Correctional Services spokesman Manelisi Wolela has denied allegations that student leader Mcebo Dla.
Two alleged kidnappers were arrested and have appeared in court after a street shootout that ensued when they went to collect a ransom of R50000.
Police said the drama started on Monday when the suspects went to meet two men at the Carlton Centre in Johannesburg to conclude a deal involving fraudulent driver's licences.
Constable Neria Malefetse said: "All we know is that the three met in Johannesburg for the driver's licence deal. The victim was to give the men licences in exchange for cash.
"Instead they kidnapped him and called his wife, demanding R50000."
"They warned that they would kill him if the money was not forthcoming."
She said the kidnapped man's wife alerted the police, while the victim's brother got the money together after being told about the kidnap.
An appointment was set up with the kidnappers.
The kidnappers kept the man hostage at a house in Alexandra on Monday night
On Tuesday the man's wife and brother-in-law, accompanied by two police officers, went to meet the kidnappers on the corner of 6th Avenue and Roosevelt Street in Alexandra.
"Four men arrived in a car," Malefetse said. "When they realised that the victim's wife was with police officers they started shooting. The police returned fire."
Malefetse said two of the men escaped but two were arrested.
Police found two 9mm pistols on the scene and another in the car the the men arrived in.
"The two led the police to a house in Alexandra, where the Vaal man was found unharmed," Malefetse said.
The suspects appeared briefly in the Wynberg magistrates' court yesterday on charges of kidnapping and attempted murder.
Magistrate Gideon Schnetler postponed the trial to Wednesday for a formal bail application.