Department of Correctional Services on its 2010/11 Annual Report

Meeting report

Department of Correctional Services (DCS) on its 2010/11 Annual Report
Mr Tom Moyane, DCS National Commissioner, said by way of introduction that he and the Chief Financial Officer had taken up leadership during May 2010, and had done the best they could within the given confines. They had wanted to raise the bar, and had not been happy with the qualified audit received. Serious challenges had been addressed with the Auditor-General (AG) on 15 May. The dashboard process had pointed out challenges of leadership, governance and performance information.

Mr Moyane continued that there had been a change in the issues that had led to qualification. Targets had to be set around what was clearly deliverable. Weaknesses had to be identified. Mr Moyane assured the Portfolio Committee that there was currently a leadership core that was responsible and accountable. Firm commitments had been made. There were transversal challenges that resided with the National Treasury. A clean audit would yet be achieved. Much work had been done, and there had been improvement.

Ms Jenny Schreiner, DCS Chief Deputy Commissioner: Operations and Management Support, stated that achievements for 2010/11 included increased participation of inmates in development programmes, partly as result of partnerships with stakeholders. Overcrowding levels had been reduced by 5.75%. Challenges were constraints in human resources, inadequate staff for the shift system and the loss of scarce skills.

There was under expenditure in the Administration programme, and unauthorised expenditure. There was a vacancy rate of 12.6%. 421 out of 771 grievances had been finalised.

Figures for assaults had increased, because the DCS had identified a problem of underreporting in previous years. In the Corrections programme, there was enhanced collaboration with the Criminal Justice System. There was a draft policy on remand detention, and an offender labour policy had been approved. There were more inmates receiving anti-retroviral treatment. Challenges included the vacancy rates for social workers, psychologists, nurses and medical practitioners. There was a decrease in the number of offenders participating in literacy programmes. Under the Social Reintegration programme, there had been a decrease in the number of parole violations. 2880 new bed spaces had been created.

Ms Schreiner noted that an adverse opinion regarding performance information had been received for the second year. Variance between planned and actual reported targets had been found. There was no logical link between reported objectives, indicators and targets.

Mr Siphiwe Sokhela, DCS Chief Financial Officer, noted that there had been underspending to the tune of R728 million from a budget allocation of R15,4 billion. Underspending in the Administration and Security programmes had been due to advertised posts not filled. The same applied to the Care programme, where the outstanding OSD for psychologists also contributed. Underspending in the Development programme had been due to low spending on agricultural materials. In the Facilities programme, it had been due to delays in the construction of facilities, because of Department of Public Works delay in appointing consultants and implementation of projects.

The DCS had received a qualified audit report due to opening balance of assets; existence of assets; valuation of assets, and misclassification of assets. Non-cash additions had been overstated by internal transfers between stores. LOGIS was being amended to properly account for internal transfers separately. There had been unauthorised expenditure to the amount of R483 million. The DCS had appeared before SCOPA. The R483 million would be funded from projected 2011/12 underspending. There had been material losses of R3,387 million. Damage to state vehicles accounted for R2,922 million. Regions were currently reporting on losses on a monthly basis. Posts in finance had to be filled with qualified people.

Discussion
The Chairperson addressed Mr Moyane on the matter of leadership. He told Mr Moyane that he had to find a way to deal with his management team, or risk being exposed. He referred to page 52 of the Annual Report, where the target was set of consulting with stakeholders and the Portfolio Committee about White Paper objectives. On 10 August the Minister and himself had addressed a gathering at Wits University. He had never seen the Minister so embarrassed. Everyone wanted to know where the White Paper was. The Minister had said that it had been consulted widely, but the DCS said that it was still being edited. The DCS had claimed to have discussions with stakeholders and the Portfolio Committee, which in fact did not happen.

The Chairperson referred to page 226 of the Annual Report: 159 consultants had been employed at a cost of R1,3 million. It had occurred to the Committee that the DCS might have to be outsourced. It was unacceptable for the DCS to be run by consultants. He then referred to donor funds. A moderator had been employed for four days, and paid R359 000. That came to R90 000 a day for a moderator. He told Mr Moyane that his department was selling him out. An instructor had been paid R83 000 a month for teaching people to do plumbing. Ms Schreiner had made mention of underspending on artisans, yet R83 000 per month had been spent in that instance. Senior management was outsourcing and privatising the DCS. 300 people managed DCS, yet bonuses of R80 000 were being paid. He told Mr Moyane to find a way of dealing with his staff. Consultation fees for IT had been horrendous, amounting to R24,6 million the previous year. Currently the DCS wanted to put that on hold.

The Chairperson continued with regard to leadership, that pages 221 and 222 of the Annual Report referred to theft, bribery, fraud and corruption. Page 224 referred to failure to carry out lawful orders; page 50 to sleeping on duty; page 110 to using drugs on duty; page 36 to possession of drugs, and page 17 to falsification of documents. The DCS was a security cluster department, and people were sleeping on duty and supplying others with drugs, failing to carry out instructions, and falsifying documents. 88 out of 211 charged, had been dismissed. He asked what sanctions were employed regarding the 14 sexual acts referred to. To his mind, people who slept on duty had to be not only dismissed but arrested as well. As long as such things were happening, there could not be talk of leadership. Outsourcing staff were getting away with murder. The Departmental Investigations Unit (DIU) had to speak to the Committee. Leadership was being outsourced.

Mr J Selfe (DA) remarked with regard to a million rand being paid for a plumbing instructor, that intervention was needed. There was a 56% vacancy for finance staff. That affected the quality of the Auditor-General Report. He asked what steps were being taken to fill those positions.

Mr Moyane replied that in the past there had been a tendency to appoint people to finance positions if they could say one plus one is two. The DCS were recruiting interns that it would strive to retain, in finance and human resources. An unprofessional system had been inherited. It affected finance standing and reporting. Expert finance skills had to be recruited for the regional level. It was not feasible to recruit internally. The CFO had visited all the regions to assess capacity. A standard procedure of recruitment was needed.

Mr Selfe continued that officials were not doing their jobs. There were misconduct cases every year. He referred to vetting figures on page 48 of the Annual Report. 2 478 DCS officials had been vetted, and 40 286 not. That was unacceptable for a security cluster department. He asked about the DCS statement that National Intelligence had been capacitated for vetting.

Mr Moyane conceded that vetting was the albatross round the neck and the Achilles heel of the Department. It had calcified in the DCS. The National Intelligence Agency (NIA) could be blamed, but the DCS could do first line checking on its own. He agreed that it was impossible to win with unvetted people. Of the 2 000 people recruited the previous year, 62 had turned out to be security risks. Dealing with vetting for 40 000 people was a hard task.

Mr Selfe remarked that if the DCS wanted to look for finance professionals, they ought to be visiting campuses at the current time of year. He asked about problems with the shift system. Over the preceding five years, DCS staff had increased from 32 000 to 41 500. Yet everyone kept saying that there were not enough warm bodies on the ground. Staff vacancies were lowest in the area of security. High-level skills were the problem.

Mr Selfe referred to page 222 of the Annual Report, that showed 1 418 people had been repeatedly absent. It seemed to him that the problem with the shift system was not on the supply side, it was a management problem.

Mr Selfe continued that electronic monitoring was said to be on track every year. Judges lacked confidence in non-custodial sentencing because the DCS could not track probationers and parolees. There was no information to indicate whether staff-on-inmate violence had gone up. Ms Schreiner had mentioned interventions. There had been recent publicity about St Albans, where the UN Torture Convention had been violated.

Mr Moyane responded that electronic monitoring was not a panacea. There were tender companies, time lines and bill evaluation. The process was on course. He requested that the DCS be granted time, and that the matter be raised again at the end of the year.

Ms Camagwini Ntshinga, DCS Deputy Commissioner (Internal Control and Compliance), responded that the definition of assault had been expanded to include inmate/inmate and official/inmate assault. An environment was being created for inmates to lodge complaints. Vulnerable groups were separated.

The Chairperson asked what was being done to stop assaults. Assaults were occurring after hours, especially over the Christmas period, when there were only skeleton staff due to Operation Vala. He asked how it could be eradicated. Numbers had gone up. He asked for ideas.

Mr Moyane responded that a principled response was called for. High incidence of assaults indicated laxity of security measures, due to poor management. Increase in assault was also due to overcrowding, which caused more irritability. Shortage of staff exacerbated the matter. The DCS needed assistance with staff shortages. There had to be a move away from bandaid solutions to sustainable processes. Public discourse about closed circuit television was part of the process.

Mr Selfe agreed that irritability was a factor. It increased over Christmas time, during Operation Vala. He asked if it was true that Independent Prison Visitors (IPVs) could not gain access to prisons during that period.

Mr Moyane responded that he would investigate the matter of access denied to IPVs. Reasons would be found.

The Chairperson remarked that South Africa was a signatory to the UN Convention on Torture. If it was broken, answers were needed. The treaty was being broken every day. Distinctions did not matter, the question was how to ensure that no torture took place. If there was assault, it was torture. An answer had to be supplied during the term of the Committee.

The Chairperson noted that time lines for electronic monitoring were important. There were five months to go before the end of the financial year. He urged that there at least be a pilot rollout by the end of that year. He asked if adjudication had been sorted out.

Mr Moyane replied that that was indeed the plan. The service provider would be identified. IT capability was being ramped up.

Mr L Max (DA) noted that the DCS had already needed a staff level of 60 000 in 2003/04. Projected funding in March 2010 provided for 40 953 members. Inmates had increased and the DCS was still at 20 000 below the required staff complement. Page 108 of the Annual Report indicated that there was inadequate staff for shifts, because of the migration to centre-based positions. Staff was overstretched in a number of places, which caused more absenteeism.

Ms W Ngwenya (ANC) referred to the Care programme, on page 60 of the Annual Report. She said that the report was misleading. There were 134 000 in social worker programmes.

A DCS Deputy Director replied that both remand detainees and sentenced inmates had access to social work programmes.

Ms Ngwenya referred to the amount of R2,9 million worth of state vehicles written off. The Annual Report mentioned that money had been taken from all programmes and moved to Administration. She asked what had been done to officials who had damaged state vehicles. A budget could not be passed if reports like the current one continued to be received.

Mr Sokhela responded that they had not seen sanctions against officials with regard to vehicles written off. Policy was being revised, a circular had been issued that stated what would happen to those who damaged state vehicles. Files declared a write off, but if one could get to the bottom of it, more might be going on. Some files had been sent back to investigate what sanctions could be employed. Cases had been opened for car damage. Number plates had been changed. When there was a follow up, the SAPS case would be seen to have been withdrawn. The problem was that if a driver had been approved to use the vehicle, he was covered. Sanctions would definitely be instituted.

The Chairperson said that there had to be performance indicators against the CFO. If nothing happened, he had to be sanctioned. It had to be placed in his performance contract. He asked for a copy of the circular.

Mr Max said that the changing of number plates was fraudulent. A case had to be opened. He asked what had happened to the fraudsters. It had been deliberate.

Ms Ngwenya asked about a time frame for the circular.

Mr Moyane said with regard to leadership, that there had been no sanctions when the CFO joined. There was an entrenched culture of information concealment cover up. Information was selectively supplied to the leadership. There was a damaged car scam to sell vehicles not seriously damaged. Whoever sat on the committee made the write-offs. Less seriously damaged cars were sold at auction. He accepted criticism, but hands had been put on deck. The DCS admitted corruption. Concealment was a serious problem. None of the management team had been privy to information that had surfaced in a Sunday Times report. Managers had to visit, it would no longer do to sit in offices and await reports. The DCS had to be streetwise and take cudgels to the fight. The suggested performance indicators for the CFO, had to be included for all. He had to place confidence in his team, or else micro-manage things as they crept up.

Ms Phaliso asked for a policy for vehicle thieves. Those who dealt fraudulently with damaged vehicles were exactly that.

Mr Sokhela replied that he had a draft copy of the circular. It would be distributed as from the following day.

Ms Phaliso asked how targets were set up. It was based on the previous year’s performance figures, which was questionable. The DCS did not say if targets had been met.

Ms Schreiner replied that the previous year’s baselines had to be used for setting targets. The DCS also considered its ability to deliver on targets. Targets had to be realistic. Management areas had to identify challenges.

The Chairperson remarked that if the previous year had been a lean year, there could not be movement forward. It would be better to be guided by best practice standards. R2,9 million lost due to damaged vehicles, could not be used as a standard. Targets had to be set in order to improve.

Ms Schreiner responded that targets were set for three-year processes. If the Department overachieved it would increase. Targets were adjusted at mid-year.

Ms Phaliso referred to page 253 of the Annual Report. She asked Mr Sokhela about underspending due to unfilled vacancies. She asked how often the DCS applied a counter for those who had resigned, and what measures were taken to get social workers and psychologists. There was no scarcity of people in those fields in South Africa. It was unacceptable that the DCS could not attract them. She asked about the Occupation Specific Dispensation (OSD) for psychologists.

Mr Sokhela replied that counter offers were made when people would leave. There was an all out hunt for people with especially legal skills. If necessary, people did not have to be started at the minimum notch.

The Chairperson noted that stakeholders had referred to poor working conditions. There would be one nurse to 3 000 inmates. Bandaid solutions would not do. There was a 51% vacancy rate for psychologists, and 56% for finance. People were leaving because of poor working conditions. Human Resources had to present a comprehensive retention strategy to the Committee.

Mr Moyane added that there were measures in place to attract scarce skills. The Chief Deputy Commissioner for Development and Care engaged with tertiary institutions to solicit internships from Unisa and Medunsa, among others. The DCS had to compete with other government departments. A robust strategy had to be developed. The DCS had to attract and retain.

Ms Phaliso said that in government there was one doctor for 40 people. In the DCS it was 1000. She would not work as a social worker with a caseload of 300.

The Chairperson noted that stakeholders had said, the day before, that lack of consultation with depressives could lead to suicide. Service was not being supplied. It amounted to being complicit by omission. Suicide rates could be reduced just by counselling. Benchmarks had to be supplied. The Committee had to be visited quarterly.

Ms Phaliso referred to page 40 of the Annual Report. She asked why the Image Turnaround funding bid had been declined. With reference to page 33, she asked which OSDs had not been approved, and what the stumbling blocks were.

Ms Promise Khumalo, DCS Deputy Commissioner (Communication), replied that bids were submitted to Treasury over the MTEF. Different OSDs had been implemented during 2009/10. Bid submissions had been reviewed. During the second submission, bids had been withdrawn, except for OSD.

Mr Max referred to grievances mentioned on page 28 of the Annual Report. About water conditions, he asked what the generic problem was.

Mr Max referred to proposals on page 31. He asked about the status of the shift pattern. There was shortage of staff and unions were unhappy.

Mr Max asked how previous underreporting of assaults had been determined. He asked about inmate labour, and the decrease in artisans.

Mr Max turned to staff debts of R2,8 million. He asked how such large amounts were possible, and whether it had been loans. The question was how such people had gotten into the Department.

Mr Moyane responded that the DCS would look into micro-lending, loopholes and monies owed.

Mr Sokhela added that recovery of debt was through monthly installments over a 12 or 24 month period. There was monthly monitoring to see if there was a drop in figures.

Mr Max asked why so much was owed.

Mr Sokhela responded that incapacity leave contributed greatly. People sat at home. The health care committee took a long to finalise cases. Officials would return from sick leave and the committee would decide to recover payments. Cases would be finalised soon.

The Chairperson remarked that there had been a R1,4 million write-off. If things carried on over a three year period, chances for write-off increased. He advised that the DCS claim from pensions and estates, before write-off. He asked for the real reasons why debts could not be recovered.

Mr Sokhela replied that the Treasury regulations required that there be an attempt at recovery before write-off. The DCS tried to recover and followed up, especially if the person was no longer with the DCS.

The Chairperson said that people got loans from banks with the DCS providing security. If the person failed to pay back, the bank would come to the DCS. He advised that the DCS do a check before signing a guarantee.

Ms Khumalo replied that there were cases dating back to the late 1980s. The Department had paid and the person had resigned. Due to weaknesses in the resignation procedure, such people had received pensions and gratuities. Home Affairs could help trace them. The DCS needed the ability to blacklist. There were some who had the means to pay.

Mr S Abram (ANC) asked about reasons for variance related to offender participation in agriculture. The 2x12 hour shift system was blamed for impacting on agriculture because there was a lack of available staff to supervise agricultural labour for security reasons. He found that a lame argument. There was a human capacity to explore alternatives. In some countries there were agricultural state companies that provided inmates who worked, with a percentage of the product. When he left, he had something to build on. If an inmate knew that he could earn a nest-egg, that could be an incentive, He had wronged society, but had worked. Such inmates should get something.

Mr Moyane responded that a trading entity had been established to sell the produce of artisans. The DCS had to go through Treasury with that. Agricultural produce could not have value because production was for self-sufficiency. There was currently only a gratuity, but if the Treasury approved, money would be accrued for them. He asked that shifts and variances be dealt with in the next discussion.

Mr Abram remarked that the trading entity was a good idea. The Committee was also a stakeholder. He disagreed about the value of agricultural labour. An agricultural worker who supplied food had to get a stipend. He advised that a value be placed on it, and that workers get paid.

Mr Abram noted that the Chairperson had pointed out inaccuracies in the Annual Report. The DCS had to remember that their Annual Report would go into libraries and even archives. The integrity of the document was questionable. Documents brought to Parliament had to be 100% impeccable. He found the amounts paid out to consultants incredible. The organisational pilot study had cost R7,5 million. One person was earning R116 000 per day. The private sector did not pay as much. He asked about the massive increase in performance awards.

Mr Moyane conceded that consultants were a sore issue.

The Chairperson opined that it was not just a matter of costs. It was also a political security matter. Outsiders owned the process. The Committee and the DCS had to decide together how to handle consultants. They were leaving with all the information. It was a political problem. He would raise the issue with the ANC. Political threats had to be discussed.

Mr Abram noted that six schools had been registered. He asked how many were female.

Mr Abram asked about the vetting plan, especially with regard to staff in the office of the Ministry. He asked about outsourcing and costs involved.

Mr Moyane replied that a requisite of the state was that it could not be outsourced. Police could do the first line of verification. Vetting was relative to positions occupied. The Ministry had been vetted the most.

Mr Abram asked Mr Sokhela about responses to the Auditor General’s findings. There were serious commissions and omissions. He asked what was being done to rectify matters. He said that he had empathy for DCS members. These were demanding tasks to perform. But there was a lack of commitment and feeling for the country. People guilty of misdemeanour and corruption did not deserve to be there. They had to be weeded out.

Ms Schreiner replied that there were action plans based on the AG findings. Those were monitored monthly. The Committee would be kept briefed.

Mr Abram protested that the slides on the AG findings were sketchy. The Committee wanted to know about actions and plans.

Ms Schreiner answered that plans would be made available.

Ms Ngobu replied that there were schools in KZN, Cradock, St Albans, Voorberg and Johannesburg. The DCS aimed at 13. There were as yet no female schools.

Mr Moyane apologised for the lack of integrity of reports. The turnaround regarding state vehicle thieves could take two to three years. There was no quick fix. Huge challenges were faced. The cultural level of concealment was understood. There had to be team building.

The Chairperson expressed concern about bonuses. The average had gone up to R8 000 from R2 000 the year before. There were lots of scarce skills around, but only some people were benefiting disproportionately. He agreed with Mr Abram that wearing the DCS uniform had to mean that one was committed to representing others for the good of the country.

The Chairperson concluded that the Committee would give a confidential report about matters in Mpumalanga. The DCS had to return on it, before it was made public. After the Committee oversight visit to Mpumalanga, people had received threats, and the Committee had evidence of that. The DCS had until the 19 October to familiarise themselves with the report.

The Chairperson adjourned the meeting.