Minister of International Relations and Cooperation Lindiwe Sisulu says her department will probe allegations that late Libyan dictator Muammar Gaddafi's loot of millions made its way from Nkandla's bunker to Eswatini - if the Libyan government wants it to do so.
She labelled the claims "ghost stories".
On Monday, broadcaster eNCA reported that the Department of International Relations and Cooperation (Dirco) will indeed investigate the matter.
This came after the Sunday Times reported on Sunday that Libyan military authorities asked President Cyril Ramaphosa to help recover an estimated R442m which belonged to Gaddafi and which was believed to be in eSwatini.
The newspaper reported that the money was secretly moved to eSwatini in five tranches earlier this year from former president Jacob Zuma's Nkandla residence, where it had ostensibly been hidden in Nkandla's bunker.
King Mswati III reportedly confirmed the existence of the money to Ramaphosa last week during a meeting at OR Tambo International Airport.
Speaking at an ANC press conference on Sunday, Sisulu said: "This is very much like a ghost story. If you believe in a ghost you will see a ghost, but you will never be able to touch it. This is a story that has been circulating for many, many years."
"There is no money in Swaziland. There is no money that we're aware of. And I speak honestly as a Minister of International Relations."
"If the Libyans make a request for us to investigate this matter, we will be open to doing so," Sisulu said.
In 2014, while investigating the Nkandla matter, former Public Protector Thuli Madonsela was denied entry to the bunker at Zuma's Nkandla homestead, despite an earlier agreement with the security cluster ministers that she would be allowed to inspect the bunker, City Press reported in 2016.