The Portfolio Committee on Correctional Services in South Africa has called for the Department of Correctional Services (DCS) to implement a comprehensive pricing schedule for food items procured for prisons. This move aims to prevent inflated prices and ensure that public funds are used efficiently. The committee made this recommendation during a meeting with the DCS, where they reviewed the current procurement process for perishable and non-perishable food items.
The committee commended the DCS for renegotiating prices with suppliers, which resulted in cost reductions. However, they noted that 60 suppliers under distribution and 80 suppliers under warehousing were affected by these renegotiations. The current five-year contract for food provisions, which started on 1 April 2025 and ends on 31 March 2030, involves 115 service providers delivering 66 nutritional products across six regions. The committee emphasized the need for stricter oversight to prevent similar issues in the future.
The committee expressed concern over the significant annual expenditure on food provisions, which exceeds R1.06 billion. Furthermore, the DCS has projected an overall budget deficit of R749 million for 2026/2027. Committee Chairperson Kgomotso Anthea Ramolobeng stressed that establishing reasonable market prices before tendering would enable officials to identify and address excessive quotations more effectively.
Ramolobeng emphasized that formal pricing benchmarks would strengthen procurement controls and reduce the risk of inflated prices entering active contracts. She cited an example where an item costing R200 in the market was procured at R2,000, highlighting the need for stricter oversight. The committee suggested that the DCS provide a comprehensive pricing schedule for all perishable and non-perishable food items, including current prices paid for each item.
The committee also recommended that the DCS assess whether appropriate price benchmarks are in place and consistently used when evaluating and approving bids. Additionally, they suggested that the DCS strengthen internal verification processes to ensure that pricing, quantities, and product specifications are correctly reflected in contracts. Ramolobeng cited a discrepancy involving oil, where the contract pricing referred to one litre, while the intended supply was different.
Ramolobeng stated that the committee will require the DCS to report on the recovery of funds paid under initial inflated rates and the status of referrals to the South African Police Service relating to suspected collusion. The committee also expects the DCS to provide measures to reduce over-reliance on external consultants and consequence management where applicable.
The committee's recommendations aim to improve the procurement process for prison food and prevent similar issues in the future. By implementing a comprehensive pricing schedule and strengthening internal verification processes, the DCS can ensure that public funds are used efficiently and effectively. The committee's oversight will help to promote transparency and accountability in the procurement process.
Key points
- The Portfolio Committee on Correctional Services urges the Department of Correctional Services to implement a comprehensive pricing schedule for food items procured for prisons.
- The committee commended the DCS for renegotiating prices with suppliers, resulting in cost reductions.
- The committee emphasized the need for stricter oversight to prevent inflated prices and ensure efficient use of public funds.
