Khumalo and six other Senior Police officials were arrested in June. However he and five co-accused were released on bail.
The seventh accused has a pending corruption case and remains behind bars.
Addressing the media virtually, National Police Commissioner Fanie Masemola said the Western Cape Hawks head Solomon Makgato would act in Khumalo's position.
"Human Resources division have processed the matter, in line with SA Police Service disciplinary regulations of 2016, all seven Senior Officers have been temporarily transferred out of division crime intelligence; pending more information, which we have requested, which will indicate to us what further cause of action we can do."
--SABC--