DCS Audit Outcome & 2023/24 Annual Report; DCS Audit Action Plan; with Ministry

Meeting report

The Chairperson welcomed everyone to the meeting, which began on time. Special acknowledgements were made to the Minister of Correctional Services, Dr Pieter Groenewald, and the Deputy Minister, Ms Lindiwe Ntshalintshali.

She invited all attendees to introduce themselves, noting the presence of several new faces.

Mr Makgothi Thobakgale, National Commissioner, Department of Correctional (DSC), introduced the DCS delegation.

After all introductions by all present, the Chairperson proceeded to adopt the meeting agenda.

Apologies

Apologies were received from Mr E Cloete (ANC), who was unable to attend, and Ms B Diale (EFF), who would be joining the meeting later.

Opening Remarks

The Chairperson opened by explaining that the agenda points had been delayed due to unresolved disputes between the Auditor-General South Africa (AGSA) and the Department regarding the audit outcomes. However, she confirmed that the dispute had been resolved, allowing the Department to present its report.

She also informed the Committee that Ms Mbali Tsotetsi, AGSA Deputy Business Executive, could not attend due to commitments with the Standing Committee on Public Accounts (SCOPA). Instead, Mr Theunis Eloff, Senior Manager at AGSA, would lead the presentation.

Briefing by the Office of the Auditor-General (AGSA) on the Budgetary review and recommendations report (BRRR)

Mr Theunis Eloff, Senior Manager, AGSA, presented the audit outcomes for the Department of Correctional Services (DCS) for the 2023/24 financial year. He confirmed that the dispute between the Department and AGSA had been resolved.

Audit Opinion:
The DCS achieved an unqualified audit opinion with findings.

- There were no material misstatements in financial statements or performance reports.

- However, non-compliance with procurement processes resulted in irregular expenditure of R8 million due to bid splitting.

- Overspending on compensation of employees led to unauthorised expenditure of R641 million.

- Delays in investigating cases of irregular, fruitless, and wasteful expenditure persisted, though a service provider had been appointed to assist.

Ms Omphemetse Setebe, Senior Manager, AGSA, provided additional insights into the Department's Medium-Term Strategic Framework (MTSF) targets:

Achievements:

- Restorative Justice Programmes exceeded participation targets, achieving 14 844 victim-offender dialogues against a target of 4 700.

- Offender participation reached 4 498, surpassing the target of 3 500.

Shortfalls:

- Six out of 42 targets were not achieved, mainly under the Administration and Incarceration programmes.

- Infrastracture project delays, including bed-space expansions, hindered progress.

- The Integrated Inmate Management System (IIMS) rollout faced legal and procurement challenges.

Key Challenges:

- Inadequate project management for IT and infrastructure projects.

- Delayed procurement processes and understaffing in critical areas such as supply chain management and investigations.

- Overcrowding, with correctional facilities operating at a 48.47% overcrowding rate

Mr Eloff concluded the presentation with the following recommendations:

1. Strengthen controls to ensure compliance with procurement regulations and prevent order splitting.

2. Establish a robust information systems framework to improve operational efficiency.

3. Expedite investigations into irregular, fruitless, and wasteful expenditure, ensuring alignment with The Public Finance Management Act (PFMA) and National Treasury Regulations.

(See presentation document attached for further details)

Discussion

The Chairperson thanked the AGSA representatives and opened the floor for questions and clarifications from committee members.

Mr J Engelbrecht (DA) expressed his gratitude for the presentation, which the Committee had been eager to review. He raised critical concerns regarding the Integrated Inmate Management System (IIMS), highlighting its long-standing inefficiencies and failures within the Department of Correctional Services (DCS).

Mr Engelbrecht noted that IIMS targets had historically never been achieved, describing the project as dysfunctional despite significant financial investments. He cited payments of R260 million to a contractor and an additional R98 million to another, questioning the project's continued viability. He asked, “At what point does a project become too expensive in terms of both financial costs and lost time and opportunity?” Referring to the contract's origin in 2016, he emphasised that after eight years, the system remains incomplete and ineffective, suggesting it may be time to “cut losses and move on.”

He further commented on the broader implications of inefficiencies, particularly concerning remand detainees, which he described as outweighing other issues in terms of magnitude. He pointed to page 16 of the report, mentioning the use of sections 63A and 49G of the Criminal Procedure Act by the DCS to alleviate overcrowding. However, despite numerous parliamentary questions confirming this reluctance, he criticised the Department of Justice for its unwillingness to process such applications.

Acknowledging the legal principle that remand detainees are presumed innocent and cannot participate in rehabilitation programs, Mr Engelbrecht lamented their significant impact on resources. He stressed the need for collaboration with the Department of Justice and the National Prosecuting Authority to expedite remand detainee cases, freeing up space and allowing more sentenced inmates to participate in rehabilitation programs.

Mr Engelbrecht commended the Commissioner for improvements made under challenging circumstances, including budget cuts and high vacancy rates. He noted that while unresolved cases of irregular expenditure were a concern, many stemmed from procedural non-compliance rather than outright wastage. Nevertheless, he highlighted the pressing need for additional investigators to address the backlog of cases.

In closing, Mr Engelbrecht reiterated his main concern of the ongoing viability of the IIMS project. He asked for the Department’s perspective on whether continuing the system was still feasible or if an alternative approach should be pursued.

Ms K Kgobisa-Ngcaba (DA) raised concerns about a material irregularity detailed in the annual report, specifically regarding a late court judgment payment that incurred interest. The Auditor-General and the Office of the State Law Advisor had instructed the Department of Correctional Services to identify the responsible party, take disciplinary action, and implement internal controls. While the Department implemented internal controls, no action was taken to identify or hold anyone accountable for the irregularity.

She questioned why the Auditor-General considered the matter resolved when critical steps, such as assigning responsibility and imposing consequences, remained unaddressed. She emphasised the importance of accountability and expressed concern that failing to act on such matters effectively undermines efforts to manage the Department’s constrained budget.

Ms Kgobisa-Ngcaba requested clarification from the Department on why no action was taken and urged the Auditor-General to explain the decision to close the matter despite unresolved issues.

Response by the AGSA

Mr Eloff addressed the questions regarding the efficiency of the specific program, emphasising that the ongoing legal process must run its course. He stated that the Department would need to determine whether the other entity involved could provide the necessary information to complete the project. He described this as a critical decision that required strategic consideration by the Department.

Mr Eloff highlighted the importance of making strategic decisions regarding the project's future, including the allocation of funds and ensuring that systems are efficient. He referred to recommendations focusing on improving processes under legislative provisions, such as Section 49, and emphasised the need to reduce reliance on manual reporting processes to improve operational efficiency.

He noted that these recommendations aim to establish an efficient system that supports the Department's broader objectives. Mr Eloff also indicated that decisions regarding partnerships with other programs, such as those involving the Department of Home Affairs and other state entities, to align with the Department's strategic goals to ensure systemic improvements.

On the issue of accountability and consequence management, Mr Eloff clarified that the Auditor-General’s role is to provide recommendations to improve systems and processes, while the implementation of disciplinary actions or prosecutions falls under the Department's authority.

The Chairperson expressed gratitude to the Auditor-General and the AGSA team for their presentation and engagement with the Committee. She acknowledged the unqualified audit findings and noted the importance of the areas highlighted by the AG for the Portfolio Committee’s consideration in performing its oversight duties.

The Chairperson assured the AGSA team that the Committee would further explore the recommendations provided, particularly in preparing its final documentation and report on the annual findings.

She then announced a brief five-minute break to allow for logistical adjustments and connectivity arrangements before reconvening to engage with the Department of Correctional Services.

Overview of the 2023/24 Annual Report by Minister Groenewald

Minister Groenewald began his presentation with a light-hearted remark, joking that his speech could be very brief, as the matters under review preceded his tenure as Minister of Correctional Services, which commenced on 3 July 2024. He then provided a concise overview of the Department's performance for the 2023/24 financial year.

The Minister emphasised the Department's strategic execution of programs aligned with the National Development Plan (Vision 2030) and the revised medium-term strategic framework. The Department’s efforts focused on facilitating the reintegration of offenders into their communities, equipping them with skills to become law-abiding, healthy, and employable citizens, and providing restorative justice programs to rebuild their lives.

Regarding the late tabling of the 2023/24 annual report, the Minister referenced the Department's communication to the Speaker of the National Assembly and the Portfolio Committee Chairperson on 18 September 2024. Detailed reasons were provided for the delay, including amendments to the audit report, which was finalised by the Auditor-General on 25 October 2024. In compliance with Section 42 of the Public Finance Management Act (PFMA), the Audit Committee reviewed and adopted the annual report on 13 November 2024. It was subsequently tabled in Parliament on 14 November 2024.

In summarising the audit outcomes, the Minister noted that the Department received an unqualified audit opinion with no material findings on its financial statements, performance information, or consequence management. Audit findings were reduced by 31% compared to the previous financial year. However, he relayed that material non-compliance on expenditure management persisted due to delays in implementing preventative measures. Irregular expenditure was reduced by 31.9% between 2020/21 and 2021/22, by 79.7% between 2021/22 and 2022/23, and by 95.41% in the most recent two financial years.

He highlighted the Department’s prioritisation strategy, focusing on cases involving large amounts to reduce the overall financial impact. Regarding performance, the Department achieved 86% of its predetermined objectives, meeting 36 out of 42 targets. He noted that six targets were not met but encouraged members to review the details in the annual report.

In conclusion, the Minister reaffirmed the Department’s commitment to improving expenditure management and strengthening procurement and contract management through systematic planning, execution, and monitoring. He acknowledged ongoing challenges, including a high vacancy rate, funding constraints, and an increasing inmate population, but commended the Department for achieving an unqualified audit opinion with 31% fewer findings.

The Minister handed over to the National Commissioner for further presentation.

Briefing by the Department of Correctional Services on the 2023/24 Annual Report

Mr Makgothi Thobakgale, National Commissioner, Department of Correctional Services, introduced the officials who would guide the Committee through the presentation. Mr Joseph Katenga, Chief Deputy Commissioner: Strategic Management, DCS, would cover the first part of the presentation, and then Mr Lebogang Marumule, Acting Chief Financial Officer, would take over to discuss PFMA compliance and conclude the presentation.

Deputy Commissioner Katenga began by stating that he would not repeat parts of the presentation already covered by the Minister. He provided an overview of the presentation, focusing on a detailed performance analysis across key programmes, including Administration, Incarceration, Rehabilitation, Care, and Social Reintegration.

Mr Katenga highlighted the Department's performance achievements, including compliance rates among parolees, offender participation in skills and rehabilitation programs, and improved health outcomes, such as a 97% viral load suppression rate and a 96% TB cure rate. Challenges such as high vacancy rates, funding constraints, and delays in infrastructure projects were also emphasised.

Mr Marumule, CFO, provided an overview of the Department's financial performance for the 2023/24 financial year. He highlighted a significant reduction in irregular expenditure by 95.41% over the past two years. Despite facing challenges such as unauthorised expenditure of R614.4 million and delays in infrastructure projects, the Department exceeded its revenue target, generating R232.7 million. Notable achievements included high compliance in rehabilitation and restorative justice programs. However, the Department continues to deal with a high vacancy rate of 12.5% and an increasing inmate population.

Mr Marumule concluded by emphasising the Department's commitment to strengthening procurement processes and improving expenditure management. He stated that the Department is focused on addressing its operational challenges, particularly in infrastructure and staffing, to enhance long-term sustainability and operational efficiency.

(See presentation document attached for further details)

Discussion

The Chairperson thanked the presenters for their input. She invited the Minister and Deputy Minister to share any remarks on the presentation, but both indicated they had nothing further to add.

The Chairperson then opened the floor for questions from the Members.

Ms D James (Action SA) raised concerns about the Department’s lack of resources and specific programs addressing substance abuse among inmates, despite the high prevalence of substance use within the prison population. She questioned the absence of targeted initiatives to combat gang violence and highlighted the lack of reporting to the Central Drug Authority. Ms James emphasised the importance of improved screening and support systems for inmates with substance use disorders. She suggested fostering partnerships between community NGOs and prisons to assist with monitoring parolees.

Additionally, Ms James expressed concern about the insufficient programming for substance abuse treatment in correctional facilities. She stressed the need for more support groups within prisons and stronger linkages to NGOs to address substance use disorders and gang violence effectively. She also inquired about the lack of detailed information on the types of crimes committed by foreign nationals in prisons. She sought clarification on the Department’s processes for handling damaged vehicles.

Mr Engelbrecht began by pressing on the importance of comparing the percentage of targets achieved with the percentage of the budget spent. He noted that a significant discrepancy between these two metrics indicates potential inefficiencies and warrants deeper analysis. He acknowledged that the annual report reflects historical events and cannot be changed but stressed its value as a tool for improving planning and performance in subsequent years.

He highlighted the financially stressful context in the country, noting that prudent financial management is crucial, especially during times of budget cuts. Litigation costs were raised as a concern, with the Department spending R250 million over the past five years. He also questioned expenditures such as R37 million on hotel stays for officials and R59 million on consultation fees. He called for closer scrutiny of such spending, especially when resources are limited.

Mr Engelbrecht upheld the critical role of rehabilitation, care, and social reintegration in achieving the Department's mandate. He underscored the necessity of ensuring rehabilitation programmes equip former offenders with the tools to secure employment, reintegrate as functional members of society, and prevent re-offending. He observed that the current cycle of individuals repeatedly returning to Correctional Services reflects systemic gaps that demand immediate attention.

He acknowledged the challenges the Department of Public Works and Infrastructure (DPWI) faced, noting their financial constraints and recent openness to allowing departments to manage their own infrastructure needs. He proposed that the Department of Correctional Services (DCS) explore setting up its own infrastructure development and maintenance section, potentially under a Deputy Commissioner. While this would entail initial cost implications, he argued that it would lead to long-term savings and operational efficiency, addressing current inefficiencies where resources are wasted.

Mr Engelbrecht then turned to the potential of the electronic monitoring system, an initiative he described as promising but not fully detailed in the report. He inquired about the progress of its rollout, noting that it could result in significant cost savings and alleviate overcrowding. He suggested extending this technology to bail applications, which would require amendments to legislation but could significantly reduce the number of remand detainees, particularly for minor offences. This, he argued, would free up bed space, reduce costs, and address some of the Department's budgetary pressures.

Finally, Mr Engelbrecht raised the idea of revisiting the demilitarisation of the Department. He questioned whether there had been any study or analysis of the effects of this shift, suggesting that a militarised structure might be more efficient in promoting discipline, streamlining management, and improving overall operations.

Ms Kgobisa-Ngcaba raised questions on several presentation slides, seeking clarity and further details. She referred to the various categories of losses due to criminal conduct, damages, and other factors. She inquired about the Department's approach to investigations, asking whether these are handled internally or by external investigators and what measures are being taken to address these issues.

Ms Kgobisa-Ngcaba noted the overspending of R78 million on goods and services, including fleet services, attributed to high fuel costs, repairs, and maintenance. She asked for specific figures on how much was spent on vehicle repairs and maintenance and questioned whether purchasing new vehicles would be more economical. She further queried whether the vehicles in question were still serviceable.

She highlighted the overspending of R82 million on inventory, particularly farming supplies, due to delays in slaughtering animals. She expressed concern about the high cost and asked for a breakdown of how much of the R82 million was specifically related to the delays. She also asked about the causes of these delays and the actions being taken to address them. Additionally, she sought clarification on the overspending of R2.1 million under transfers and subsidies due to higher-than-projected service terminations, asking what this entails.

Lastly, Ms Kgobisa-Ngcaba noted the over-collection of R35 million from sales. She asked for details on what was sold, how the over-collection was achieved, and whether there are future opportunities to increase such sales.

Mr S Mwali (MK) raised several concerns regarding the Department's expenditure, performance alignment, and accountability. He began by questioning the Integrated Inmate Management System (IIMS), noting that while the Department achieved 9.54% progress, the project is reportedly on hold. He sought clarification on this status.

Referring to the Administration programme, he pointed out that while the Department spent 100% of its allocated budget, only 56% of the targets were achieved. He described this as a misalignment between expenditure and performance, emphasising that full budget utilisation should correspond with achieving all targets. He asked the Department to elaborate on this discrepancy.

On consultants, Mr Mwali highlighted a significant increase in spending, rising from R18 million last year to approximately R60 million in 2023/24, representing over a 200% increase. He requested a detailed explanation of what these consultants were engaged for and why the expenditure surged so dramatically. Similarly, he noted significant increases in spending on venues and facilities, as well as interest on rent and land, and asked the Department to justify these costs.

For the incarceration programme, Mr Mwali observed that the Department only achieved 86% of its targets. He reiterated concerns about expenditure and performance misalignment and requested an explanation for why so many targets were missed. He sought clarity on the specific challenges preventing the Department from achieving these targets.

On contractors and advisory services, he highlighted notable increases in spending and requested further details on what drove these costs. Additionally, he pointed out discrepancies between the number of natural deaths reported by the Department and those reported by the Judicial Inspectorate for Correctional Services (JICS). He called for an explanation to reconcile the differences.

Mr Mwali also addressed the audit outcomes, noting that the Department has maintained an unqualified opinion with findings for several years. He stressed that this situation is unacceptable and that the Department should strive for a clean audit. He emphasised that while financial records may appear sound, performance issues persist, with many findings stemming from inadequate performance management.

He raised concerns about fruitless and wasteful expenditure, asking whether investigations are aimed solely at reducing the reported amounts or also at recovering financial losses. He mentioned an example of partial recovery in one case and urged the Department to prioritise recovery efforts for larger sums.

On disciplinary actions, Mr Mwali expressed disappointment that there was no evidence of criminal charges being pursued against employees involved in illegal activities, particularly in cases like inmates using contraband mobile phones. He called for stronger consequence management, including criminal prosecution where warranted, to ensure accountability within the Department.

Mr M Moela (ANC) began by acknowledging the slight reduction in fruitless and wasteful expenditure compared to the previous year. However, he raised concerns flagged by the Auditor-General, particularly regarding the recurring issue of non-payment of suppliers within 30 days, as stipulated by National Treasury Regulation 8.2.3. He recalled the National Commissioner’s previous commitment to discipline officials responsible for delayed payments and requested an update on the progress made in implementing this measure. Specifically, he asked how many officials had been disciplined for non-compliance.

He inquired about the status of halfway houses, including the current number, their levels of capacity, and the compensation provided to these facilities.

On the issue of remand detainees, Mr Moela noted they account for 28% of the inmate population nationally, with the highest numbers in the Western Cape and Gauteng. He asked whether the Department has engaged with the judiciary to address the issue and sought an update on the progress of these engagements.

He also raised the persistent challenge of overcrowding, noting that the Department currently has a 48% overcrowding rate. He questioned the Department's failure to meet its renovation targets, which were identified as a contributing factor. He asked for a response on how the Department plans to address this issue.

Lastly, Mr Moela brought up the matter of state patients, which has been a subject of engagement with the Department of Health. He requested an update on the status of this process, noting that state patients contribute significantly to overcrowding in correctional facilities.

Mr M Sokopo (ANC) raised concerns about the more than 200% increase in consultancy spending compared to the previous year. He questioned the specific purpose of this expenditure and asked for clarity on the activities or services procured under this item.

On consequence management, he requested an update on the Department’s progress in addressing issues of accountability. He also asked about the status of halfway houses, specifically their current capacity and location, suggesting that the Committee may consider visiting them in the future.

He highlighted the importance of improving tracking and delivery systems within the Department, emphasising that systemic inefficiencies must be addressed to enhance operational outcomes.

Mr Sokopo concluded by stressing the need for stricter discipline and controls to improve overall performance. While he acknowledged the points raised by his colleagues, he reiterated the urgency of addressing inefficiencies and accountability gaps to ensure the Department meets its operational and compliance objectives.

Ms B Diale (EFF) inquired about the recurring issue of procurement of goods and services for amounts that exceed the allocated budget, noting that this has been a consistent problem year after year. She requested clarity on the pressing reasons behind this ongoing issue and asked for more details on the specific purchases involved.

She also questioned the consequence management processes, asking if anyone had been held accountable for this repeated issue. She pointed out the Department’s unqualified audit outcome for the fourth consecutive year. She questioned whether the Audit Action Plan truly addresses the underlying issues that lead to these recurring findings. Ms Diale expressed concern that despite the audit findings, the Department may not be implementing the necessary changes to resolve the problems.

Additionally, Ms Diale raised the issue of the vacancy rate, noting the ongoing problem with temporary compensation due to the high number of vacancies. She expressed concern about the long-term impact this would have on the Department's ability to operate effectively.

Mr W Plaatjies (ANC) expressed concerns about the ongoing issue of the lack of investigators, which the Minister had raised. He questioned the Department's timeline for hiring the necessary investigators, emphasising the need for a clear timeframe. He noted that while the Department has stated they are working on addressing this issue, there was no specific timeline given for when the hiring process would be completed.

He then shifted focus to infrastructure development, sharing his experience working closely with the previous Commissioner in the Western Cape on infrastructure projects. He mentioned that a medium-security prison for 500 inmates had been planned, but construction had not moved forward. He raised concerns about the reluctance to build new prisons and asked for clarity on why this approach was being taken.

Mr Plaatjies suggested that the Department explore partnerships with other spheres of government to acquire land, rather than continuing to pay for rented land and interest on land. He proposed that collaborative approaches could help secure land without incurring unnecessary costs. He further emphasised that the Department could benefit from a more strategic approach to land acquisition, reducing financial burdens associated with renting land.

Ms Kgobisa-Ngcaba added to her initial remarks by referencing the R137 million in fruitless and wasteful expenditure written off, seeking clarification on why this amount was written off and whether it was considered irrecoverable. She also inquired about the possibility of disciplinary action being taken in relation to this expenditure.

She then referred to the CFO's presentation, particularly the update on the R5.2 million and the status of related investigations. While the information was briefly mentioned, Ms Kgobisa-Ngcaba requested a more detailed breakdown of the current status of these investigations.

Regarding the issue discussed with the Auditor-General, where it was stated that no individual could be held responsible, Ms Kgobisa-Ngcaba raised concerns about the systemic failure that led to this situation. She asked for more clarity on what exactly happened if no individual was accountable and what specific systemic issues contributed to the expenditure being split in such a manner.

Ms Kgobisa-Ngcaba inquired about the transfers to households under the incarceration program, asking for further explanation on what this expenditure encompasses. Additionally, she asked for the total travel and assistance expenditure across all programs.

Finally, Ms Kgobisa-Ngcaba addressed the issue of staff bonuses, amounting to over R500 million. Given the financial constraints, she asked whether these bonuses were performance-based or contractual and expressed concern about whether the Department could afford to continue paying such bonuses.

The Chairperson welcomed comments from Mr Mpho Mathabathe, the Content Advisor to the Parliamentary Committee.

Mr Mathabathe began by highlighting key areas of interest for the Committee, particularly under the social reintegration program. He noted a significant decline in the number of economic opportunities facilitated for offenders, parolees, and probationers compared to the 2022/23 financial year. He suggested that the Committee might want to seek reasons from the Department for this decline.

He raised concerns over household expenses, pointing out that the Department spent over R5 million in the 2022/23 financial year but budgeted only R249 000 for 2023/24. He emphasised that if the previous year’s expenditure was significantly higher, the current year’s budget allocation should have been more realistic. He suggested the Committee seek clarity on why such a large gap exists.

On the issue of the IDT capital commitment, Mr Mathabathe referred to the reported R73 million reduction, which stemmed from the removal of eight sites from the maintenance budget. He asked for details about which sites were removed, the reasons for their removal, and who would be responsible for maintaining them in the absence of contracts.

Mr Mathabathe also drew attention to the decline in expenditure on medical supplies, from a significantly higher amount in the previous financial year to just R1.375 million in 2023/24. He expressed concerns about what caused this reduction and whether it would impact the quality of care provided to inmates. He queried what circumstances or activities occurred in the previous year that were absent in the current year, leading to such a sharp decline.

Finally, he questioned the 84% matriculant pass rate achieved by the Department. He asked for clarification on what the June winter camp entails within the correctional services context and how it compares to similar educational initiatives or activities outside of the prison system.

The Chairperson raised concerns regarding the increase in consultancy costs, which rose from R18 million to R59 million. The Chairperson requested clarity on the purpose of these consultancy services and asked the Department to provide a detailed explanation of what is being consulted.

The Chairperson sought an update on the arbitrator’s role in the dispute process and the progress of implementing projects affected by this arbitration. She questioned what is currently happening with the projects under arbitration and their timelines for resolution.

On the issue of official accommodation, the Chairperson highlighted the risks posed by the lack of accommodation. She emphasised the importance of having officials readily available during emergencies, questioning the progress of engagements with the Department of Human Settlements and municipalities to address these challenges. She also inquired about the outcomes of the mixed housing unit project, requesting an update on whether these engagements had started to yield results.

Regarding the AG’s findings, the Chairperson asked why unresolved issues that hinder the Department from achieving a clean audit are still being flagged as targets. She expressed concern about the continued challenges with the RP model asking whether it is completed and, if so, why it has not been rolled out to all centers.

On IDs for offenders, the Chairperson highlighted a large percentage of offenders who reportedly do not have ID numbers. She referenced a past program where Correctional Services collaborated with the Department of Home Affairs to address this issue and questioned why this programme was discontinued. She called for the programme’s reinstatement, emphasising its importance in ensuring accountability and tracking repeat offenders.

The Chairperson concluded by reiterating the need for the Department to address these issues and ensure that commitments made to the Committee are implemented effectively. She thanked members for their inputs and emphasised the importance of continued oversight to improve the Department’s operations.

The Chairperson addressed the logistics for the day, announcing that the Committee would break for lunch at 1:00 PM and reconvene at 1:50 PM. She stressed the importance of maintaining focus on the full-day programme and ensuring that the Department addressed all questions and clarifications raised by Members.

Minister Groenewald informed the Committee that he would not return after the lunch break due to scheduling constraints.

Some Members expressed their dissatisfaction.

The Minister responded by asserting that an ANC caucus had been held prior to the meeting, adding that he was informing the Committee of his departure rather than seeking permission.

The Minister further distanced himself from the annual report under discussion, stating that it was finalised before his tenure began in July 2024. He emphasised that he was not involved in the management issues highlighted in the report and therefore could not be held accountable for its shortcomings.

Some Members expressed their surprise.

The Minister reiterated his position before excusing himself from the session.

The Chairperson clarified the purpose and role of the Portfolio Committee, underscoring that it functions as a multi-party oversight body and not an ANC caucus. She addressed misunderstandings about recent Committee activities, emphasising that all decisions are made collectively by the Committee.

She reminded the Minister that the Department had requested a delay in tabling the annual report due to disputes, which the Committee had accommodated by rearranging its schedule. She reiterated that today’s meeting was specifically set aside to discuss the annual report, as agreed upon by the Committee and aligned with programming directives from the Speaker’s office.

The Chairperson also highlighted the Committee’s flexibility in deferring discussions on other matters, such as infrastructure progress and audit findings, to prioritise the Department’s presentation. She concluded by acknowledging the Minister’s decision to leave but urged the Department to remain accountable and ensure that Members’ questions were addressed comprehensively.

Response from the Department of Correctional Services (DCS)

The DCS provided detailed responses to the questions raised by Members, focusing on correctional programs, infrastructure development, electronic monitoring, and related topics.

The Department explained the difference between non-therapeutic and therapeutic programs offered to offenders. Non-therapeutic programmes, such as cultural and military initiatives, are facilitated in group settings by correctional officials. Therapeutic programmes, including substance abuse interventions, are delivered by social workers and psychologists through individual and group sessions. Metrics used include the percentage of offenders completing programs and receiving social services. Challenges such as machinery breakdowns and a shortage of officials contribute to delays and non-compliance with safety regulations.

The DCS highlighted its involvement with the Central Drug Authority, submitting quarterly reports to the National Drug Master Plan on offender participation in substance abuse programmes. Collaboration with the Department of Health continues to address psychiatric patient accommodation in correctional facilities, although challenges persist in certain provinces.

The Department outlined its progress with electronic monitoring devices, including challenges in tracking and IP numbers. Current plans include procuring devices from the open market to address functionality concerns. A service provider has developed a prototype device, which is undergoing testing. The Department plans to use these findings to seek approvals from National Treasury.

Updates on infrastructure development included new community collection offices and maintenance projects. The Department recorded an increase in bed spaces between September 2023 and July 2024 and is addressing overcrowding and maintenance backlogs through an action plan. Upcoming projects in the Western Cape were highlighted.

The Department discussed its diversified procurement strategy, including the appointment of new implementing agents like the IDP and the Development Bank of South Africa. Some sites were moved from the IDP to the Department’s own service providers to improve efficiency. Pilot projects for mechanical and electrical services are underway in the Eastern Cape, and contractors have been appointed for new staff accommodation projects.

The DCS emphasised its focus on anti-gang strategies, including dismantling gangs, preventing contraband, and implementing additional charges for offenders found with contraband. The Department acknowledged the inclusion of foreign nationals in its data and provided further categorisation details.

Despite certain achievements, the Department noted a decline in social reintegration programmes and economic opportunities for offenders. It emphasised the reliance on partnerships with NGOs and NPOs for support, although fluctuations in funding from sources such as Social Development and the National Skills Fund remain a challenge. Efforts are underway to strengthen these partnerships and address funding inconsistencies.

The halfway houses policy is currently under review, and new avenues are being explored, such as involving traditional leaders to provide accommodation for released offenders. These reviews aim to address capacity and funding issues, ensuring halfway houses play a more impactful role in offender reintegration.

The Department addressed its achievement of 9.54% progress in a project intended for 461 sites, explaining that implementation was halted after reaching 44 sites. The pause was attributed to resource constraints and operational challenges. The Department plans to refine IT indicators in the next strategic plan to ensure more effective project management and monitoring.

Questions about investigation progress were addressed, with the Department noting a reduction in consultant spending as more cases are resolved. Centralised contracts are being implemented to reduce irregularities and improve financial controls. Additional efforts are underway to investigate cases of overtime abuse by staff in management areas.

To improve efficiency, the Department is implementing initiatives such as producing uniforms in-house and reviewing offender meal plans for cost savings. Plans to further reduce private expenditure on uniforms and transition towards digitalised systems for cost-effective coordination were highlighted.

The Department reiterated the importance of discipline and respect among officials and agreed with calls for digitalisation and demilitarisation. A specialised task team is being formed to investigate crimes within Correctional Services, enhancing internal security and accountability.

The Department acknowledged challenges in providing accommodation and transportation for officials during temporary transfers. It emphasised the need for secure and cost-efficient systems, especially for transporting high-profile inmates, and discussed efforts to address vehicle maintenance costs.

The Department explained the process of slaughtering animals for offender rehabilitation programmes, noting standards that must be met to ensure offender health and safety. Additional costs for machinery and equipment were also noted as necessary investments to maintain program quality.

The Department responded to the Committee’s concerns regarding financial commitments and staff debts. The Department emphasised that provisions for outstanding amounts related to ongoing contracts extending into the next financial year would be made. Efforts are underway to ensure debt is managed effectively and staff members who fail to meet repayment obligations will face consequences, including salary deductions or legal action where necessary.

The reduction in irregular expenditure was highlighted as a positive development, with the Department centralising procurement processes and introducing stricter controls. However, the Department assured the Committee that those responsible for irregular transactions would be held accountable. The Department is committed to continuing these efforts and improving procurement to mitigate future risks.

The shortage of uniforms and its impact on officials was acknowledged, with the Department confirming that external service providers had been halted, and alternative solutions were being explored to ensure the dignity of staff is maintained. The Department is reviewing the uniform provision system to address gaps in supply.

The infrastructure challenges were also discussed, with the Department confirming that steps are being taken to address staff accommodation and the condition of correctional facilities. They are working on moving infrastructure projects away from Public Works to ensure timely and efficient execution. The Department emphasised that maintenance and repair of facilities remain top priorities.

The Chairperson acknowledged the improvement in the Department’s performance, which increased to 86% from 80% in the previous year. While this was recognised as positive progress, the Chairperson encouraged the Department to aim for 90% in the coming year. Strict controls and continuous monitoring were deemed essential for achieving this target.

The Chairperson highlighted the importance of the audit action plan and its implementation. The Committee stressed the need for the Department to address any remaining issues, particularly those flagged in the AG’s report, and to ensure that measures are in place to prevent future non-compliance. The Chairperson confirmed that the Committee would continue to monitor progress on these issues.

The Chairperson mentioned that the Committee would finalise its report soon, which would include specific recommendations for the Department. Areas requiring further attention would be identified, and follow-up actions would be outlined. She emphasised that the Department must take these recommendations seriously to improve operations.

The Committee also congratulated the Department for an increase in revenue. This is seen as a positive development under the Department’s self-sufficiency and sustainability model. The Chairperson encouraged the Department to continue this progress, noting that it would greatly support the Department’s financial sustainability.

The meeting adjourned for a five-minute break, after which the Department would present its audit action plan and measures to address exceptional litigation as flagged in previous reports.

Audit Action Plan 2023/24 Progress Briefing

The Deputy Minister thanked the Chairperson and acknowledged the opportunity to present the audit action plan. She presented an update on the progress of its 2023/24 Audit Action Plan, which addressed 82 findings raised by the AGSA. These findings included irregular expenditure, procurement non-compliance, and systemic challenges related to remand detention and IT systems.

Highlights of the Progress Report

- Procurement Compliance: The Department is implementing measures to align procurement practices with Treasury regulations to prevent bid splitting and ensure competitive bidding processes.

- Integrated Inmate Management System (IIMS): While progress has been hampered by ongoing arbitration and legal challenges, the Department has outlined plans to address inefficiencies once the disputes are resolved.

- Remand Detention Systems: The DCS is working with the JCPS cluster to address systemic gaps in detainee management and improve coordination to resolve outstanding issues.

The Department had ensured that all findings raised were addressed and tracked, emphasising that the audit findings, initially flagged in May, had now been reclassified as matters of emphasis. This indicated positive progress, including the ongoing legal cases.

(See presentation document attached for further details)

The Chairperson thanked the Department for their briefing and noted the importance of continued oversight to ensure effective implementation of the Audit Action Plan.

Discussion

A Member stressed the importance of continuously working in tandem with the Portfolio Committee to ensure the Department is held accountable for addressing audit findings. This would help align the Department’s efforts with the Portfolio Committee’s expectations, thereby promoting progress and avoiding future audit discrepancies.

Another Member commented on the Department's notable progress, particularly in reducing findings. The reduction was commended, acknowledging the management’s efforts in addressing long-standing issues. Members were encouraged to continue implementing the action plan diligently to avoid recurring issues.

A Member raised concerns regarding the delayed full appointment of key officials, particularly the audit committee chairperson. They highlighted the importance of implementing systems to mitigate wasteful expenditure and ensuring that officials follow proper procedures. The AG had flagged the equity plan and vacancies within the Department. Addressing these issues and ensuring consequences for non-compliance were key to maintaining the integrity of the Department’s work.

The Department responded, noting that several senior management positions were being addressed. They had conducted interviews for various posts, including the CFO and HR positions, ensuring that key roles were filled to avoid future vacancies hindering the Department’s performance.

Another Member acknowledged the Department's ongoing efforts, especially since 2019, in improving its systems and processes. The commitment to reducing unnecessary expenditure, addressing claims, and filling vacant posts was noted.

Closing remarks

The discussion concluded by encouraging the Department to continue with its planned action to prevent audit findings. They stressed the need for proper planning, especially concerning equity and vacant positions. A call was made for the Department to implement a system that prioritises good governance and accountability, ensuring that the Department is fully staffed and its systems are robust.

The Chairperson noted that the next steps would include closely monitoring the implementation of the audit action plan. The Committee would continue to support the Department’s efforts and ensure that the systems put in place lead to tangible improvements. The meeting ended with gratitude to the Department for its cooperation and flexibility in presenting the necessary reports.

The meeting was adjourned.