South Africa's health department has recalled millions of condoms given out under a program it funded
The company that produced the condoms, Zalatex, allegedly bribed a government official to certify almost four million faulty condoms as up to standard.
The government is now recalling all 20 million Choice brand condoms produced by the company.
Zalatex's attorney, James Ndebele, from Fluxmans Attorneys, said the company strongly denied the allegations.
He told the BBC News website that the allegations were "untrue... offensive and defamatory".
He said Zalatex was fully prepared to co-operate with the investigation.
About five million people in South Africa are believed to be infected with the HIV virus.
Every year, the South African government distributes hundreds of millions of condoms in a bid to control both birth rates and sexually transmitted diseases.
Department recalls more condoms