KwaZulu-Natal MEC for transport, safety and liaison Willies Mchunu has condemned the incident involving a fierce exchange of gunfire between two security companies in Mandeni on the North Coast.
Mchunu has called the incident "a blatant disregard for public safety, and an irrational business practice".
More than 400 rounds of ammunition were expended on Friday when the guards exchanged fire at a taxi rank.
Witnesses said the taxi rank resembled a "war zone".
Mchunu convened a series of meetings over two days after the incident.
He met members of the Mandeni-Sundumbili Taxi Association on Saturday, and yesterday leaders of the two companies.
The two companies are allegedly fighting over a lucrative contract to provide security at the Mandeni-Sundumbili Taxi Rank.
Three taxis were damaged during the shootout at the rank.
Mchunu's spokesperson, Bheki Mncube, said they were trying to establish the cause of the violence.
Police spokesperson Jay Naicker said 23 security guards were arrested and 23 rifles and two pistols seized.
About 400 spent cartridges were recovered from the scene.