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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)


Municipal Supply Chain Management Regulations, 2005

Chapter 2: Framework for Supply Chain Management Policies

Part 2: Acquisition management

11. System of acquisition management


(1) A supply chain management policy must provide for an effective system of acquisition management in order to ensure—
(a) that goods and services are procured by the municipality or municipal entity in accordance with authorised processes only;
(b) that expenditure on goods and services is incurred in terms of an approved budget in terms of section 15 of the Act;
(c) that the threshold values for the different procurement processes are complied with;
(d) that bid documentation, evaluation and adjudication criteria, and general conditions of a contract, are in accordance with any applicable legislation; and
(e) that any Treasury guidelines on acquisition management are property taken into account.


(2) A supply chain management policy, except where provided otherwise in these Regulations, does not apply in respect of the procurement of goods and services contemplated in section 110(2) of the Act, including—
(a) water from the Department of Water Affairs or a public entity, another municipality or a municipal entity; and
(b) electricity from Eskom or another public entity, another municipality or a municipal entity.


(3) A municipality or municipal entity procuring goods or services contemplated in section 110(2) of the Act must make public the fact that it procures such goods or services otherwise than through its supply chain management system, including—
(a) the kind of goods or services; and
(b) the name of the supplier.