Acts Online
GT Shield

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 4: Other Matters

47. Inducements, rewards, gifts and favours to municipalities, municipal entities, officials and other role players


(1) No person who is a provider or prospective provider of goods or services to a municipality or municipal entity, or a recipient or prospective recipient of goods disposed or to be disposed of by a municipality or municipal entity, may either directly or through a representative or intermediary promise, offer or grant—
(a) any inducement or reward to the municipality or municipal entity for or in connection with the award of a contract; or
(b) any reward, gift, favour or hospitality to—
(i) any official of the municipality or municipal entity; or
(ii) any other role player involved in the implementation of the supply chain management policy of the municipality or municipal entity.


(2) The accounting officer of a municipality or municipal entity must promptly report any alleged contravention of subregulation (1) to the National Treasury for considering whether the offending person, and any representative or intermediary through which such person is alleged to have acted, should be listed in the National Treasury’s database of persons prohibited from doing business with the public sector.


(3) Subregulation (1) does not apply to gifts less than R350 in value.