Anita Nkonki|Published
Questionable records, millions in spending and accountability gaps at Correctional Services
The Department of Correctional Services has suffered a sharp deterioration in its financial audit outcome, with the Auditor-General raising serious concerns about the authenticity of procurement documents, systemic record-keeping failures and the reliability of information supplied by management.
The department received a disclaimer of audit opinion for the 2025/26 financial year, a setback from its previous unqualified opinion with findings.
While the Auditor-General warned of significant fraud risk linked to unauthentic supporting documents, the department’s leadership has acknowledged the weaknesses and pledged corrective action. The findings have also prompted calls for closer scrutiny of financial controls and accountability.
Auditor-General raises concerns over procurement records
In its report, the Auditor-General of South Africa (AGSA) said it could not obtain sufficient appropriate audit evidence to express an opinion on the department’s financial statements, after concerns emerged about the authenticity of documents submitted by management to support procurement processes.
“Significant concerns were identified regarding the integrity of supporting evidence presented by management since certain documentation provided in support of procurement processes was not authentic,” the report stated.
The Auditor-General warned that the circumstances were “indicative of a significant fraud risk” and cast “substantial doubt on the reliability of information provided for audit purposes, the validity of audit evidence obtained, and the authenticity and completeness of the accounting records and supporting documentation”.
The possible effects were material and pervasive to the financial statements, the report said, leaving auditors unable to establish the extent to which the documentation could be relied upon.
The disclaimer represents a sharp regression from the department’s unqualified audit opinion with findings in 2024/25. It raises questions not only about financial reporting, but also about the controls intended to protect public funds and ensure procurement decisions can withstand scrutiny.
Department records R636.97m in unauthorised expenditure
The annual report records R636.97 million in unauthorised expenditure during the year, alongside R138.6 million in irregular expenditure. Fruitless and wasteful expenditure stood at R12.6 million and remained under investigation.
While these categories do not automatically establish fraud or theft, the amounts add to the scrutiny facing a department whose auditors could not obtain reliable evidence to support an opinion on its financial statements.
The department’s Audit Committee expressed concern about the regression, saying it had moved from an unqualified opinion with findings to a disclaimer. It recommended an independent investigation into the circumstances that contributed to the outcome, including the extent and impact of unreliable or unauthentic documentation.
The committee also called for relevant evidence to be preserved and for consequence management where misconduct was confirmed. It warned that the procurement control system had been “not effective in preventing or detecting record integrity risks”.
Parliamentary committee calls for further scrutiny
The Portfolio Committee on Correctional Services has also signalled that the findings require further scrutiny.
Following a briefing from the Auditor-General on the annual audit outcomes of the department and the Judicial Inspectorate for Correctional Services (JICS), the committee said the disclaimer arose from “systemic record-keeping failures and falsified or altered supporting documentation that compromised management integrity”.
The committee said it would meet with DCS the following week to engage on the findings, placing the department’s explanations and corrective measures under parliamentary scrutiny.
The committee’s separate demands for detailed expenditure breakdowns, consequence-management reports and procurement corrective plans largely concern JICS, which received an unqualified audit opinion with findings. Those requirements relate to the inspectorate and should not be mistaken for findings against DCS.
DA criticises audit outcome
The Democratic Alliance has also criticised the department’s audit outcome, with its Correctional Services spokesperson, Janho Engelbrecht, describing it as “a direct indictment of compromised leadership”.
In a statement, Engelbrecht said: “This audit failure is no administrative oversight; it is a direct indictment of compromised leadership.”
Minister acknowledges significant setback
Minister of Correctional Services Pieter Groenewald acknowledged the regression, describing it as “a significant setback” that fell short of the standards of governance, accountability and public-sector stewardship to which the department was committed.
“The Auditor-General was unable to obtain sufficient appropriate audit evidence to support an audit opinion, primarily due to concerns regarding the authenticity and reliability of certain documentation submitted during the audit process,” Groenewald said.
He said the department accepted the seriousness of the findings and had “instituted measures to strengthen governance, record management, internal controls and assurance processes”.
Deputy Minister Lindiwe Ntshalintshali also acknowledged weaknesses in the department’s governance and control environment, saying the findings required urgent attention.
“The Department regards these findings with the seriousness they deserve and has committed itself to implementing comprehensive corrective measures aimed at strengthening governance, improving the credibility of information, enhancing accountability and restoring confidence in its control environment,” she said.
Ntshalintshali said a focused programme of action was being implemented to address the root causes of the findings, strengthen audit readiness and improve the department’s audit outcome in the next audit cycle.