OBP acting CEO suspended amid FMD vaccine pricing allegations
· Citizen
Onderstepoort Biological Products (OBP) Board has placed its acting CEO, Dr Jacob Modumo, on precautionary suspension as allegations surrounding the pricing of foot-and-mouth disease (FMD) vaccines come under scrutiny. The OBP Board appointed Modumo as acting CEO on 27 May 2025.
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Agriculture minister Willie Aucamp on Saturday said the suspension follows an emergency meeting held on Friday, 04 September 2026, with the board about the pricing allegations. He added that the acting CEO has not been found guilty of any wrongdoing.
OBP is a state-owned animal vaccine manufacturing and distribution company. Its duties include importing and selling FMD vaccines to farms. OBP is not allowed to make profit from selling FMD vaccines.
Acting CEO suspended
“On Friday I convened an urgent meeting with the Board of OBP wherein I presented the Board with information on allegations of serious misconduct relating to the pricing of Foot and mouth disease (FMD) vaccines against the Acting CEO of OBP,” said Aucamp.
“The Board, after considering the matter, gave the Acting CEO a notice of their intention to suspend him, and as per the OBP’s policy, has afforded him five days to provide reasons why he should not be suspended.”
Aucamp added that should Modumo’s reasons not be sufficient, the suspension will stay in place while the investigation into the allegations is ongoing.
Vaccine prices increased
According to GroundUp, the allegation against OBP is that it bought FMD vaccines from Biogénesis Bagó in Argentina at R45 and sold them for between R70 and R130.
Aucamp has stood firm on the policy that OBP should not profit from the tragedy facing farmers, adding that the government has a responsibility to protect and support farmers by ensuring vaccines are procured and made available as cost-effectively and efficiently as possible.
“As a government entity, OBP has an obligation to act in the public interest. There should therefore be no exorbitant markup on the sale of FMD vaccines, particularly at a time when farmers are already carrying the significant financial burden of this outbreak,” he added.
No wrongdoing found
Aucamp said Modumo’s suspension is a precautionary measure and should not be construed as a finding of wrongdoing or misconduct against him.
Rather, the measure is intended to ensure that the principles of good governance, accountability, and due process remain firmly at the forefront of this public entity’s operations.
“It is important that the department as well as all public entities and Boards under my watch perform their duties ethically and with the highest standards – nothing less will be tolerated – therefore I will maintain strong oversight over such entities to ensure good governance at all times,” he added.
Business to carry on
The minister assured the relevant parties that the suspension will not affect the country’s ongoing FMD vaccination efforts or the progress made in combating the outbreak.
He further urged the farming community not to be deterred by these developments, but rather to view them as an indication of the government’s commitment to good governance, accountability and the integrity of the country’s FMD response.
Aucamp also encouraged farmers to continue applying to become authorised persons, enabling them to vaccinate their own animals in line with applicable requirements and protocols.