Correctional Services boss probes contracts

Published Aug 20, 2008

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Correctional Services national commissioner Vernie Petersen has launched a probe into several major contracts worth millions between his department and private companies.

This comes days after Petersen defied Correctional Services Minister Ngconde Balfour and went ahead to invite companies to tender for a lucrative catering contract involving the supply of food to several large prisons.

According to sources, Balfour had wanted the Bosasa contract to be extended.

Top officials from the department on Tuesday told MPs from the portfolio committee on correctional services that Petersen had ordered an investigation into the entire history of his department's multimillion-rand contract with Bosasa, a company with links to Petersen's predecessor, Linda Mti. The company has since had its contract extended without it being put out to tender.

Deputy chief commissioner Alfred Tsetsane on Tuesday said his department hoped their investigation would examine whether proper procedures were followed in awarding the food contract as well as other contracts.

If anyone was found guilty of any irregularity, Correctional Services would take action against such individuals, explained Tsetsane.

"We need to get to the bottom (of) what went wrong from the onset and how we are going to remedy that. In the process, we are saying no further extensions (and) no further contracts will be issued without following proper procedures."

Tsetsane said a number of contracts were being scrutinised by his department.

Chief deputy commissioner for development and care Subashini Moodley said because Petersen had serious concerns, a probe involving the Special Investigating Unit would be conducted into the Bosasa contract, which began in 2004 and was subsequently extended.

Moodley said Bosasa's contract had been extended for a further six months.

ANC MP Winnie Ngwenya said she was angry that the Bosasa catering contract was extended without officials informing the portfolio committee, adding that officials were defying parliament.

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