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


Municipal Supply Chain Management Regulations, 2005

Chapter 1: Establishment and Implementation of Supply Chain Management Policies

2. Supply chain management policies


(1) Each municipality and each municipal entity must in terms of section 111 of the Act have and implement a supply chain management policy that—
(a) gives effect to—
(i) section 217 of the Constitution; and
(ii) Part 1 of Chapter 11 and other applicable provisions of the Act;
(b) is fair, equitable, transparent, competitive and cost effective;
(c) complies with—
(i) the regulatory framework prescribed in Chapter 2 of these Regulations; and
(ii) any  minimum  norms  and  standards  that  may  be prescribed in terms of section 168 of the Act;
(d) is consistent with other applicable legislation;
(e) does not undermine the objective for uniformity in supply chain management systems between organs of state in all spheres; and
(f) is consistent with national economic policy concerning the promotion of investments and doing business with the public sector.


(2) The supply chain management policy of a municipal entity must, in addition to complying with subregulation (1), and to the extent determined by the parent municipality, also be consistent with the supply chain management policy of the parent municipality. If the supply chain management policy of an entity is not consistent with the supply chain management policy of its parent municipality, the council of the parent municipality must take appropriate steps to ensure consistency.


(3) No municipality or municipal entity may act otherwise than in accordance with its supply chain management policy when—
(a) procuring goods or services;
(b) disposing of goods no longer needed;
(c) selecting contractors to provide assistance in the provision of municipal services otherwise than in circumstances where Chapter 8 of the Municipal Systems Act applies; or
(d) in the case of a municipality, selecting external mechanisms referred to in section 80(1)(b) of the Municipal Systems Act for the provision of municipal services in circumstances contemplated in section 83 of that Act.


(4) Subregulations (1), (2) and (3) do not apply in the circumstances described in section 110(2) of the Act except where specifically provided otherwise in these Regulations.