The Nebo traffic testing station in Limpopo, dubbed the most corrupt in the province, was closed down yesterday.
The provincial roads and transport department found that the station's management had been involved in illegal and fraudulent transactions when they issued licences.
Applicants for learner's and driver's licences, from as far afield as Cape Town, KwaZulu-Natal, Free State and Gauteng, flocked to the station for illegal licences.
Investigators were sent to investigate activities at the station last year and found evidence of fraudulent activity.
The department yesterday decided to appoint new management, much to the disapproval of some traffic officials and local driving schools.
Departmental spokesman Selby Makgotho confirmed yesterday that the station had been closed with immediate effect.
He said it would be closed for two weeks and then new management would take over.
"We discovered there was a lack of cohesion, particularly in the relationship between driving school owners and officials," Makgotho said.
He said there were allegations of mismanagement, corruption and poor leadership.
"The temporary closure creates an opportunity to look into the question of restructuring, which will be done by bringing in new management and staff," he said.
Two weeks ago a driving school owner was shot dead at the station. It has not yet been established what the motive for the killing was.
Makgotho said: "The situation is so serious that someone has already lost a life, hence MEC Justice Pitso's intervention. He will decide where to deploy staff previously based at the station."