Convicts in South African prisons are running illicit money-lending schemes

The Minister of Correctional Services, Pieter Groenewald, revealed that they have uncovered two illicit money-lending schemes in prisons.

Groenewald shared this information following questions from National Assembly Member Dereleen James about these illicit schemes.

She asked Groenewald for details about illicit money-lending schemes operated by inmates in South African prisons.

She also asked which centres have uncovered such activities and what measures are in place to detect, prevent, and address them.

The Minister confirmed that two illicit money-lending schemes were identified, which involved inmates and officials.

The one scheme at the Empangeni Medium Centre involved an inmate lending money to an official. This case is still under investigation.

In another case, at the Ladysmith Remand Detention Facility, officials are borrowing money from an inmate. Three officials were dismissed in 2025.

There was also an incident at Bethal Correctional Centre in 2024, where an official took an offender’s card and withdrew money from his bank account.

Groenewald said that measures to reduce such occurrences of illicit money-lending schemes include intelligence-driven operations.

They have also implemented enhanced search and surveillance systems and the strategic rotation of personnel in high-risk environments.

“The Department has designed interventions to disrupt illicit activities before they occur and to maintain secure and controlled facilities,” he said.

It includes addressing officials about money-lending schemes during parades and security meetings.

There is also daily interaction with informants regarding contraband smuggling and other risks, which can lead to surprise searches.