The Department of Correctional Services has been hit with a disclaimer audit opinion for 2025/26 after the auditor-general flagged procurement failures, including problems in the department’s five-year food-supply system.
Sunday World has been informed that procurement irregularities are among the matters behind the disclaimer. The department’s annual report is expected to be tabled in Parliament on September 30.
An Auditor-General of South Africa (AGSA) letter, dated September 21, confirms the disclaimer and shows that Correctional Services repeatedly tried to have the outcome reconsidered before the annual report became public.
The letter says the AGSA remained concerned about “the reliability of information provided” by the department and the effect that has on whether auditors could obtain sufficient and appropriate evidence.
“Accordingly, the request to reconsider the disclaimer of opinion cannot be acceded to,” acting head of audit Dr Thami Zikode told National Commissioner Makgothi Thobakgale.
The outcome marks a sharp deterioration from 2024/25, when the DCS retained an unqualified audit opinion with findings. The AGSA nevertheless warned Parliament that material non-compliance with supply-chain management rules persisted, including contracts awarded using altered criteria, supplier tax problems and payments above approved quotation values.
The food contract had become an audit concern.
At a portfolio committee meeting in October last year, AGSA business executive Michelle Magerman confirmed that auditors had examined the entire procurement process for the department’s nutritional-products panel, “including all bidders”.
She said several deficiencies had been identified and warned that “the use of any of the flagged service providers would result in irregular expenditure”.
Four days later, Deputy Minister Lindiwe Ntshalintshali told Parliament that about 17 long-term contracts had been flagged for non-compliance.
She said the “proper auditing” of those contracts would be recorded in the 2025/26 financial year because many appointments were recent.
She warned that contracts awarded to non-compliant companies could result in fruitless and wasteful expenditure.
During the meeting, DA MP Janho Engelbrecht asked whether the AG findings related to tender HO 4/2023, the national food-supply contract, after the report indicated that the DCS had used evaluation criteria that deviated from those in the original tender documents.
DCS procurement official Dikeledi Molaba pushed back against the audit, telling the committee that it appeared “more investigative than evaluative”. She said the DCS had responded to all 17 outstanding findings and believed most could be clarified with the AGSA.
The dispute with the AGSA did not end there.
The September 21 letter records an engagement on August 19, correspondence from Thobakgale on August 20, a formal complaint through the AGSA’s website, further letters on September 7 and 14 and a technical opinion submitted by the DCS.
The AGSA says those representations were considered by its technical and quality units but did not justify changing the audit opinion.
“The Department’s further submissions therefore do not provide a basis to amend the audit opinion or reopen the concluded audit process,” Zi-kode wrote.
He declared the matter concluded and said “no further internal reconsideration of the audit opinion will be undertaken”.
The disclaimer comes while the food tender remains under parliamentary scrutiny.
On September 22, the portfolio committee said the contract involved 115 service providers and 66 nutritional products. Food provision costs the DCS more than R1.06 billion annually.
Committee chairperson Kgomotso Ramolobeng said proper price benchmarks were needed before contracts were awarded.
“It does not make sense for something that ordinarily costs R200 in the marketplace to suddenly be procured at R2,000,” she said.
Separately, Minister Pieter Groenewald suspended four senior DCS officials, including the chief financial officer, on September 8 over alleged fraud in a coal-supply contract. The Hawks are investigating under CAS 799/7/2026.
The coal matter is separate from the food contract.
The available documents do not establish that it caused the disclaimer.
The unpublished annual report is expected to reveal which procurement irregularities contributed to the disclaimer and why the DCS fought unsuccessfully to have the outcome altered before Parliament saw it.
Groenewald’s office and the department declined to comment before the annual report is tabled in Parliament.
- The Department of Correctional Services (DCS) received a disclaimer audit opinion for 2025/26 due to procurement failures, including issues with its five-year food-supply system.
- The Auditor-General of South Africa (AGSA) cited material non-compliance with supply-chain management rules, such as contracts awarded using altered criteria, supplier tax problems, and payments exceeding approved values.
- The national food-supply contract tender HO 4/2023 was flagged for using evaluation criteria that deviated from original tender documents, with about 17 long-term contracts noted for non-compliance.
- The DCS unsuccessfully attempted multiple times to have the disclaimer audit opinion reconsidered by the AGSA, which concluded no basis existed to amend the opinion.
- Separately, four senior DCS officials, including the chief financial officer, were suspended over alleged fraud in a coal-supply contract, which is not related to the food contract or the audit disclaimer.
The Department of Correctional Services has been hit with a disclaimer audit opinion for 2025/26 after the auditor-general flagged procurement failures, including problems in the department’s five-year food-supply system.
Sunday World has been informed that procurement irregularities are among the matters behind the disclaimer. The department’s annual report is expected to be tabled in Parliament on September 30.
An Auditor-General of South Africa (AGSA) letter, dated September 21, confirms the disclaimer and shows that Correctional Services repeatedly tried to have the outcome reconsidered before the annual report became public.
The letter says the AGSA remained concerned about “the reliability of information provided” by the department and the effect that has on whether auditors could obtain sufficient and appropriate evidence.
“Accordingly, the request to reconsider the disclaimer of opinion cannot be acceded to,” acting head of audit Dr Thami Zikode told National Commissioner Makgothi Thobakgale.
The outcome marks a sharp deterioration from 2024/25, when the DCS retained an unqualified audit opinion with findings. The AGSA nevertheless warned Parliament that material non-compliance with supply-chain management rules persisted, including contracts awarded using altered criteria, supplier tax problems and payments above approved quotation values.
The food contract had become an audit concern.
At a portfolio committee meeting in October last year, AGSA business executive Michelle Magerman confirmed that auditors had examined the entire procurement process for the department’s nutritional-products panel, “including all bidders”.
She said several deficiencies had been identified and warned that “the use of any of the flagged service providers would result in irregular expenditure”.
Four days later, Deputy Minister Lindiwe Ntshalintshali told Parliament that about 17 long-term contracts had been flagged for non-compliance.
She said the “proper auditing” of those contracts would be recorded in the 2025/26 financial year because many appointments were recent.
She warned that contracts awarded to non-compliant companies could result in fruitless and wasteful expenditure.
During the meeting, DA MP Janho Engelbrecht asked whether the AG findings related to tender HO 4/2023, the national food-supply contract, after the report indicated that the DCS had used evaluation criteria that deviated from those in the original tender documents.
DCS procurement official Dikeledi Molaba pushed back against the audit, telling the committee that it appeared “more investigative than evaluative”. She said the DCS had responded to all 17 outstanding findings and believed most could be clarified with the AGSA.
The dispute with the AGSA did not end there.
The September 21 letter records an engagement on August 19, correspondence from Thobakgale on August 20, a formal complaint through the AGSA’s website, further letters on September 7 and 14 and a technical opinion submitted by the DCS.
The AGSA says those representations were considered by its technical and quality units but did not justify changing the audit opinion.
“The Department’s further submissions therefore do not provide a basis to amend the audit opinion or reopen the concluded audit process,” Zi-kode wrote.
He declared the matter concluded and said “no further internal reconsideration of the audit opinion will be undertaken”.
The disclaimer comes while the food tender remains under parliamentary scrutiny.
On September 22, the portfolio committee said the contract involved 115 service providers and 66 nutritional products. Food provision costs the DCS more than R1.06 billion annually.
Committee chairperson Kgomotso Ramolobeng said proper price benchmarks were needed before contracts were awarded.
“It does not make sense for something that ordinarily costs R200 in the marketplace to suddenly be procured at R2,000,” she said.
Separately, Minister Pieter Groenewald suspended four senior DCS officials, including the chief financial officer, on September 8 over alleged fraud in a coal-supply contract. The Hawks are investigating under CAS 799/7/2026.
The coal matter is separate from the food contract.
The available documents do not establish that it caused the disclaimer.
The unpublished annual report is expected to reveal which procurement irregularities contributed to the disclaimer and why the DCS fought unsuccessfully to have the outcome altered before Parliament saw it.
Groenewald’s office and the department declined to comment before the annual report is tabled in Parliament.
