Correctional Services said that “matters are under control” at Johannesburg’s Sun City Prison on Wed.
Beeld newspaper reported that Malema was allegedly unable to settle debt of R400,000 owed to his building contractor at the end of March, after which the company decided to transfer its workers to another project in Bedfordview.
According to Beeld, Malema tried to transfer money from two accounts to pay Kwandisa Construction, but his second transfer failed.
The SA Revenue Service had also reportedly approached Kwandisa Construction with queries about Malema’s financial affairs.
Federico de Gregorio, the owner of Kwandisa Construction, confirmed to the newspaper on Thursday that building had been “temporarily halted”.
He could neither discuss nor confirm rumours that Malema’s account was in arrears, or divulge details about the outstanding amount.
Malema bought the property in September 2009 for R3.6 million, then demolished it to make way for a new three-storey home with an underground parking garage.