Correctional Services spokesman Manelisi Wolela has denied allegations that student leader Mcebo Dla.
A Limpopo headman is fuming because the Greater Letaba municipality has threatened to evict more than 300 families.
The families have been living in fear since last Friday, when they were told to vacate the area.
The villagers of Mochidi, near GaKgapane township outside Modjadjiskloof, allege that the municipality wants them to leave because it wants to build low-cost and middle-income houses.
The headman, Joel Kgapane, says the municipality took the decision without consulting him. He says the problem started when he took over from his father who died in 2006.
"We suspect that a senior municipal official took a kickback from developers and promised them land for the housing development," he says.
Kgapane says the villagers have ignored the instruction for two years because they have nowhere to go.
Resident Carlton Maeko says the families are very concerned.
"We are worried because we were told to leave but not where to go," Maeko says.
Municipal spokesman Vyida Rakubu confirms the impending eviction.
She says Letaba bought the land to extend Kgapane township.
She says they were negotiating with the Modjadji traditional authority for land to move the villagers to.