Pieter Groenewald, the government of national unity (GNU) Minister of Correctional Services, inherited a debt said to be in the order of R4 billion plus owed to the Department of Public Works and Infrastructure (DPWI) when he took over the portfolio from Ronald Lamola.
R1.669 billion of the debt, for accommodation charges, Groenewald told a Parliamentary questioner, was as of 30 June 2024 in dispute with the Department of Public Works and Infrastructure. Another R2.728 billion, including interest, for municipal services, is also being disputed.
Questioner, Rikus Badenhorst, a Democratic Alliance (DA) Western Cape National Council of Provinces (NCOP) public representative, was further informed by Groenewald the municipal invoice for shared savings and energy contracts was not settled timeously “due to long outstanding requested supporting documentation”. This is in line with what Badenhorst was told by Defence and Military Veterans Minister Angie Motshekga when he asked about monies, seemingly also in the region of R4 billion, the Department of Defence (DoD) owed DPWI.
In her response to Badenhorst’s question, Motshekga said Minister Dean Macpherson’s department was claiming money without providing proof of services supplied. The DA Member of Parliament (MP) was told, in the case of the DoD, it is dissatisfied with the payment claim adding DPWI was “officially informed”.
On the Department of Correctional Services (DCS) debt, Badenhorst was told there were several meetings with senior representatives from Groenewald’s department, National Treasury and DPWI regarding the disputed amounts and all ended without resolution.
A discussion for additional funding between the three “did not yield the desired result”.
DCS will continue “engaging the relevant stakeholders until this matter is fully resolved” the Ministerial reply reads, adding the disputed amounts are in the department’s annual report and financial statements listed as “unconfirmed inter-governmental payables”.
Groenewald stated it is also worth noting that “the Department of Correctional Services is underfunded to meet financial commitments pertaining to municipal payments.”