Cape Town — With the correctional services department denying reports of commissioner Linda Mti's resignation, the Democratic Alliance (DA) has called on the commissioner to step down.

According to reports, Mti handed in his letter of resignation to Correctional Services Minister Ngconde Balfour following heavy criticism by Parliament for diverting funds it had approved to build new prisons to maintain those that were in a state of disrepair.

The Public Service Commission is conducting an inquiry into whether Mti acted out of a conflict of interest when the department awarded lucrative fencing, information technology, catering and security contracts worth about R800m to companies with which he was allegedly associated.

The companies inc-lude Bosasa, Sondolo IT and Phezulu Fencing.

Mti has denied these allegations.

Correctional services spokesman Manelisi Wolela also denied Mti had resigned. "It is not true. The commissioner has not resigned," he said.

DA correctional services spokesman James Selfe said Mti's performance had been decidedly "underwhelming" and he should resign, whatever the outcome of the commission's probe.

The department had received several qualified audit reports from the auditor-general and had failed to fill vital management posts that had been budgeted for.