The president expresses his dissatisfaction at the body’s conduct in fighting corruption in the country, it added.
Mr Magufuli has also suspended four top officers in the anti-corruption body who travelled abroad despite the government’s recent suspension of all foreign trips for public servants.
Since coming to office in October, Mr Magufuli, who is nicknamed “The Bulldozer”, has announced a range of cost-cutting measures, including a ban on unnecessary foreign travel by government officials.
He also replaced the independence celebration with a clean-up campaign.
This suspension should send a clear message to other public servants who think the president was bluffing when he announced the ban on foreign trips, the government added.