Department of Correctional Services Quarterly report and outsourcing briefing

Correctional Services

25 August 2009
Chairperson: Mr V Smith (ANC)
Share this page:

Meeting Summary

The Chairperson, prior to the briefings by the Auditor-General and Department on the quarterly report of the Department of Correctional Services, indicated that the Committee was particularly concerned about the qualifications that the Department had received consistently over several financial years, the continuing problem of overcrowding and issues of outsourcing. The Committee was briefed by the Auditor-General of South Africa on the audit qualifications, which related to lack of proof of spending on tangible assets, including buildings, asset reconciliation, problems with the medical aid payments, and lack of compliance with legislation regarding the continuing problem of overcrowding. On this last point, the Chairperson pointed out that this was not an issue which the Department must address on its own, but was something that must be addressed by the while of the justice cluster, through the Criminal Justice Review.

The Department noted what had been put in place, which included training on the LOGIS system for asset reconciliation, attempts to quantify the assets, and attempts to address some human resources issues. The quarterly report showed some overspending on Security, and underspending on Corrections, Development and Care, and Facilities. The various programmes were briefly described, together with achievements. It was noted that Occupation Specific Dispensation had been put in place for corrections officers, that human resources programmes were improved, that there was now a fraud prevention plan and the research capacity had been strengthened internally. The security statistics were outlined, as well as the figures in respect of parole violations. There was better implementation of skills development programmes, with more inmates involved. Food and services guidelines were developed for inmates. Challenges were identified as budget constraints that prevented sufficient training, the lack of scarce skills and fierce competition between departments to access these, and lack of expertise for the development of programmes.

Members questioned the Medcor issue, asking whether any disciplinary steps should be contemplated. A written report on all questions around procurement of goods and services, and on capital budget expenditure was required from the Department. Members asked if the Department took any steps to get offenders involved or trained in agricultural production and whether, in buying in foodstuffs, the Department was supporting small farming concerns. Members also raised questions about the bid process, employment of women and the disabled, whether there was proper advertising for posts, and asked for a written report on the vacancies and on how many officials were still suspended and for how long their disciplinary matters had been pending. Questions were also asked about the research into parole boards, what the anti-gang strategy implied, when the system of proper and regular meals would be in place across the board, whether there were early warning systems for assaults, and called for a written report on unnatural deaths. Safe custody for inmates was seen to be a core DCS responsibility. Members were also interested in what exactly had been done regarding the Service Level Agreement with the Department of Public Works, what travelling was being undertaken, and for what purpose.

The Department gave a brief presentation on outsourcing, noting that this was done because the Department had problems with skills retention, and felt that outsourcing could enhance effectiveness. Catering and training were outsourced, since the Department lacked the capacity to train managers. Other items outsourced included a survey conducted on organisational culture, cleaning services, and supply delivery. This was cited as contributing to capacity building, enhanced service delivery and risk transfer as well as improvement of procurement systems.
Members were extremely critical of the presentation, asking whether there had been a thorough evaluation, noting that a 25-year public private partnership was far too long, how returns on the investment could be measured. The Chairperson quantified the total amounts spent over the last two years, and commented that some related to core functions, some were unacceptable, whilst others were absurd. He questioned whether the transaction advisor for the suspended public private partnerships had been paid. He insisted on receiving a full written report.

The Committee dealt with the consideration and adoption of its five year plan in a closed session.


Meeting report

Chairperson’s Introduction
The Chairperson noted that the Department of Correctional Services (DCS) had, over the past five years, received audit reports with a number of problematic areas highlighted. He said that the Department must move away from this situation. Attention must be paid to current spending, and, more importantly, issues of outsourcing, which must be discussed with relevant stakeholders. There was a general consensus that the Department could be more self-sufficient, and could deal with more matters internally. Items highlighted by the Auditor-General (AG) included problems with tangible assets, large amounts spent on buildings, which had not been supported with adequate proof of spending, and procurements without sufficient proof. He noted that the accuracy of the asset register was of vital importance. There had to be internal controls and sufficient documentation for everything, and policies for the day to day running of the Department had to be put in place. There also must be service level agreements with the Department of Public Works. The Standing Committee on Public Accounts (SCOPA) had recommended better monitoring and control. The financial statements had been materially amended. In addition, the medical aid contributions had not compiled with the SCOPA recommendations.

The Chairperson noted that the Committee also did not want to keep hearing continuing reports on overcrowding. Section 7 of the Constitution related to overcrowding and the non-compliance with legislation in this regard must be addressed, and strategies found to overcome the problem.

Auditor-General (AG) briefing on the Department of Correctional Services (DCS or the Department)
Mr Solomon Jiyana, Senior Manager, Auditor-General of South Africa, said that the financial statements were subject to material audit. There had been a qualification in the audit report for the Department around tangible capital assets. There had been adjustments to opening balances. There was an absence of audit evidence for building work that was done.

Mr Jiyana noted that SCOPA had insisted on an accurate asset register. The Department had to some extent addressed system shortcomings. Training courses had been conducted on the LOGIS asset reconciliation. A project had been launched to chase and capture assets. There had been training sessions for asset disclosure. The monitoring and ongoing asset management was not yet effective, but there had been improvements. Implementation of the new LOGIS system presented challenges. There was progress, but systems were not yet fully fledged and functional, and the SCOPA resolution on asset management had not yet been sufficiently implemented. 

Mr Jiyana noted that the DCS had failed to comply with legislation around overcrowding for some years. The justice system had to implement certain processes. The Department was, however, developing a framework for awaiting trial detainees (ATDs). He further reported that, to date, it had not been necessary to take action against corruption insofar as this Department was concerned.

Department of Correctional Services (DCS) comments
Dr Jenny Schreiner, Acting National Commissioner of Correctional Services, said that the DCS felt comfortable with the progress made. The transfer to LOGIS would only become fully effective in the following financial year .

In regard to overcrowding, she noted that this was a problem that could not be solved in a single year. Work in addressing the remand and detention systems would allow the Department to better address the problem. It was a challenge to equip managers to understand the documentation process, seeing that the Department’s officials were so scattered. An action plan was being developed.

Mr Teboho Motseki, Deputy Commissioner of Correctional Services, said that the Department had been requested to provide better evidence to support its figures. Part of that work had been done. There had been interaction with the Department of Public Works around service level agreements, which could be finalised in the near future. The Office of the Auditor-General (AG) would sit with the Department as it developed an action plan. The Department’s ability to respond on time could improve. He was also satisfied that there had been improvement regarding SCOPA issues.

Discussion
Ms W Ngwenya (ANC) enquired how far the remand-attention process had proceeded.

Ms F Nyanda (ANC) pointed to a lack of internal control in the Department, citing the information that information was not well managed and clear documentation was lacking. She asked if there was any clarity as to who was responsible for this.

Comm Motseki noted that 36 centres of excellence had been established over the preceding three years. The DCS monitored and improved those. Non-compliance was monitored.

Ms M Mdaka (ANC) referred to the massive amount recovered from Medcor, stating that there had been no disciplinary action instituted, and she therefore wanted to know where the money had been, and what exactly had happened.

The Chairperson echoed the surprise of Ms Mdaka that there had been no disciplinary action regarding R5 million recovered from Medcor.

Mr J Selfe (DA) remarked that non-compliance with Section 7 of the Constitution went further than overcrowding itself. There were a series of regulations around minimum standards that, for the most part, had not been complied with, and he enquired why those had not been picked u during the audit.

Mr A Fritz (DA) ventured that the Committee had to monitor and regulate the Department also at the regional levels. He asked how successful the meetings to address overcrowding had been, and whether there were specific figures and records of cases actually dealt with.

The Chairperson agreed that there should be procedures followed that actually showed whether there had been compliance.

Mr Musa Hlongwa, Business Executive, Auditor-General of South Africa, said that the AG’s expectations in regard to compliance related to financial statements. However, there were also regulations with which the Department must comply. Overcrowding impacted on funding. It was in the public interest that progress on these issues must be speeded up.

He noted that, from the point of view of the AG, the qualifications centered around financial documentation, and most were related to the safekeeping and recalling of transactions. The DCS had to be scrupulous about making sure that all documents of all transactions were kept, and that all transactions were properly recorded. Wherever no records had been kept, there would be qualifications. There had to be proper monitoring and control.

Mr Hlongwa urged that in respect of Medcor, there was a need to understand what processes had led to the fact that money had to be recovered. He said that it was important that the DCS must source skilled people to deal with such matters, to prevent such incidences from recurring.

Comm Motseki explained that the DCS had its own medical scheme in the past. During the transfer to Medcor, payments had been made for people who had in fact passed away, and who had not been accounted for. The DCS now required life certificates. There was cooperation with the Department of Home Affairs to verify member status and to update records. Currently, the Department paid on an expenditure basis, based on invoices from medical practitioners. There had not been disciplinary action following the matter coming to light, because the Department had no real proof of deliberate maladministration. If such evidence did come to light, the DCS would follow through.

Comm Motseki said, in regard to overcrowding, the DCS had a legal responsibility to provide accommodation. Not all correctional facilities were equally overcrowded. A process of reclassification had been embarked upon, whereby maximum security prisoners would be moved into medium security facilities, and medium security prisoners would be moved to low-security facilities. This reduced pressure on facilities. Surplus prison populations were moved to other centres, so that people were distributed across provinces.

The Chairperson advised that overcrowding issues should be set aside for the moment. He wished to appeal to the AG that public interest should not be taken as the basis for qualifications. The DCS, on its own, could do very little about overcrowding. However, it was imperative that the DCS improve its documentation, as it could not afford to keep on receiving qualifications.

Mr Fritz stated that he differed in his view on the financial implications of overcrowding. In his opinion they were considerable. The DCS should have put measures in place, and he felt that it was quite correct for the AG to enquire about adherence to such measures.

The Chairperson urged that issues of overcrowding receive attention in the Criminal Justice Review. He drew attention to the fact that the AG had raised the overcrowding issue because of public interest. However, this was an issue in which the whole criminal justice cluster, including the South African Police Service (SAPS) and the Department of Justice were implicated. Police arrests that were not finalised in Court contributed significantly to overcrowding. The AG had to direct its efforts to help rehabilitate the DCS.

Mr Jiyana remarked that he was not aware of any performance audit or study that had looked at the impact of overcrowding from a cluster perspective. Court delays and incarceration had been considered in terms of impact, but never from a finance perspective.

The Chairperson remarked that overcrowding remained a contentious issue. The Criminal Justice Review could help to resolve matters. The Committee simply did not want to get a shock when it saw the AG’s final report, and would prefer that proactive warning indicators be identified instead.

DCS Quarterly Report
Comm Motseki noted that the quarterly report reflected that there had been underspending in some areas, and overspending on security, due to the payment of overtime. The institution of the 7-day establishment would rectify this. Under spending was related to Corrections, Development and Care, and facilities.

He explained that two thirds of the DCS budget went towards employee compensation. The bulk of DCS work was carried out directly by personnel. The challenge lay in the correct allocation between programmes, and in deciding how much went to goods and services, and how much to people.

The budget on facilities had to be spent fully. Measures instituted to save money included the fact that DCS would no longer be issuing uniforms to officials whose position did not require this, procuring supplies only as they were needed, and less investment in marketing.

Comm Joey Coetzee, Deputy Commissioner: Operations, DCS, indicated that he would discuss the various programmes in terms of regulatory and monitoring strategies. In regard to programme administration, he noted that Public / Private Partnerships were being entered into. LOGIS manuals had been made generally available, and officials were being trained in the use of the system. Debt management included adhering to a 30-day payment schedule. Strike management committees had been formed.

The hunt for scarce skills had been intensified. Occupation Specific Dispensation (OSD) for correctional officers was instituted. Data integrity with regard to human resources (HR) was being pursued. 625 bursaries had been awarded. Legal services procedures included a fraud prevention plan. There had been an audit of research capacity, geared towards research on parole boards. A Remand Detention and Offender Management System (RDOMS) contract was signed. PERSAL personnel data integrity was receiving attention. HR related- and health and wellness programmes were running. Disciplinary hearings were finalised and compliance inspections were held.

With regard to security, Comm Coetzee noted that the security inspection manuals were revised. There had been eight escapes, which constituted a 0.5% escape rate, better than the 1% target. Nine unnatural deaths had occurred, two of which were suicides. Levels of assault remained high. There had to be better training for security incidents. In regard to corrections, he referred to a female offender trend analysis, and a document on remand attention. Correctional sentence plans were in place for 6 720 offenders.

With regard to Social Reintegration, he noted that admission and release information on offenders was being improved. 9 565 parole violations had been recorded.

Comm Coetzee again referred, in regard to facilities, to the service level agreement with Department of Public Works. He said that 10 parole board office venues had become available.

He noted that there was implementation of skills development, and Early Childhood Centres (ECCs) were being established. 10 574 offenders were involved in literacy programmes, and 14 317 were in skills development programmes. 10 000 offenders were involved in mainstream education.

In regard to inmate care, food and services guidelines were developed, which looked at dietary prescriptions for pagans and Muslims, among others. Psychologists were together working with the South African National Council against Alcoholism (SANCA) on workshops around alcohol and drug abuse. There had been a survey of offender sexual abuse. The Department was striving towards establishing primary health care in centres, in partnership with stakeholders.

Comm Coetzee mentioned that budget constraints prevented sufficient training. The Department was in competition with other entities for scarce skills. There was also a lack of expertise for the development of programmes.

Discussion
Mr S Abram (ANC) noted that according to slide 36, offenders were involved in agricultural production. He asked if offenders were at all keen on skilling themselves in such areas as animal husbandry, noting that this was a scarce skill. He said that in this way meat, fruit, chicken products and so forth could be produced. He asked if there were plans for increased egg production, which would not require extensive infrastructure. The production of vegetables could also contribute to self-reliance in food provision. He asked what type of production workshops. were referred to in the presentation.

Ms Subashini Moodley, Chief Deputy Commissioner: Development and Care, DCS, noted that there were ten wood workshops and others for work in steel and textiles. Although the DCS encouraged animal husbandry and livestock production, offenders were inclined to favour crafts such as upholstery over agriculture. She noted that at present, meat, eggs, milk and pork were produced. Self-sufficiency varied from 20% to 90%, depending on the product. Partnerships for skills development were entered into, especially with the Departments of Education and Labour. Moral upliftment was catered for through spiritual care groups, hotlines and cooperation with non governmental organisations (NGOs), such as Lifeline.
 
An ANC Member enquired about the causes of delays in bidding, and asked whether there was any loss occurring through corruption.

A DCS delegate noted that it could take time to raise the necessary funds required for a bid. However, ad hoc evaluation committees were established for the duration of a bid, to deal with all issues around the bid. Such committees met regularly on scheduled dates.

Ms Ngwenya remarked that oversight could not be confined to observing and spending. She asked what kind of goods and services had been procured, adding that there must be procurement principles and a review of services.

A Member enquired about the moral upliftment of offenders.

Ms Nyanda asked how many women and disabled persons were employed, and whether the posts for nurses, pharmacists and social workers were properly advertised. She noted that visits by the Committee to the facilities had highlighted the shortage of such qualified personnel.

A Member suggested, in regard to vacancies within the Department, that details should be made available to the Committee, who might be able to assist in having these vacancies filled.

The Chairperson noted that the Department must still tell the Committee how many suspended officials were still being paid while their cases were still pending, although they were not actually working.

Mr Alfred Tsetsane, Chief Deputy Commissioner: Corporate Services, DCS, stated that a detailed list of vacancies would be supplied at a later date. The same applied to a list of suspensions. Any suspension of longer than 30 days would be reported to the Committee. During the reviewed quarter, three extensive and widely circulated advertisements for vacancies had been placed.

Another DCS delegate gave the undertaking that employment of the disabled would be dealt with in writing.

Ms Mdaka asked what was meant by the statement that research projects on parole boards were on track.

Comm Motseki remarked that the current parole system had been established in 2005, with boards consisting of community members. Research had been undertaken, looking into whether the parole boards were functioning according to legislation, and whether the DCS was getting the results it wanted. An internal research directorate was responsible for the research.

Ms Mdaka desired an explanation of what an anti-gang strategy implied.

 Mr Motseki pointed out that round table talks with NGOs had taken place. A task team had been assembled to make inputs into a draft document.

Ms Mdaka asked when a three-meals-a-day, every day, system would be in place across the board. She asked for more information about unnatural deaths.

The Chairperson also required more information on unnatural deaths, especially those who had committed suicide, and asked how this had been allowed to happen.

Dr Schreiner remarked that unnatural deaths referred to deaths through assault or illness, and that details would be furnished later.

The Chairperson reiterated that it was important to know exactly how the suicides had occurred.

Mr Motseki replied that one prisoner had used a cord to strangle himself. Another method that had been used was that an inmate had stashed his sedative medication and then taken it all in one dose. Cells had been set alight. DCS staff had in the past also reacted to gang fights in a manner that resulted in death.

The Chairperson advised the Department to standardise information around the incidences of death.

Ms Mdaka asked, with reference to the high number of assaults, if there was anything like a panic-button or early warning system in place.

Comm Motseki said that no early warning system for assault existed. The matter could be looked into. The decision to install security cameras inside facilities came down to weighing the rights of offenders to privacy against their own security. Many assaults occurred at night. Allegations of assault were investigated, but there was often a gap between what had been alleged and what had actually taken place. He conceded that investigation and conclusion on the allegations still proceeded too slowly.

The Chairperson referred to the implication, in Slide 33, that the service level agreement with Department of Public Works had escalated to a Ministerial level, and asked whether this agreement had actually been finalised.

Comm Motseki noted that the commitment to a service level agreement by the DPW had been made in May. The DCS was satisfied with its own inputs in that regard.

The Chairperson asked if the Department could respond in writing, to questions about procurement of goods and services, within 7 days.

Dr Schreiner agreed that detailed statistics would be required, and that these would best be dealt with in writing.

The Chairperson asked if Slide 26 referred to mitigation or litigation.

Dr Schreiner replied that it referred to the tracking of performance indicators on mitigation. Managers had to be trained to take defensible decisions.

A Member ventured that safe custody for inmates had to be a central concern for DCS, not a peripheral one. He thought it possible to reduce escapes to zero. He asked where the Department was headed with respect to gangs.

Mr Fritz requested that assault figures be broken down according to those that involved personnel on inmates, and those that occurred between inmates.

Mr Fritz, referring to previous questions, noted that it should be possible for the Department to intervene in preventing suicide.

Mr Fritz asked that details of travelling arrangements be supplied to the Committee. The economic climate argued against attendance of officials at a variety of sporting and cultural events. He wanted to know who would be travelling, and where they would be going.

Mr Abram asked for further details about food procurement. He noted that there was a tendency to go to established concerns and big names, whereas emergent producers should be nurtured. He stressed again that there had to be self-reliant centres where agricultural activities were to take place. He asked what effort the DCS had put into getting offenders interested in farming, and suggested that perhaps the Minister could speak to them about it.
 
The Chairperson asked that there be a list of capital budget expenditures like fencing provided. He also asked, in regard to the fixed asset register, whether the DCS could say that there was at least some light at the end of the tunnel.

Mr Motseki replied that the Department could commit itself to have the LOGIS system up and running by the end of September. The problem with the fixed asset register was that the assets to be declared were constantly changing. There were also categories that were confusing, like biological assets.

The Chairperson replied that the AG could provide clarity on those, and quipped that they could decide whether a cow was a biological asset and whether it could be slaughtered and put on a braai without having to declare this.

Outsourcing issues: Departmental briefing
Comm Motseki said that functions were outsourced to gain access to expertise that was unavailable internally. The DCS had problems with skills retention, and outsourcing could enhance effectiveness. Methods employed were chiefly public/private partnerships and conventional procurement.

He noted that the Minister had suspended the Public/Private Partnership (PPP) process of building correctional service facilities, but that the catering and training services were outsourced. The DCS lacked own capacity to train managers. Other outsourced items included a survey conducted on organisational culture, cleaning services, and supply delivery. He noted that the benefits of outsourcing were that this contributed to capacity building, enhanced service delivery, and made risk transfer possible. Procurement systems were improved. There were bid adjudication committees that had to decide whether the passing over of bids was justifiable.

Discussion
Ms Ngwenya commented that the Department had to provide a clear report on such matters as staff shortages for critical needs, and the lack of a computerised meal planning system, so that the Committee could render assistance.

Ms Ngwenya asked for what period of time the Minister had suspended the PPP project.

Mr Fritz referred to the statement that catering outsourcing enhanced service delivery, and asked whether the Department had thoroughly evaluated service providers. In regard to PPP projects, he ventured that a 25 year contract was simply too long.

Mr Fritz commented that money had been spent on training of managers, but asked whether there was any way in which returns on that investment could be measured.

The Chairperson said that he was perturbed about outsourcing, and had been very disturbed by some of the figures. For instance, Slide 46 had shown that R839 million had been spent on outsourced catering over a period of 36 months. This came to R23 million per month. He asked who was providing the services and why could the Department not invest internally for this function. He also noted that Slide 47 indicated that R20 million had been spent on outsourcing of internal audits. He found that to be unacceptable, and commented that this amounted to paying out good money instead of good training. He asked what the training of junior and middle management actually comprised.

The Chairperson then noted that Slide 50 indicated that R1.1 million had been spent on an outsourced study to determine the feasibility of outsourcing. That verged on absurdity. It should rightly have been a management decision. In addition, R2.5 million had been paid for cleaning services for headquarters over two years.

The Chairperson urged the Department to talk seriously to the Committee about all of these matters. He then noted that over 48 months, R50 million had been paid for maintenance of surveillance cameras. A further R159 million had gone towards the maintenance of televisions, which amounted to R5 million per month, and he enquired what kind of maintenance was required for television sets.

The Chairperson expressed his concern that a further R20 million had been set aside for the payment of a transaction advisor for PPP. Eventually the Minister had suspended PPP. He asked whether the transaction advisor had been paid.

The Chairperson said that the presentation had stated that the purpose of outsourcing was to enable the DCS to focus on core business. However, he pointed out that there was outsourcing of fencing and monitoring of perimeters, which could be taken to fall squarely within the core business of the Department.

He told the Department that the meeting had provided an overview of matters that the Committee was concerned about, and said that the Department could return to deal with those issues. The Committee was very concerned about the issue and Members were within its rights, as lawmakers, to advise that there should be curtailment of outsourcing. He noted that these matters should get a written response from the Department.

The meeting was adjourned.

Adoption of Committee plan
The Committee dealt with the consideration and adoption of its five-year plan in a closed session.

Present

  • We don't have attendance info for this committee meeting

Download as PDF

You can download this page as a PDF using your browser's print functionality. Click on the "Print" button below and select the "PDF" option under destinations/printers.

See detailed instructions for your browser here.

Share this page: