The department of correctional services has confirmed R820.165m in outstanding invoices from the 2023/24 financial year were settled using the 2024/25 budget allocation.
The disclosure, made in a written reply to DA MP Janho Engelbrecht, shows that the department entered the current financial year with significant carry-over liabilities and has already exceeded its capital works budget by R108.743m in the first quarter.
The overspend includes R109.989m on buildings and fixed structures, raising concerns about compliance with section 15 of the Public Finance Management Act (PFMA), which prohibits unauthorised expenditure and requires departments to plan for known liabilities.
In previous parliamentary responses by correctional services minister Pieter Groenewald, the department denied delayed payments, attributing prior accruals to insufficient budget allocations rather than administrative failure. Groenewald's latest response confirms the reprioritisation of current-year funds to settle prior-year obligations has materially affected the department’s infrastructure capacity and reduced its ability to fund registered projects in 2025/26.
The minister acknowledged the pressure on departmental finances, warning of a capital budget shortfall of R222m and a maintenance gap of R154 million. He attributed the shortfall to inflation, rising municipal tariffs and the devolution of infrastructure responsibilities from the department of public works and infrastructure without corresponding budget support.
In his Budget Vote speech delivered this month , Groenewald cautioned “capital works projects will be on hold” and that the department must “do more with less.” He further confirmed the approved allocations R232.259m for capital items and R154.863m for maintenance would be “insufficient to fund registered projects” already tabled in the 2025 Estimates of National Expenditure.
This stands in direct contradiction to the department’s payment decisions, which have constrained its fiscal space and compromised its ability to deliver on its mandate. While the minister highlighted innovation and self-sufficiency citing bakery and farm production savings, the reply underscores misalignment between the department’s medium-term planning and its operational obligations under the Correctional Services Act, the 2005 White Paper on Corrections and section 195(1)(f) of the Constitution, which requires public administration to be accountable and to prioritise efficient use of resources.
The portfolio committee on correctional services has separately flagged a projected R1.4bn overexpenditure for 2024/25, citing cost-of-living adjustments, food inflation and the transfer of maintenance responsibilities from public works. Those factors mirror those cited by Groenewald, but the written reply confirms that the department’s own fiscal management has exacerbated the shortfall.
The minister’s undertaking to request itemised billing from public works is procedurally sound but reactive, and may not be sufficient to restore budgetary integrity unless accompanied by structural budget adjustments.
The disclosure comes as parliament prepares to finalise the 2025 Appropriations Bill, which was passed by the National Assembly on July 23 and is scheduled for consideration by the National Council of Provinces on July 30.
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