, a state-owned institution, is responsible for importing and manufacturing animal vaccines. It imports and sells FMD vaccines to farmers and, as a public entity, is not intended to make excessive profits from their sale.

South Africa currently relies heavily on imported FMD vaccines from Biogénesis Bagó in Argentina and Dollvet in Turkey.

GroundUp reported that the allegation involves vaccines purchased from Biogénesis at about R45 ($2.81) a dose and later sold by OBP for between R70 ($4.37) and R130 ($8.13).

The Agriculture Ministry said the government has a responsibility to ensure vaccines are obtained and supplied to farmers as efficiently and affordably as possible, particularly during the country’s worst FMD outbreak.

“There should therefore be no exorbitant markup on the sale of FMD vaccines,” the ministry said.

Aucamp stressed that the suspension is a precautionary measure and does not amount to a finding against Modumo.

Farmers win access to vaccines

The dispute comes after farmer organizations challenged the Agriculture Department in court over access to FMD vaccines.

In May, the Gauteng High Court in Pretoria issued an interim ruling allowing farmers to purchase vaccines directly. Following an agreement with Aucamp, farmers can now obtain vaccines through veterinarians, while providing the department with information on their use.

The court battle was also a major factor in John Steenhuisen’s departure as agriculture minister.

OBP’s vaccine production problems persist

The latest controversy adds to a long history of problems at OBP. The institution manufactured FMD vaccines until around 2005, but lost that capability after years of mismanagement.

In 2013, it received a R500 million ($31.3 million) government grant to rebuild its manufacturing capacity. An audit later found that a significant portion of the money could not be accounted for.

OBP still does not manufacture FMD vaccines. It is separate from the Agricultural Research Council facility at Onderstepoort, which produces limited quantities of FMD vaccines.

South Africa has an estimated 12 million to 14 million cattle. Because cattle generally require two vaccinations a year for optimal protection, the country needs roughly 25 million doses annually, volumes that Biogénesis and Dollvet can supply.

Modumo has led OBP as interim CEO since 2025

Modumo is a veterinary professional and executive with more than 27 years of experience in animal health, vaccine production and commercial operations. He has served as OBP’s interim CEO since May 27, 2025. He stepped into the role following the resignation of the previous CEO, Bethuel Nthangeni.

His background includes animal disease control, vaccine manufacturing, regulatory compliance, supply chain management and market development. He has also worked on expanding markets, building partnerships and developing business models in the livestock health sector.

OBP, founded in 2000, is a South African state-owned biotechnology company focused on vaccines for livestock diseases. The organization says it has more than 25 years of experience, about 850 employees and more than 320 customers across South Africa, Africa and international markets.