Parliament, Tuesday, 12 May 2026 – The Portfolio Committee on Correctional Services today engaged with the Department of Correctional Services (DCS) on the renegotiation of prices for perishable and non-perishable goods, expressing serious concern that highly inflated prices were initially allowed to pass through procurement processes.
This follows a briefing in which the committee learnt that, in some instances, the DCS paid between R672 and R726 for a single litre of cooking oil. 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. The old prices were R3 735 compared to the new price of R920 in the Gauteng region, for example.
Committee Chairperson Ms Kgomotso Anthea 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.
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.
The department explained that its position during the price negotiation phase was that suppliers within the same region should charge uniform prices. However, several items were later identified as being excessively priced. In terms of contractual provisions allowing for price reviews and negotiations, the DCS subsequently engaged with suppliers to secure downward adjustments on the affected items.
The committee was informed that the renegotiation process remains ongoing, as the department continues to identify multiple items with prices far above market norms.
Members also heard that, in 2026, suppliers had already begun applying for and negotiating further price increases on various items. The DCS indicated that it is currently reviewing approximately 4 600 transactions, a process being undertaken by supply chain management and contract management officials. The department described the exercise as extensive and cumbersome. The process is expected to be concluded by 30 June 2026, with new prices taking effect from 1 July 2026.
Ms 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 further heard that, in terms of the special conditions of contract, prices submitted under the bid are fixed for the first six months from the signing of the contract and are subject to review every six months thereafter.
Ms Ramolobeng reiterated the committee’s call for lifestyle audits for officials, particularly those involved in supply chain management. “Given the scale of irregular expenditure and ongoing allegations of procurement manipulation, lifestyle audits would constitute reasonable oversight. Such a process would, however, require the sanction of the Minister, and the committee requests a report once the process has been concluded,” she said.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON CORRECTIONAL SERVICES, MS KGOMOTSO ANTHEA RAMOLOBENG.
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