The contract benefiting suspended ANC Youth League president Julius Malema cannot be cancelled because it would have serious legal implications, the public protector's spokeswoman says.
"There could be possible unintended consequences by suspending in its entirety... It is a binding agreement," said Kgalalelo Masibi.
The contract has already been running for two years.
Public protector Thuli Madonsela met with the Limpopo Roads and Transport Department on Wednesday and one portion of the contract was suspended.
"Both parties agreed to suspend one aspect of the contract, that is, the participation of On Point in the bid evaluation committee until the investigation is concluded," her office said in a statement.
On-Point Engineering is partly owned by Malema's family trust.
Madonsela is probing claims that the Limpopo government awarded irregular tenders to On-Point Engineering, which benefited Malema.
The outcome of the investigation was expected before the end of the year.
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