PSA demands answers after Correctional Services gets disclaimer audit

The Public Servants Association (PSA) has called for urgent parliamentary scrutiny of the department of correctional services after it received a disclaimer audit opinion for the 2025/26 financial year, raising fresh concerns about governance, financial controls and the management of public funds.

The union wants parliament to hold the department accountable, and also to establish the reasons behind the adverse audit outcome and compel it to implement a time-bound corrective action plan.

The Auditor-General of South Africa (AGSA) issued the disclaimer after it could not obtain sufficient appropriate evidence on which to base an audit opinion.

PSA said the outcome demanded urgent intervention, warning that the department could not afford to ignore concerns about its financial management and procurement processes.

Food tender under scrutiny

The audit outcome comes amid reported concerns about the department’s five-year food-supply contracting process, which reportedly involved 115 service providers and 66 nutritional products, at an annual cost exceeding R1.06-billion.

Media reports have also indicated that 17 long-term contracts were flagged for non-compliance, including concerns about allegedly altered evaluation criteria and inadequate price benchmarking.

The PSA said these allegations required a transparent, evidence-based investigation to establish whether procurement rules were followed and whether public funds were properly managed.

While the union has previously raised concerns about the food-supply tender, it acknowledged that the available information did not establish that the contract caused the disclaimer audit opinion.

It nevertheless called for a comprehensive examination of the tender, including the evaluation process, contract management, pricing, payments and the responsibilities of officials tasked with oversight.

The union said the reported procurement deficiencies could not be treated as routine administrative matters, particularly given the department’s responsibility for managing correctional facilities and rehabilitating offenders.

Union questions governance and financial controls

PSA’s Claude Naiker said” “Reports that DCS sought reconsideration of the outcome, but that the AGSA maintained its position, mean that the focus must now shift to accountability, corrective action and protection of public funds. Media reports indicate that the department’s five-year food-supply contracting process involved 115 service providers and 66 nutritional products, with annual costs exceeding R1,06 billion. They further report that 17 long-term contracts were flagged for non-compliance, including concerns about altered evaluation criteria and inadequate price benchmarking. These allegations require an urgent, transparent and evidence-based investigation.”

READ: DCS rocked by damning audit as food contract comes under fire
Naiker said that a disclaimer is one of the most serious audit outcomes because the auditor cannot obtain sufficient appropriate evidence to support an opinion on the financial statements.

“The situation is particularly concerning given that DCS received an unqualified audit opinion in 2024/25, despite the AGSA having raised material supply-chain management concerns. A department entrusted with public safety and rehabilitation cannot treat repeated audit warnings as administrative technicalities. They are red flags requiring decisive intervention. The PSA has previously raised concerns about the food-supply tender and its procurement risks. While the available information does not establish that the food contract caused the disclaimer, the reported deficiencies warrant a full examination of the tender, evaluation process, contract management, pricing, payments and oversight responsibilities,” said Naiker..

The PSA said the latest outcome reinforced the need for decisive action to address longstanding weaknesses in procurement and financial oversight.

It warned that repeated audit findings should not be dismissed as technicalities, but treated as red flags requiring intervention.

Parliament urged to demand answers

The union has called on Parliament’s Portfolio Committee on Correctional Services and the Standing Committee on Public Accounts (Scopa) to ensure that the department accounts for the disclaimer and discloses all audit matters that contributed to the outcome.

It wants the committees to establish where accountability lies and ensure that any wrongdoing uncovered through investigations results in appropriate consequences.

The PSA is also demanding a public, time-bound remedial plan, the recovery of losses where legally warranted and regular progress reports on disciplinary, civil and criminal referrals.

READ: 83% spike in inmate deaths prompts MPs to demand answers from DCS

The union said consequence management must be swift, lawful and evidence-based, regardless of the seniority or position of those implicated.

It warned against individuals being shielded from accountability and called for an end to selective action and delays in addressing alleged misconduct.

Staff shortages raise further concerns

The PSA said the department’s financial and governance challenges must also be considered against the difficult working conditions faced by correctional services employees.

The union has repeatedly raised concerns about critical staff shortages at correctional centres and unsafe working environments.

It said financial constraints had frequently been cited as an obstacle to addressing these challenges.

The union warned that failures in financial management and procurement could have consequences beyond the department’s balance sheet, potentially affecting employees, inmates, rehabilitation programmes and service delivery.

It said the proper management of public funds was a constitutional and legal obligation, adding that financial accountability was essential to restoring public confidence in the department.

The PSA said it was awaiting the tabling of the annual report and Parliament’s response, and would continue pressing for credible corrective measures.

It maintained that the priority should be to restore institutional integrity, protect employees and ensure that public funds are used in the public interest.

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