Twenty-eight female guards were unfairly dismissed by a security company because the client‚ Metrora.
The department of local government and housing in Limpopo has until the end of the month to explain to the provincial legislature why RDP houses in Mogwadi were allocated to the well-to-do and government officials.
The poor and disadvantaged have been left out in the cold.
The legislature also wants both the Molemole local municipality and the department to explain how 27 of the 400 houses built for the poor were occupied by teachers, nurses, ward councillors, government employees and illegal immigrants.
The same applies to the allocation of food parcels. Even public servants who do not qualify were found to be benefiting.
The matter came to light after disenchanted residents petitioned the legislature last week.
The legislature confirmed it received about 20 petitions demanding that investigations be launched and those illegally occupying the houses be forced to vacate them.
During a public hearing by the standing committee on public participation and petition at the weekend in the Molemole Hall, senior municipal officials were found to be illegally occupying some of the houses.
Some of those who occupied the houses were professionals such as officials from the department of safety and security, South African Police Service members, teachers and nurses.
Municipality spokesman Timothy Molopa said most of those illegally occupying the houses were public servants who were given the houses long before they were employed.
Clayson Monyela, spokesman for the provincial department of local government and housing, said the names of illegal occupants would be handed to the law enforcement agencies.
Limpopo legislature spokesman Kenny Mathivha said they would need documentation that ensured legitimacy of ownership.