Correctional Services spokesman Manelisi Wolela has denied allegations that student leader Mcebo Dla.
Winnie Mabaso will be homeless this Christmas because, she said, Andries Bezuidenhout, of KLB developers, has failed once again to honour his promise to build her house.
Mabaso got the shock of her life last week when she discovered that her house was far from being completed.
She has been hospitalised and is being treated with sedatives.
She has been battling since February to get her house built, or a refund of R500000, from KLB.
Mabaso invested the death benefits from the insurance policies of family members in a house, which KLB has now said they cannot build.
She said the developer sold her a piece of land that was littered with rocks and claimed they cannot remove them and therefore cannot build her house.
Bezuidenhout undertook to build the house earlier this year.
He also promised that Mabaso would take occupation by this Friday, but when a Sowetan team visited the property the house was still at foundation level.
Mabaso said she gave KLB another chance to build the house in October.
"This company has no respect and has failed to treat me like a valued client after I paid them so much money.
" It saddens me that I will spend yet another Christmas without a home," she said.
Mabaso has been renting a flat since she lost her house after the death of her husband and her daughter last year.
Bezuidenhout could not explain why he had failed to build Mabaso's house.
He ignored our inquiry.
Advocate Gaki Pitso, a consumer protector for Gauteng consumer affairs in the Department of Finance, will investigate Mabaso's complaint.