1. PORTFOLIO COMMITTEE: DEPARTMENT OF CORRECTIONAL SERVICES Follow – up Matters from 1 September 2010 1

2. CONTENT 1. Report on litigation 2. OSD for Educators – Results of implementation 3. Outstanding invoices from SITA 4. Outstanding invoices from DPW 5. Report on ARV spending 6. Breakdown of ART Sites 7. Phezulu Fencing (PTY) Ltd 8. Sondolo IT 9. Age Analysis of Staff Debt 10. Improvement of Psychological Services 2

3. CONTENT 11. Optimum Use of Staff 12. Action Plan for Filling of Critical Vacancies 13. Offender Labour 14. Remand Detention Classification System 15. Cell Phones in Correctional Centres 16. Harrismith Escapes 17. Kimberley – Lessons from Riot – EST Official 18. Chairpersons Parole Boards 19. Parole Board Offices 20. Durban Escapes; Improper Conduct : Kokstad; Dbn – Wilson Matter 21. Vetting of Officials in DCS 22. Internal Audit 3

4. 1. REPORT ON LITIGATION Nature of liability Opening balance 31/03/2010 (R’000) Liabilities incurred April - June 2010 (R’000) Closing balance 30/06/2010 (R’000) Damage 15,1440 Damages HIV 3,4550 Defamation 1,7950 Bodily injury/assault 986,5981,095987,693 Unlawful conduct 02,000 Unlawful detention 176,23518,742194,977 Compensation 25,1070 Death in detention 14,1300 4

5. 1. REPORT ON LITIGATION (Cont…) Nature of liability Opening balance 31/03/2010 (R’000) Liabilities incurred April - June 2010 (R’000) Closing balance 30/06/2010 (R’000) Claims for legal cost 40,0040 Unlawful deduction 100 Unpaid rental 1,3260 Breach of contract 3,0480 Rape 4,0890 Pain and suffering 10,93710011,037 Damage to property 2,494692,563 Motor accidents 3,8522324084 Other 95,0910 Total 1,383,31522,2381,405,553 5

6. 2. OSD FOR EDUCATORS – RESULTS OF IMPLEMENTATION 424 Educators have been translated on 5 th July 2010 5 Educators have not yet been translated 19 Educators who have terminated their services have not yet been finalised R19,8 million is estimated for the OSD implementation R11,2 million has been spent on OSD implementation as at 9 th July 2010 Pay progressions and recognition of experience have not yet been finalised as it needs to be tabled at the Bargaining Council 6

7. 3. OUTSTANDING INVOICES FROM SITA A meeting was held between DCS and SITA on 3rd September 2010. The meeting was attended by the following officials: o DCS – National Commissioner, CFO, CDC: OMS, GITO, Finance and SCM o SITA – acting CEO, acting CFO and two (2) board members (1 – Stakeholder Relations and Communications and 1 – Chairperson of Audit and Risk Committee) During the meeting DCS and SITA decided to both perform reconciliations on all outstanding invoices according to their respective records. 7

8. 3. OUTSTANDING INVOICES FROM SITA (Cont…) A follow-up meeting between DCS and SITA will be scheduled in order to interrogate the outcome of the two reconciliations A way forward will be determined during the follow-up meeting. 8

9. 4. OUTSTANDING INVOICES FROM DPW ItemMonth Date received Date of payment Amount R’000 Leases April to September 2010 22 July 201029 July 201032,868 Municipal Services May 201008 August 201013 August 201033,970 June 201018 August 201024 August 201041,398 Capital Projects April 201025 May 201002 July 2010 25,529 (amount claimed 30,086) May 201022 June 201026 July 2010 46,955 (amount claimed 50,305) June 201014 July 2010 01 September 2010 45,829 Arrear payments March 2010 April – May 2010 01 September 2010 6,306 7,907 9

10. 5. REPORT ON ARV SPENDING Allocation and Expenditure: 2009/10 Financial year Description Allocation R’000 Commitments R’000 Expenses R’000 Available budget R’000 EC 0000 FS/N. Cape 0000 Gauteng 2,67501,885791 Kwazulu/Natal 9,59107,5692,022 LMN 47820476 W. Cape 8383689147 Departmental Resp. 13,582510,1433,436 10

11. 5. REPORT ON ARV SPENDING (Cont…) Allocation and Expenditure: 2010/11 Financial year Description Allocation R’000 Commitments R’000 Expenses R’000 Available budget R’000 EC 0000 FS/N. Cape 25,84900 Gauteng 2,100202,098 Kwazulu/Natal 1000526-426 LMN 0000 W. Cape 705360642 Departmental Resp. 28,754558628,163 11

12. 5. REPORT ON ARV SPENDING (Cont…) In the previous financial year (2009/10) 74.67% of the allocated budget was spent (R10,143 million against R13,583 million) Under spending of the previous financial year was due to the late allocation of funds to regions after the line item was created Not all regions have been allocated a budget under Item: Inv Medi Antiretroviral drugs There is a need to review and correct the allocation of Item: Inv Medi Antiretroviral drugs to be standardised and be under the same responsibility in all regions/management areas and correctional centres 12

13. 6. BREAKDOWN OF ART SITES 13 RegionManagement Area Correctional Centre Name of Centre Date Accredited GautengJohannesburgMedium CSizophumelela Clinic 16.03.2007 PretoriaLocal CentreTshepo Wellness Clinic 26.03.2008 Krugersdorp Bophelong Wellness Clinic 28.05.2009 Boksburg Sizanani Wellness Clinic 04.12.2009 Total : 4

14. 6. BREAKDOWN OF ART SITES 14 RegionManagement Area Correctional Centre Name of CentreDate Accredited Western Cape BrandvleiMaximumWellness Centre07.08.2007 PollsmoorMedium AUbomi Wellness Clinic 15.09.2008 Total : 2 Eastern Cape St AlbansMedium BWellness Centre27.11.2006 East LondonMedium BWellness Centre28.09.2007 Middledrift Wellness Centre06.12.2007 MthathaMaximumWellness Centre12.12.2007 Total : 4

15. 6. BREAKDOWN OF ART SITES 15 RegionManagement Area Correctional Centre Name of CentreDate Accredited Free State / Northern Cape GrootvleiMedium AART Assessment / Provision Centre 03.08.2005 KroonstadCentre CART Assessment / Provision Centre 22.03.2007 GroenpuntMaximumART Assessment / Provision Centre 23.03.2007 Kimberley ART Assessment / Provision Centre 30.03.2007 Total : 4

16. 6. BREAKDOWN OF ART SITES 16 RegionManagement Area Correctional Centre Name of CentreDate Accredited KwaZulu Natal EmpangeniQalakabushaART SiteApril 2006 PietermaritzburgMedium AART SiteMay 2006 KokstadMedium BART Site18.07.2007 KokstadEbongweniART Site18.07.2007 DurbanMedium BART SiteSept 2007 NcomeMedium A & B2008 Total : 6 LMNKlerksdorp Lesedi Wellness Clinic 12.03.2009 Total : 1 Grant Total : 21

17. 7. PHEZULU FENCING (PTY) LTD Ownership: Shareholders are as follows: o Ms. GT Josephs67% shares o Ms. SM Rodenburg13% shares o Penta Projects (Pty) Ltd20% shares  Ms. GT Josephs10% shares (in Penta Projects)  Ms. SM Rodenburg90% shares (in Penta Projects) 17

18. 6. PHEZULU FENCING (PTY) LTD (Cont…) Details of contract: One (1) contract with DCS, namely HK 24/2005 The contract makes provision for supply, delivery, installation, commissioning and maintenance of Outer Perimeter Fences with/or Taut Wire Detection Inner Fences, and CCTV surveillance cameras at a number of Centres of Excellence and other Correctional Centres, as well as the linking of Taut Wire Detection Systems that are already installed to the integrated security systems to allow coverage at control rooms, upon the terms and subject to the conditions as set out in the Specifications The system must integrate into the local, regional and National control rooms, providing for effective off-site monitoring 18

19. 7. PHEZULU FENCING (PTY) LTD (Cont…) Details of contract (cont…): The cost for supply, delivery, installation, commissioning (including support and maintenance during warranty year) was R436 185 110-35 The cost for maintenance charges after warranty year, for a four-year period, payable monthly in arrears, is R1 057 350-00/month (subject to one increase by the CPIX (CPI, table 16: Services) on the anniversary of the signing of the contract) The contract was signed on 30 November 2005 19

20. 7. PHEZULU FENCING (PTY) LTD (Cont…) Details of contract (cont…): The services, Full Security fence – Outer perimeter fence plus Taut wire detection inner fence, with CCTV cameras were delivered at: Eastern Cape Region (Cradock, Kirkwood, Stutterheim, Idutywa and Queenstown) Kwazulu Natal Region (Ekuseni - Newcastle) Limpopo / Mpumalanga / North West Region (Ermelo, Makhado, Rooigrond Med A – Mmbatho, Rustenburg Med A) Free State and Northern Cape Region (Goedemoed Med A - Aliwal North, Kroonstad Med C, Kuruman, Sasolburg, Ventersburg) Western Cape Region (Brandvlei Max – Worcester, Drakenstein Med B - Suider Paarl, Drakenstein Max - Suider Paarl, Dwarsrivier – Wolseley, Helderstroom - Caledon) Gauteng Region (Leeuwkop Max – Bryanston, Baviaanspoort Max - Cullinan Road, Zonderwater Med A & B – Cullinan, Odi – Mabopane, Boksburg 20

21. 7. PHEZULU FENCING (PTY) LTD (Cont…) Details of contract (cont…): The services, Taut wire detection inner fence only with CCTV cameras were delivered at: Eastern Cape Region (Eastern Cape Region,East London Med A, East London Med B, Mdantsane, East London Med C, Middledrift, Umtata Max) Gauteng Region (Emthonjeni Juveniles – Baviaanspoort Cullinan Road, Leeuwkop Juvenile - Bryanston) Kwazulu Natal Region (Ncome Med A - Vryheid) Limpopo / Mpumalanga / North West Region (Klerksdorp, Middelburg Female, Rooigrond Med B – Mmabatho, Rustenburg Juvenile) Free State and Northern Cape Region (Douglas, Groenpunt Juvenile – Vereeniging, Groenpunt Max – Vereeniging, Upington) Western Cape Region (Pollsmoor Female, Pollsmoor Maximum, Pollsmoor Med A, Pollsmoor Med B, Voorberg Med B - Porterville 21

22. 7. PHEZULU FENCING (PTY) LTD (Cont…) Details of contract (cont…): Integration (linking) of existing Taut Wire detection systems to the integrated security systems to allow coverage at control rooms, at: Western Cape Region (Malmesbury) Gauteng Region (Johannesburg) Kwazulu Natal Region (Durban/Westville, Embongweni – Kokstad, Pietermaritzburg Eastern Cape Region (St Albans - Port Elizabeth) 22

23. 8. SONDOLO IT Sondolo IT Company was paid R3,576,000.00 million per month during the first quarter of 2010/11 for contract HK2/2005 (access control and cctv cameras) This amount constitute a monthly maintenance fee which is comprised of the following: o Maintenance for VPNR 899,000.00 o Hardware maintenanceR2,600.000.00 o Licensing fee for IMIS softwareR 77,000.00 It is ongoing maintenance fee until the expiry of the maintenance contract on 31 March 2011 23

24. 9. AGE ANALYSIS OF STAFF DEBTS Less than one year R’000 One to three years R’000 Older than three years R’000 June 2010 R’000 2009/10 R’000 Staff debtors 25,45617,51519,10962,08062,730 Total 25,45617,51519,10962,08062,730 24 The above age analysis of staff debts comprises of the following categories: Breach of contract Damages and losses GG accidents Leave without pay State guarantee Tax debt

25. 10. IMPROVEMENT OF PSYCHOLOGICAL SERVICES Upgrading of salary levels for psychologists in 2008/09 – from level 8 - 10 : attracted more psychologists Recruitment drive – August 2010 - received positive feedback that there is interest in some rural areas where previously there was no interest to work there at all Negotiations with tertiary institutions to use Master’s psychology (clinical and counseling) students to do practical work under supervision of university lecturers at correctional centres Utilize volunteers (registered clinical or counseling psychologists) who are registered at the Health Professions Council of South Africa (HPCSA) to render services at correctional centres Health Professionals at Correctional Centre may contract in external psychologist in areas where no departmental psychologist is nearby in cases of emergency (Directorate Health pays the consultation fee) 25

26. 10. IMPROVEMENT OF PSYCHOLOGICAL SERVICES Improvement of psychological services to be incorporated with the concept of Centres of Expertise – still in process Regional Commissioners tasked to improve working conditions of psychologists : 11 Laptops purchased by Directorate Psychological Services and sent to psychologists in Regions Heads of Correctional Centres assisted psychologists with suitable office accommodation Approval by Heads of Centres and HRD for psychologists to attend external training courses to obtain Continuous Professional Development (CPD) points as required by HPCSA Service Level Standards for Psychologists revised, approved and communicated in June 2010 – focus more on group therapy rather than individual therapy in order to improve service delivery and increase offender participation 26

27. 11. OPTIMUM USE OF STAFF Plan to improve distribution of staff for offender management (Security and Corrections) Task Team established for revision of staffing ratios for member inmate ratio based on: Offender Rehabilitation Path requirements alignment of structure and functions of DCS 7 day establishment reclassification of Correctional Centres Envisaged completion date - 30 September 2010 (Approved staffing ratios attached) 27

28. 12. ACTION PLAN FOR FILLING CRITICAL VACANCIES National action plan and progress report as on 30 August 2010 attached Action Plan Advertisement to Interviews to Assumption of duty – From July to October 2010 Progress Report Most Regions busy with short listing 28

29. 13. OFFENDER LABOUR DCS utilise labour and skills of offenders in different work activities as form of skills development and offender empowerment Part of preparing offenders for successful reintegration into community and job market Population of offenders increased drastically - use of offenders in labour activities decreased Decrease attributed to different factors 29

30. CURRENT STATUS Department of Public Works took over maintenance of government buildings through specialized programme “REPAIR AND MAINTENANCE PROGRAMME (RAMP)” DCS used to maintain own buildings through utilization of offender labour Use of DPW in maintenance of correctional facilities led to reduction of utilization of offenders in day to day maintenance Repair and maintenance contracts divided into following trades: -Water and sewerage works -Mechanical and electrical installations (boilers, kitchens etc.) 30

31. CURRENT STATUS -Buildings and related services and civil infrastructure -Civil works, roads, storm water and services -Buildings, related services, electrical, mechanical installations and civil infrastructure (for smaller prisons) DCS had over years two streams of artisans especially at big management areas: –Building works group - strictly responsible for building new structures –Maintenance group - responsible for maintenance of facilities up to R30 000.00 per case limit - anything above limit referred to DPW for funding and implementation 31

32. CURRENT STATUS Building and maintenance programme –Building works team had own offender teams and likewise maintenance team –Over years building works teams became depleted due to scarcity of work opportunities as DPW reluctant to approve major projects to be undertaken by building works teams –In some management areas these teams were absorbed by the maintenance teams 32

33. CURRENT STATUS Agriculture DCS has 21 Correctional Centre farms and 101 smaller vegetable production sites - cover an area of 40 000 hectares Following agricultural activities taking place at these correctional centre farms: -Vegetable production -Fruit production -Milk production -Red meat abattoirs -White meat abattoirs (Chicken) -Piggeries 33

34. CURRENT STATUS Since 1984 number of farms stagnant – Last Correctional Centre farm obtained 1983 (Glencoe) Limits expansion of agricultural production and self- sufficiency Of 40 000 ha - 20 885 ha designated for grazing and 8426 for arable land Production workshops Average offender labour (warm bodies) in correctional centres workshops is 1744 which include Wood and Steel workshops, Textile workshops and Bakeries Materials Budget for 2010/2011 is R3 853 500 for all the wood & steel workshops. Ideal budget for wood and steel workshops is 47 000 000. Budget allocation is zero based but should be cumulative to accommodate increase in prices for commodities 34

35. CURRENT STATUS Availability of sufficient offender labour Number of offenders required to meet current labour need in agriculture is 6888 offenders average per day Department has managed to provide 2905 offenders daily on average during 2009/2010 35

36. FACTORS CONTRIBUTING TO DECREASE IN OFFENDER LABOUR Lack of spans allocated due to implementation of 2x12 hour shift system Shortage of security personnel (horse back, dogs, etc.) who can be allocated to different spans for security Low pace of acquisition of agricultural farms and grazing land Insufficient Budget allocation and agriculture budget not under the direct control of agriculture personnel Reduction of working hours of offenders by Heads of Correctional Centres Salary scales do not attract Artisans and Agriculture Technicians to DCS 36

37. FACTORS CONTRIBUTING TO DECREASE IN OFFENDER LABOUR No correctional officials allocated to Artisans to guard offenders when they work - Artisans supposed to work, guard and train offenders Offender to official ratio will reduce to at least 1 Artisan for 3 offenders instead of the current 1:8 if not guarded by security staff or Correctional Officials Gratuity scale of offenders not reviewed since 2004. Offenders not remunerated according to work and knowledge / training but to security classification 37

38. 14. Remand Detention Classification System Draft Legislation submitted together with draft White Paper for consultation & finalization – Going to Cluster and then Parliament Classification tool, framework / protocol dependent on outcome of consultation (See report attached) 38

39. 15. CELL PHONES IN CORRECTIONAL CENTRES Policy procedures are clear – senior managers and other persons that must use cell phones in professional capacity may have cell phones Inmates not allowed to have cell phones (See report attached) 27 of 41 ATDs who escaped recaptured (including the two that were recaptured in Lesotho) They remain incarcerated at Groenpunt Management Area Cases to be heard in court on 30 September 2010 Internal Disciplinary Processes 39 16. HARRISMITH ESCAPES

40. 17. KIMBERLEY – LESSONS FROM RIOTS – ALLEGATION EST MEMBER Centre handed over Nov 2009 & inmates admitted from 19 January 2010 End February 2010 Centre started operating Presently 2503 offenders - transferred from all Regions – mostly Western Cape and Gauteng Medium classified offenders - also lifers that have been classified mediums and have committed serious crimes Lessons learnt from recent riot Profiling of offenders - ensure suit category needed for type of Centre Classification tool must be revisited Adherence to security measures and policies Complaints of offenders be attended to on time Placement of officials - mixture of experienced and less experienced Provision of Leadership by HCC Allegation about EST member with his dog All EST dogs do not respond to name when called to do so Communication sent to management areas sensitizing them about naming of dogs 40

41. 18. CHAIRPERSONS : PAROLE BOARDS 41 RegionStatus KZN8 Shortlisting done. Received shortlisting memoranda and submitted to CDC on 27/08/2010. WC10 Interviews completed. Memoranda to be couriered Monday 6 September 2010 FS/NC7 Shortlisting completed. Memorandum submitted to the RC for signature EC9 Shortlisting done. Received shortlisting memoranda and submitted to CDC on 23/08/2010. Gauteng11 Busy with shortlisting LMN8 Initial memorandum still in the office of the Commissioner.

42. 19. PAROLE BOARD OFFICES Summary : Parole Board Offices Completed-47 Tender Phase-3 in KZN (Durban = 2; PMB = 1) 1 in Gauteng (Zonderwater) Construction Phase-2 in Gauteng (Odi & Baviaanspoort) It is correct that the Parole Board office at Rustenburg was only completed after expiry of the term of the chairperson. However the chairperson was allocated an office to perform her duties while the parole board office was under construction (Breakdown of report on Parole Board Offices attached) 42

43. 20.DURBAN ESCAPES - IMPROPER CONDUCT – KOKSTAD OFFICIAL – WILSON MATTER Durban Escapes 16 Officials involved 9 guilty of misconduct 2 not guilty 5 disciplinary hearings pending 9 guilty of misconduct 3 received final written warning 4 suspended without pay for 3 months 2 suspended without pay for 3 months Kokstad (Ebongweni) Official Improper Conduct Investigation finalized – official summarily dismissed – official registered case of unfair dismissal against department Two more officials summarily dismissed for sleeping on duty while incident took place Area Commissioner redeployed all female officials to control rooms and administrative posts Further investigations to determine whether more officials were involved 43

44. 20.DURBAN ESCAPES - IMPROPER CONDUCT – KOKSTAD OFFICIAL – WILSON MATTER Amarivathee Wilson Cases against all officials involved withdrawn except for HCC due to 7 years lapse HCC case for not acting against officials within necessary timeframe pending 44

45. 21.VETTING OF OFFICIALS IN DCS 45 Senior Management Total Officials Total VettedPercentage Vetted Total Requiring Vetting % not Vetted CDC/RC15213.4%1386.6% DC24312.5%2187.5% Directors1321712.9%11587.1% Total1712212.9%149 Staff Total Officials Total VettedTotal Not Vetted % Vetted% Not Vetted Non-Centre Based 616 Centre Based 1862 Total2478384736.1%93.9% (Breakdown of security clearance levels attached)

46. 22.INTERNAL AUDIT The following documents are provided (attached) to indicate the functioning of Internal Audit in DCS: Rolling Three Year Strategic Internal Audit Plan for period ending 31 March 2013 and Annual Audit Plan for period ending 31 March 2011. This document indicates the audits to be conducted as was approved by the Audit Committee. It also indicates the current capacity as well as the capacity constraints Progress made with the Internal Audit projects for the 2009/10 financial year - This document indicates the progress regarding audits that had to be performed for the 2009/10 financial year. This might give an indication of effectiveness taking into account the current capacity in Internal Audit Meeting at 30 March 2010 Audit Committee commended Internal Audit for finalising all projects on the Internal Audit Plan for the year ending 31 March 2010 despite capacity challenges 46

47. WAY FORWARD Prioritising of building capacity in Internal Audit and Vetting Unit Policies and Procedures on offender labour be reviewed Shift systems within correctional centres to be tailored to suite needs of specific correctional centre and therefore maximizing offender labour Spans allocation to be revived Offender labour also to be geared towards poverty alleviation projects as way of reparation and restoration Utilisation of external contracts in maintaining buildings in correctional centres be minimized and use offenders as part of their training National Treasury to advice on review of offender gratuity Appropriate allocation of funds for day-to-day maintenance and building and civil works by regions 47

48. 48