Act on fake documents or we will: AG to DCS

The Auditor-General will use its own powers against Correctional Services if the department fails to act on the falsified documents that cost it a clean audit.

Michelle Magerman, business unit leader at the Auditor-General of South Africa (AGSA), told the NCOP Select Committee on Security and Justice on Wednesday, 28 October 2026, that the department has had since July to deal with the matter.

"In terms of the investigation, as the Auditor-General, we do continue with assessing this fraudulent documentation, while not taking away the role of the accounting officer as well as the minister, because the minister did indicate that the case was taken to the Hawks.

"We are following up, and we have already initiated the start of the audit process with the department for the 2026-27 financial year.

"We will be assessing whether the appropriate actions have been taken by the department. Should they not have been taken by the department or the minister, then we will, as the Auditor-General, look at the material irregularity definition and implement that.

"At the moment, we do note that this has been taken to the Hawks by the minister and the department. We will be inquiring with them very soon. I think next week we are meeting with them to determine how far they are with the case and should they not do their function, then we will implement our powers.

"But we have given them since July to reflect and take the necessary steps. So we will look at whether the actions taken were appropriate. If they're not appropriate, then we will take the actions that we deem appropriate in terms of the falsified documentation," she said.

Under the material irregularity process, the Auditor-General can recommend action and then issue binding remedial action.

If that is ignored, it can issue a certificate of debt that makes the accounting officer personally liable for the loss.

AGSA senior manager Omphemetse Setebe explained why the department got a disclaimer.

"This was mainly due to the information that was submitted for auditing, some of it not being authentic, where we identified that there had been documents that were tampered with, altered or falsified. This cast significant doubt over management integrity.

"That is how we provided the outcome of a disclaimer of opinion, due to the authenticity of the information not being able to be confirmed, meaning that we are not able to rely on the representations provided by management," Setebe said.

She said that AGSA had told the department to dig into each case.

"We recommended to the department that they investigate the specific instances, so that they understand the pervasive nature and the broad exposure within the department, and that it be dealt with swiftly, to ensure there is also improvement in controls. There must be a focus on preventative controls into the future, ensuring that there is outright compliance by the department," she explained.

Setebe said AGSA has not yet checked whether the department kept its promise to go to the police.

"There was also an issue in relation to whether the department can investigate themselves. The accounting officer did, as part of the feedback, indicate that he would open a case with the relevant law enforcement bodies. So we did not take it as AG, but we do have an indication that the accounting officer committed in a meeting that he would open a case. We are yet to follow up further," she said.

She then asked the committee to monitor the progress of this matter.

"We are requesting that you closely monitor progress on the appointment of the forensic investigation and the implementation of its recommendations, timeous consequence management, and the implementation of heightened internal controls," Setebe said.

Committee chairperson Jane Seboletswe Mananiso said: "We have a collective concern regarding fraud and the falsification of documentation in DCS."

Minister Pieter Groenewald previously said that the Auditor-General flagged 54 of the 74 suppliers appointed on the R1.6 billion tender.

Groenewald suspended four senior officials, including the chief financial officer, in September, and a case was opened with the Hawks. National Commissioner Makgothi Thobakgale said the officials remain on full pay.

The department has disputed how the Auditor-General reached the disclaimer.

But AGSA told Africa Daily that the department had not disputed submitting falsified documents.