The official, Captain Siyabonga Tutu, was working in the Medium A section of the St Albans Correctional Facility where murder accused Arnold Terblanche was in custody for over a year.
Terblanche, who was released on bail of R1 million earlier this month, is awaiting trial for his alleged involvement in the murder of his estranged wife, Vicki.
Captain Tutu was accused of granting special privileges to Terblanche which included allowing him contact visits with his son and former girlfriend Krystall Wiggill.
He was also instrumental in providing a phone for Terblanche who told the court that it was Tutu who had introduced him to Phindile Zweni, who swindled him out of R500 000.
Captain Tutu had even met up with Wiggill and Arnold's son at a parking lot opposite the Greenacres Shopping Centre where gifts were allegedly exchanged.
The spokesperson for the DCS in the Province, Nobuntu Gantana, confirmed to AlgoaFM News that disciplinary action against Captain Tutu is currently in process.
She said the details, however, were sub-judice and cannot be divulged to the media.
Tutu was moved to Medium B section at St Albans shortly after the allegations came to light.
During Terblanche's third attempt at bail based on new facts, he said in his sworn affidavit that Captain Tutu regularly came to fetch him from his prison cell to meet up with Phindile Zweni.
He said he even stopped eating prison food after Tutu warned him not to purchase anything from the kitchen from sentenced offenders, especially meat.
Terblanche blamed this on his dramatic weight loss of more than 20 kg while in prison at St Albans.
For an in-depth look into the case, you can catch up on the Algoa FM News Exclusive Podcast "Journey to Justice".