Correctional Services spokesman Manelisi Wolela has denied allegations that student leader Mcebo Dla.
The acting chief executive of the Land Bank, Phil Mohlahlane, has apparently not yet destroyed his cancelled identity document.
Mohlahlane was issued with two identity documents with different numbers and birth dates.
Efforts to get comment from Mohlahlane have drawn a blank.
The first ID was issued in 1994. It was cancelled when the second was issued in 2000.
It has emerged that Mohlahlane used the cancelled ID in November last year to buy property and businesses.
He bought a R2,7 million property for cash at Kyalami, Midrand. The full amount was transferred into the estate agent's account on November 9 last year. Only the transfer costs were outstanding.
Department of Home Affairs spokesman Mantshele Tau said that when a new ID was issued the old one should not have been used.
"The moment someone uses a cancelled ID it becomes fraud and therefore a criminal matter for the police to investigate," Tau said.
Last week, Mohlahlane lost the land and the money because he did not pay the transfer costs within the stipulated period in the sale agreement.