South African taxpayers have been left with a staggering R6.4-million bill after the Department of Correctional Services failed to defend or attend court cases, allowing judgments to be granted against the state without its side being heard.
The costly failures come as South Africans battle rising food and transport costs while paying 15% VAT on most goods and services and fuel levies that add to their financial burden.
On Friday, the department told Sunday World it had embarked on a nationwide exercise to identify officials and legal representatives who may have been responsible for the losses and determine whether any money could be recovered.
Probe into what went wrong
Department spokesperson Singabakho Nxumalo said its legal services division was engaging correctional centres across the country to establish what went wrong.
“A comprehensive process is currently underway, with the Department’s Legal Services engaging correctional centres nationally to establish the full extent of the matters, the circumstances that led to the default judgments, and any administrative or procedural shortcomings that may have contributed to these losses,” he said.
R6.4m lost through default judgments
The department’s intervention follows damning revelations before Parliament’s Portfolio Committee on Correctional Services on October 14 that R6.4-million had been lost through default judgments during the 2025/26 financial year.
The amount accounted for more than half of the department’s R12.6-million in fruitless and wasteful expenditure, a sharp increase from R947 000 in the previous financial year.
Committee chairperson Kgomotso Anthea Ramolobeng condemned the department’s deteriorating financial management and demanded accountability.
“[It] cannot normalise chronic fiscal indiscipline,” she said.
The committee instructed the department to submit a comprehensive report within seven working days, identifying the court cases, amounts involved, reasons for non-appearance and officials responsible.
However, the parliamentary disclosure did not identify the plaintiffs, courts or underlying claims. It also remained unclear whether the failures resulted from negligence by departmental officials, legal representatives or other procedural shortcomings.
A default judgment generally occurs when a defendant fails to defend legal proceedings or comply with court requirements, potentially resulting in an enforceable financial obligation without the defendant presenting its case.
R6m wasted on late municipal payments
The department’s financial problems extend beyond the courtroom. Parliament heard that another R6-million had been wasted on interest arising from late municipal payments, while R200 000 was attributed to poorly planned official trips.
The department also received a disclaimer audit opinion following three-consecutive years of unqualified audit opinions with findings.
Auditors raised concerns about the reliability of supporting documents, including allegations of manipulation involving a coal supply tender.
Four officials, including the department’s chief financial officer, were suspended in connection with allegations surrounding the procurement process.
Correctional Services Minister Pieter Groenewald informed Parliament that suspected irregularities had been referred to the relevant authorities.
Budget exceeded but targets fall short
The committee also questioned how the department spent 102% of its budget while achieving only 85% of its planned performance targets.
“The committee is profoundly disappointed. We expected improved governance, not a disclaimer,” Ramolobeng said.
Parliament further demanded explanations for R13.6-million in irregular expenditure and reports detailing investigations, disciplinary proceedings and corrective measures.
“Public funds must be protected, records must be reliable and misconduct must have consequences,” Ramolobeng said.
Nationwide assessment
Nxumalo said the nationwide assessment would establish the circumstances surrounding the default judgments, identify those who might bear responsibility and determine possible recoveries.
The findings would be consolidated into a report for Parliament and other oversight bodies, alongside recommendations to strengthen litigation management and prevent further losses.
“It would, however, be premature to pronounce on individual accountability, disciplinary consequences or possible recoveries before the assessment has been concluded and the facts have been properly established,” he said.
The department has not indicated when the investigation will be completed or whether any money has already been recovered.
- South African taxpayers have been left with a staggering R6.4-million bill after the Department of Correctional Services failed to defend or attend court cases, allowing judgments to be granted against the state without its side being heard.
- The costly failures come as South Africans battle rising food and transport costs while paying 15% VAT on most goods and services and fuel levies that add to their financial burden.
- On Friday, the department told Sunday World it had embarked on a nationwide exercise to identify officials and legal representatives who may have been responsible for the losses and determine whether any money could be recovered.
- Probe into what went wrong Department spokesperson Singabakho Nxumalo said its legal services division was engaging correctional centres across the country to establish what went wrong.
