President Thabo Mbeki is expected to open a R460 million 'white elephant' prison in Kokstad next week.
The running of the super-maximum-security prison, constructed in shadowy circumstances under the supervision of the department of correctional services, is already on the brink of collapse.
The jail has become the centre of conflict between the local municipality and the department of public works over who should be responsible for paying the jail's water and electricity costs.
Department of Public Works spokesman Lucky Mochalibane said the department would pay only for water and electricity that had been consumed, but would not be involved in the "purchase stage". In terms of the law, municipalities are supposed to buy services from parastatals or enter into private-public partnerships, and then deliver these services to both state institutions and individuals. Consumers should then pay municipalities for services used. However, Kokstad mayor Mandla Mathe said the municipality was unable to buy these services.
Even if a R20 million bail-out were secured from national government, this would only help provide services for the next two years, he said.