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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

3. Adoption and amendment of supply chain management policies


(1) The accounting officer of a municipality or municipal entity must—
(a) promptly prepare and submit a draft supply chain management policy complying with regulation 2 to the council of the municipality or the board of directors of the municipal entity for adoption;
(b) at least annually review the implementation of the policy; and
(c) when the accounting officer considers it necessary, submit proposals for the amendment of the policy to the council or the board of directors.



(a) The accounting officer may for purposes of subregulation (1)(a) make use of any Treasury guidelines determining standards for municipal supply chain management policies, and submit to the council or board of directors that guideline standard, or any modified version thereof, as a draft policy.
(b) If the accounting officer submits a draft policy to the council or board of directors that differs from the guideline standard, the accounting officer must ensure that such draft policy complies with regulation 2.
(c) The accounting officer must report any deviation from the guideline standard to the National Treasury and the relevant provincial treasury.


(3) When preparing or amending its supply chain management policy, a municipality or municipal entity must take account of the need for uniformity in supply chain practices, procedures and forms between organs of state in all spheres, particularly to promote accessibility of supply chain management systems for small businesses.


(4) The accounting officer of a municipality must in terms of section 62(1)(f)(iv) of the Act, and the accounting officer of a municipal entity must in terms of section 99(2)(h) of the Act, take all reasonable steps to ensure that the municipality or municipal entity has and implements a supply chain management policy as set out in regulation 2.