Finance, procurement and asset policies · 02
Supply chain management and procurement policy
States how the organisation buys: thresholds, methods, committees and the record each produces.
States how the organisation buys: thresholds, methods, committees and the record each produces.
Set the procurement thresholds and the method for each band; the composition and quorum of the specification, evaluation and adjudication committees, and who may not sit on them; the declaration of interest at each stage; evaluation criteria published in advance and applied as published; deviation and confinement rules with written reasons; contract management after award; and the supplier database and its screening.
For a municipality the policy itself is a statutory requirement under section 111 of the MFMA, and councillors may not sit on bid committees. In the national and provincial sphere, the preference regime under the Preferential Procurement Policy Framework Act and its current regulations must be applied as the regulations stand rather than as the organisation would prefer; a preference point system applied outside the regulations produces an award that can be set aside. And every deviation must carry contemporaneous written reasons: reasons composed afterwards are where irregular expenditure findings begin.
The law it sits under
What governs this instrument.
For a public entity, supply chain management is governed by the Public Finance Management Act 1 of 1999 and the Treasury Regulations; for a municipality by the Local Government: Municipal Finance Management Act 56 of 2003 and its Supply Chain Management Regulations. Note that the Public Procurement Act 28 of 2024 had not commenced as at August 2026, so a policy drafted to it rather than to the framework actually in force would be premature.
Related pages, tools and documents
Where this instrument sits in the wider set, and the engagement that produces it.
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