Committee Commended DCS Progress on Procurement Reforms and Bread Pricing

(The Post News) – The Portfolio Committee on Correctional Services received a detailed briefing on the 23rd of October 2025 from the Department Of Correctional Services (DCS) on measures implemented to address procurement challenges, long-term contracts, and the recent controversy surrounding the inflated price of bread supplied to correctional centres.

Committee Chairperson Ms Kgomotso Ramolobeng explained that following public concern over the cost of bread, the Committee found it necessary to engage the department on corrective actions taken. She requested that the department present its revised service level agreements with suppliers responsible for bread delivery to prisons across the country.

Minister Dr Pieter Groenewald explained that the newly established flat rate for bread prices aim to prevent potential price collusion among suppliers. He revealed that he revised pricing structure, effective from 1st October 2025, is expected to save he department approximately R11 million annually.

While the Committee commended the department’s prompt action, it emphasized that additional steps are required.

The Committee recommended an internal investigation to determine whether there was any collusion between suppliers and departmental officials that contributed to the inflated bread prices. Furthermore, it called for accountability measures to address any deliberate financial misconduct.

Ms. Ramolobeng stressed the importance of investigating the price inflation to identify whether any external parties were involved. This concern was underscored during the Committee’s oversight visit to Qalakabusha Correctional Centre, where it was discovered that the bakery was non-operational due to incorrect equipment specifications.

Minister Groenewald committed to repairing bakeries that have the necessary equipment but remain non-functional. He outlined some challenges causing these delays and explained that the previous high bread prices partly stemmed from the department being treated as a consumer rather than a retailer.

The Committee was also informed of the Auditor-General adverse findings regarding the awarding of non-compliant contracts to companies with outstanding tax obligations.

To address these issues, the department has decided to centralize its procurement process using short-term contracts to better comply with the Public Finance Management Act and related regulations.

Ramolobeng again gave credit to the Department for including a six-month review clause in its service agreements with suppliers, allowing renegotiation of bread prices rather than accepting inflated rates.

She urged the Department to ensure that bakeries at Pietermaritzburg and Qalakabusha correctional centres become fully operational ,noting that although these bakeries are largely equipped, some missing equipment is hindering their functionality.

The Committee welcomed the ongoing internal investigations into alleged price-fixing collusion and called for accountability for officials responsible for delays in making Correctional Services fully operational. Ramolobeng requested regular updates from the Department in investigation timelines and the progress fully functional bakery operations.