Correctional Services attributes ‘Inflated’ pricing to capturing error.

By Lehlohonolo Lehana.

The Department of Correctional Services (DCS) National Commissioner Makgothi Thobakgale says inflated prices charged on certain food items resulted from a “capturing error”.

This follows a hearing where Parliament’s Portfolio Committee on Correctional Services learned that the department was overcharged for basic items, including cooking oil and gravy powder.

In some instances, the DCS paid between R672 and R726 for a single litre of cooking oil.

Thobakgale says pricing has since been corrected, and adjusted rates are expected to take effect on 1st of July 2026.

Under the newly negotiated prices, the department will pay between R26 and R29 for the same quantity. The DCS will also save between R2 815 and R2 538 for gravy powders procured under the new contract. 

Committee Chairperson Kgomotso Ramolobeng said: “The DCS presents the renegotiated prices as savings, but the real issue is that the original prices were irrational and should never have passed internal procurement controls in the first place. The concern is not necessarily the reductions achieved afterwards, but how such inflated figures were initially accepted.”

“We should be cautious not to celebrate the correction of failures as achievements. If one litre of oil was initially quoted at an amount far above the ordinary market value, reducing that price later cannot be framed as prudent financial management. Instead, it exposes weaknesses in supply chain management systems and processes,” said the Chairperson.

Ramolobeng also cautioned the department on the language it uses in presentations, particularly the description of procurement oversight processes as “cumbersome”. “This is deeply concerning. Public finance oversight is supposed to be rigorous. The language used creates the impression that compliance is viewed as an inconvenience rather than a constitutional obligation. We ought to be cautious about the wording used in official presentations and remain mindful of our constitutional responsibilities,” she said.

The committee heard that the DCS signed contracts with 115 service providers for the supply, delivery and off-loading of perishable and non-perishable goods across all six regions for a five-year period, from 1 April 2025 to 31 March 2030.

DCS minister Pieter Groenewald stressed the importance of a thorough investigation into the food contracts, as prices had been high before the department decided to renegotiate them.

“I cannot account, unfortunately, for the prices before my time. But let me put it very clearly. I started the process and there are already results. When we have the total picture, then if it is necessary, I will go to the Special Investigating Unit.”

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