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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

32. Procurement of goods and services under contracts secured by other organs of state


(1) A supply chain management policy may allow the accounting officer to procure goods or services for the municipality or municipal entity under a contract secured by another organ of state, but only if—
(a) the contract has been secured by that other organ of state by means of a competitive bidding process applicable to that organ of state;
(b) the municipality or entity has no reason to believe that such contract was not validly procured;
(c) there are demonstrable discounts or benefits for the municipality or entity to do so; and
(d) that other organ of state and the provider have consented to such procurement in writing.


(2) Subregulation (1)(c) and (d) do not apply if—
(a) a municipal entity procures goods or services through a contract secured by its parent municipality; or
(b) a municipality procures goods or services through a contract secured by a municipal entity of which it is the parent municipality.