R370m prisons tender outrage

The Department of Correctional Services has awarded a R370 million tender when it only has R16 million in its budget.

Johannesburg - Finance Minister Pravin Gordhan’s instruction in the Budget for belt-tightening has fallen on deaf ears, after the Department of Correctional Services awarded a R370 million tender when it had R16m in its budget.

The Treasury has launched a probe into the tender after it told the standing committee on public accounts (Scopa) in Parliament on Tuesday there were irregularities in the tender.

Justice and Correctional Services Minister Michael Masutha told Scopa members that no stone would be left unturned.

MPs questioned the tender after it emerged that the department had no budget for it.

ANC MP Vincent Smith said it was unjustified for the department to go against the finance minister's instruction in the Budget speech.

“This is what the minister of finance said last week, you can’t go and buy if you can’t afford it. You go and commit R370m, yet you have R16m and don’t know where the other money will come from,” said Smith.

He said the department had flouted its own procurement process when it awarded the information and communications technology tender.

The department had also flouted Treasury regulations, added Smith.

Alan Ross of the DA also called for a thorough investigation into irregularities in this tender.

Ross said he was also concerned that officials in the Department of Correctional Services have failed to disclose their financial interests.

He added that the Special Investigating Unit must be roped in to probe the R370m tender.

Head of prisons Zacharia Modise said the money available for this year was R86m, and the other funds would come through in the next two years.

He said that in 2017, a total of R120m would be made available by the department and R150m in the 2017/18 financial year.

The Treasury told Scopa that the tender was under investigation and that a report would be given to Parliament in the next two weeks.

Masutha said they welcomed the investigation.

The Star