The cancellation of the controversial Bosasa catering contract to feed thousands of inmates in SA’s prisons could have spinoffs for Nelson Mandela Bay SMMEs and other suppliers.
This is according to the correctional services department, which has now insourced the catering at almost all the prisons, including those in the Eastern Cape.
The spinoffs from insourcing the catering could include job creation in the metros and towns where the department’s centres are based.
Bosasa, now named African Global Operations, provided food to thousands of offenders around the country, but the company has since been placed under voluntary liquidation.
The Bosasa contracts, which saw 26 prison kitchens provided with food and resources, totalled more than R480m over a period of 36 months.
In February, correctional services served Bosasa with a 30-day notice, stating it would be canning the contracts, which were then officially terminated on March 24.
Shortly afterwards, justice and correctional services minister Michael Masutha said there were 239 operational correctional centres in SA, with 226 kitchens catering for about 162,000 offenders as at the end of January.
Of the 226 kitchens, 26 – with 46,434 inmates (29%) – were serviced by Bosasa, while 112,754 inmates (71%) received nutrition services in-house.
The Bosasa contract included kitchens in seven correctional services management areas, including St Albans in the Nelson Mandela Bay metro, Kgosi Mampuru in Pretoria, Johannesburg, Modderbee in Benoni, Krugersdorp, Durban and Pollsmoor in Cape Town.
Of these centres, the St Albans management area, which includes three centres inside the St Albans Prison grounds – Medium A, B and Maximum – as well as the Patensie and Port Elizabeth correctional centres, will see Bay businesses benefit.
The St Albans management area houses 5,953 offenders, of which 4,292 are sentenced and 1,662 are awaiting trial.
Correctional services spokesperson Logan Maistry said that, as of last week, all 26 kitchens that were part of the Bosasa deal had started to insource their operations.
“The department’s response to insourcing is staggered into short- to medium-term, and medium- to long-term.”
In mid-March, the department invited potential service providers to submit expressions of interest for the supply and delivery of perishable goods and groceries, pest control services and waste-food disposal.
SMMEs, co-operatives, wholesalers, fresh farm producers, bakeries, abattoirs and butcheries were all urged to submit their documents.
This information will be used to compile a list of potential suppliers.
Maistry said the aim was to build a supplier database which allowed them to stimulate and grow local businesses.
“We want to empower businesses and stimulate the economy in and around the areas where the centres are based.
“This has been happening in various areas across the country already and is part of a national plan by the department.”
By stimulating local business, it would lead to job creation through the development of SMMEs.
Nelson Mandela Bay Business Chamber operations manager Prince Matonsi said businesses, generally, tended to outsource non-core activities.
“So it might well be that correctional services sees this as a core area of its business, hence they will derive savings through the move.”
Asked if it would lead to job creation, Matonsi said it seemed more a case of job retention than creation.
“The business chamber always welcomes initiatives that root out corruption and create greater efficiencies or better service in the system.
“We do hope there will be greater transparency in the way the local suppliers will be selected and awarded business,” Matonsi said.