Parliament slams DCS over ‘irrational’ food contract prices and procurement failures

Shock figures uncovered in contract reviews

The committee was briefed on Tuesday about the DCS’s renegotiation of contracts for perishable and non-perishable goods after officials identified excessive pricing across several items supplied to correctional facilities nationwide. The department had signed contracts with 115 service providers across all six regions for supply, delivery and off-loading of goods over a five-year period from 1 April 2025 to 31 March 2030.

Among the most startling revelations: under existing contracts the DCS had been paying between R672 and R726 for a single litre of cooking oil. After renegotiation, the same product will cost between R26 and R29 per litre. The committee also heard that gravy powder prices in Gauteng fell from R3,735 to R920 following review a reduction of more than R2,800 on that item.

Committee response: focus on failures, not savings

Committee Chairperson Kgomotso Anthea Ramolobeng cautioned against framing the renegotiated prices as achievements. She said the emphasis should be on how such inflated prices were approved in the first place.

“The DCS presents the renegotiated prices as savings, but the real issue is that the original prices were irrational and should never have passed internal procurement controls in the first place,”

Ramolobeng warned that correcting inflated prices after contracts were signed could not be presented as sound financial management.

“If one litre of oil was initially quoted at an amount far above the ordinary market value, reducing that price later cannot be framed as prudent financial management. Instead, it exposes weaknesses in supply chain management systems and processes,”

Ongoing review and calls for oversight

Officials told Parliament the review process is ongoing, with approximately 4,600 transactions currently under scrutiny by supply chain management and contract management teams. The DCS described the review as “extensive and cumbersome”, a description Ramolobeng said was deeply concerning for public finance oversight.

“This is deeply concerning. Public finance oversight is supposed to be rigorous. The language used creates the impression that compliance is viewed as an inconvenience rather than a constitutional obligation,”

The department expects the review to be completed by 30 June 2026, with newly negotiated prices set to take effect from 1 July 2026.

Requests for lifestyle audits

Ramolobeng also renewed calls for lifestyle audits targeting officials involved in supply chain management amid concerns about irregular expenditure and allegations of procurement manipulation. She said such audits would require the sanction of the Minister and that the committee requests a report once the process has been concluded.