This after a video was posted on YouTube showing Frikkie du Preez and Christoff Becker allegedly drinking and using a mobile phone in a prison cell, in Kgosi Mampuru Prison, in Pretoria.
The two are part of the Waterkloof Four - along with Reinach Tiedt and Gert van Schalkwyk - who were sentenced to 12 years in custody for murdering a homeless person in Waterkloof.
They were released on parole on 11 February for good behaviour.
Ndebele said his department would not hesitate to act against any official involved, as the footage was taken while Du Preez and Becker were in custody.
"Anarchy at any correctional centre will not be tolerated, and any official or offender found guilty of any such offence will face the full might of the law.
"As the Department of Correctional Services (DCS), we will fight fraud and corruption with vigour," said Ndebele.
Du Preez and Becker were rearrested on Sunday for allegedly smuggling alcohol into prison and having a party. An investigation is underway.
Ndebele said as part of the department's anti-corruption strategy, since 2009/10 more than 171 DCS officials were dismissed, demoted or suspended for various offences related to fraud and corruption.
"Correctional Services today has made significant strides from the inherited prison system prior to 1994. According to the Public Service Commission Report for 2011/12, DCS was evaluated as the third best institution in dealing with fraud and corruption. However, much more still needs to be done," he said.
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