The Minister of Justice and Correctional Services Ronald Lamola says they are bemused, shocked and puzzled to learn that South Africa's request to have the Gupta brothers extradited from the United Arab Emirates (UAE) had been unsuccessful.
The briefing follows reports that the Gupta's were spotted in Switzerland when they were supposed to be in custody.
Minister Lamola says this already happened in February but South African authorities were only notified on Thursday.
He says they were also surprised to learn that the UAE considered the Gupta's to be residents of Vanuatu, an island in the South Pacific.
According to a report in Bloomberg, Atul and Rajesh Gupta, reportedly used their South African passports to fly by private jet and have been visiting the Central African Republic, where they have sought asylum.
The National Director of Public Prosecutions (NDPP) Shamila Batohi says they did everything according to the book and were left confused by the latest developments.
She says the first warrant of arrest did not contain all the charges levelled against the Gupta's and a new warrant was issued, therefore, cancelling the first one.
Batohi says the fact that the UAE considered this as one of the technicalities for denying the extradition, is strange as it could have been clarified by communicating.
The Minister says they are now taking the matter on appeal and will continue to engage with our counterparts in the UAE to preserve the integrity of our bilateral relations.
The Guptas were arrested in the UAE in June last year and were detained after Interpol placed them on its most-wanted list.
The Gupta family has become synonymous with State Capture and had a close relationship with former President Jacob Zuma.