Correctional Services spokesman Manelisi Wolela has denied allegations that student leader Mcebo Dla.
A squabble over bus fares between bus and taxi owners' associations in Bizana in the Eastern Cape has raised fears of possible taxi violence.
The tensions arose two weeks ago after the launch of 55 new buses, owned by Africa's Best 350.
Police in the area have intervened and have increased patrols along all bus routes, said police spokesman Mlungisi Mathidane.
Bizana Taxi Owners Association chairman David Dlamini said they won't accept the buses on their routes.
"We are running at a loss since the buses started to operate because they are very cheap," he said.
Bus company chairman Simlindile Hintsha said they were planning to have a meeting with taxi owners soon.