Several employees at the O.R Tambo District Municipality's have been hospitalised after smoke filled up the Call Centre and Billing section in Mthatha on Sunday.
The smoke was thought to have been caused by an electrical fault blamed on power outages.
The power failure which affected the whole Mthatha CBD resulted in a huge burst and smoke.
According to a statement the power kept going on and off.
Thirteen staff members have already been discharged from the hospital and only one is still receiving medical treatment.
The building has been closed until further notice.