annual implementation report · supply chain management annual implementation report - 2013/2014...

SUPPLY CHAIN MANAGEMENT

ANNUAL IMPLEMENTATION REPORT

30 June 2014

Notice 10/2014

SCM Regulation (6)(2)(a)(i) of the Municipal Supply Chain Management Regulations

Supply Chain Management Annual Implementation Report - 2013/2014

TABLE OF CONTENTS

1. Introduction .............................................................................................................................................. 3

2. Implementation of the SCM policy ........................................................................................................... 3

3. The Bid Committee System ....................................................................................................................... 4

4. Municipal Supply Chain Management Unit organisational structure, training and personnel ............... 6

5. Competency Levels of the Supply Chain Management Unit .................................................................... 6

6. Implementation of Preferential Procurement Regulations 2011 ............................................................. 7

7. Demand Management and Supplier database of accredited suppliers .................................................. 8

8. Supply Chain Management acquisition processes ................................................................................... 8

9. Reporting to National Treasury ................................................................................................................ 8

10. Bids awarded by the Bid Adjudication Committee (Above R 200,000) ..................................................... 8

11. Bids awarded by the Municipal Manager (Above R 10 Million) ................................................................ 9

12. Bids awarded by the Municipal Manager – Formal written price quotations (R 30,000 to R 200,000) ... 9

13. Database of Restricted Suppliers ............................................................................................................... 9

14. Supply Chain Management Deviations – 2013/2014 ................................................................................ 9

15. Unsolicited bids (SCM Regulation 37) ..................................................................................................... 10

16. Awards to persons in the service of the state ......................................................................................... 10

17. Awards to close family members of persons in the service of the state ................................................ 10

18. Transversal contracts (SCM Regulation 32) ............................................................................................. 10

19. Risk management ....................................................................................... Error! Bookmark not defined.

20. Gifts, Inducements, favors and Sponsorships (SCM Regulation 47 & 48) ............................................... 11

21. SCM information on Website ..................................................................... Error! Bookmark not defined.

22. Construction Regulations 2014 (OHS) .................................................................................................... 11

23. Inventory and logistics ............................................................................................................................. 12

24. Asset disposal management .................................................................................................................... 12

25. Contract performance ............................................................................................................................. 11

26. Construction Industry Development Board (CIDB) ................................................................................. 13

27. Tenders and formal quotations issued .................................................................................................... 13

28. Irregular expenditure ............................................................................................................................... 14

29. Challenges in implementing the SCM Policy ........................................................................................... 14

30. Recommendations for improvement and implementation .................................................................... 14

31. Conclusion ................................................................................................................................................ 15


SUPPLY CHAIN MANAGEMENT ANNUAL IMPLEMENTATION REPORT

01 July 2013 to 30 June 2014

1. Introduction

The Local Government: Municipal Finance Management Act, No 56 of 2003, (the ‘MFMA”) requires the municipality to have and implement a Supply Chain Management Policy which gives effect to the provisions of Part 1 of Chapter 11 of the Act that deals with ‘Supply Chain Management’. On the 30th May 2005 the Municipal Supply Chain Management Regulations were issued. As a Medium capacity municipality, Nama Khoi Municipality had to comply with the provisions of the Regulations from 01 January 2006. The SCM Policy, together with the applicable set of delegations was approved by Council June 2013 at a legally constituted Council meeting. Although the MFMA prohibits a councillor from being a member of a bid committee or any other committee evaluating or approving quotations, bids or tenders the council has an oversight role to ensure that the accounting officer implements all supply chain management activities in accordance with this policy. For the purposes of such oversight the Regulations require that the accounting officer must - (a) Within 30 days of the end of each financial year, submit a report on the implementation of the policy to the Council. In accordance with the SCM Regulation (6)(2)(a)(i) of the Municipal Supply Chain Management Regulations, I hereby submit the legislative required report on the SCM implementation of Nama Khoi Municipality for the period 01 July 2013 to 30 June 2014. The report is a summary of the SCM implementation and highlights and will aim to enhance and strengthen council oversight role.

2. Implementation of the SCM policy

No amendments were made during the year 2013/2014 to the SCM Policy. However the SCM policy was amended as part of the 2014/2015 budget process and adopted on the 29 May 2014. History of amendments of SCM policy is as follows:

Ref.

Details

Paragraphs of policy

Effective dates

0.00

SCM policy adopted

SCM Policy adopted 31 August 2005

0.01

SCM policy amended (22 June 2006 per Council Resolution 4.3)

12(1)(a), 37(2)(c), 43(3) 22 Jun3 2006

0.02

SCM policy amended (6 November 2007 per Council Resolution 6)

12(1)(a), 43(1) 6 November 2007

0.03

SCM policy amended (19 November 2010 per Council Resolution 3.1.24)

12(1)(a) 19 November 2010

0.04

Entire SCM Policy amended in English

Entire Policy June 2013

0.05

SCM Policy adopted

SCM Policy adopted 29 May 2014


3. The Bid Committee System

3.1. The Bid Committee system for competitive bids has been actively applied within the municipality over the past financial year on all bids over R 200,000-00. Officials are still being invited on an ad-hoc basis to participate in the committees as and when required, but with written delegations in order to participate in the committees. Officials are required to declare any possible conflict of interests at the meetings and recuse themselves in the event of a possible conflict.

3.2. These bid committees have insured that contract awards and recommendations are compliant,

transparent, equitable, competitive and cost effective.

3.3. The following committees have been established:

a) The bid specification committee

The bid specification committee compiles the specifications for the procurement of goods or

services by the municipality. The committee is appointed by the Accounting Officer and must be

composed of one or more officials of the municipality, preferably a Supply Chain Management

Practitioner and the manager responsible for the function involved, and may when regarded

appropriate by the Accounting Officer, include external specialist advisors. The Accounting Officer is

appointed for each tender.

b) The bid evaluation committee

The bid evaluation committee is appointed by the Accounting Officer and must as far as possible be

composed of- officials from departments requiring the goods or services; and

officials from departments requiring the goods or services; and

at least one supply chain management practitioner of the municipality.

c) The bid adjudication committee

The bid adjudication committee must consist of at least four senior managers of the municipality

which must include –

the chief financial officer or, if the chief financial officer is not available, another manager in the

budget and treasury office reporting directly to the chief financial officer and designated by the

chief financial officer;

at least one senior supply chain management practitioner who is an official of the municipality;

and

a technical expert in the relevant field who is an official of the municipality, if the municipality

has such an expert.


3.4. Composition of current committee as appointed by the Acting Municipal Manager on the 24 of June

2014 are as follows:

BID SPECIFICATION COMMITTEE (BSC)

B Boois – Supply Chain Management Unit - Chairman R Gertse - Supply Chain Management Unit H Cloete – Budget At least one person from user department (Appointed with each procurement request) J Fortuin – Safety Officer/SHE Officer in the case of Construction works Consultant cop-opted by Municipal Manager in the case of specialist goods and services required where municipality do not have skills and competencies to compile specifications. BID EVALUATION COMMITTEE (BEC)

P Lomabard – Sportsgrounds and Cemetaries- Chairman C Bonn – Project Management Unit (PMU) B Waters – Roads, Sewerage, Storm water, Mechanical Workshop and water T Beukes – Electrical Services R Gertse – Supply Chain Management Unit J Rooi – Supply Chain Management Unit Consultant cop-opted by Municipal Manager

BID ADJUDICATION COMMITTEE (BAC) Chief Financial Officer - Chairperson Manager : Technical/ Civil Services Manager: Electrical Services Manager : Community Services Manager : Corporate Services B Boois – Supply Chain Management Unit P Van Den Heever – Supply Chain Management Unit Consultant cop-opted by Municipal Manager not involved in evaluating bids

OBSERVER IN COMMITTEES (REGULATION 26(1)(C)

Any person from Internal Audit Unit nominated by CAE (Mrs Annemarie Beukes) APPEALS IN TERMS OF SCM REGULATIONS (REGULATION 50(1)

Person appointed by Municipal Manager not involved in SCM Processes of the municipality

BLACKLISTING COMMITTEE (RESTRICTION OF SUPPLIERS FOR NON-PERFORMANCE)

Legal expert co-opted by Municipal Manager - Chairperson Chief Financial Officer Manager : Technical/ Civil Services Manager: Electrical Services Manager : Community Services Manager : Corporate Services Manager: Develepment 7 Town Planning B Boois – Supply Chain Management Unit Senior official C Bonn - PMU


4. Municipal Supply Chain Management Unit organisational structure, training and personnel

In terms of Paragraph 7 of the Municipal Supply Chain Management Regulations (MSCMR) the municipality must establish a Supply Chain Management Unit (SCMU) to implement its supply chain management policy. The SCMU must operate under the direct supervision of the Chief Financial Officer or may be delegated to an official in terms of Section 82 of the MFMA. During the reporting period the staff complement that performed the duties and functions in terms of the SCM

policy were as follows:

Staff member Key duties SCM Training

Snr Accountant: Expenditure - Supply Chain Management: B R Boois

Co-ordinates and controls the implementation of the SCM Policy Bid committees

PALAMA University of Stellenbosch – Unit Standard 116353

Assistant Accountant: Supply Chain Management: R Gertse

Assists with the co-ordinates and controls the implementation of the SCM Policy Bid committees SCM Supplier Database Tenders and contracts

University of Stellenbosch – Unit Standard 116353

Stores controller : C T Abrahams

Supply Chain Management Practitioner Processing of procedures for procurement up to R 30 000 – Request Quotations Processing of Orders Supervise staff in Stores Setting of Inventory levels Ensure that stock is safequarded

None

Stores clerk:J Rooi

Processing of Stock Issues Receipt of Goods Issuing of fuel (Petrol & Diesel)


SCM Administrative Officer: P Van Den Heever

Processing of Orders SCM Database SCM Deviations Bid Committees CIDB Administration


SCM Administrative Officer E Witbooi (resigned in December 2013)

Processing of Orders SCM Database SCM Deviations

Attended Fraud Prevention session and Provincial Treasury SCM Training

5. Competency Levels of the Supply Chain Management Unit

As per Government Gazette No. 29967 issued on the 15 June 2007 – The Municipal Regulations on Minimum Competency Levels, 2007 (Effective from 1 July 2007), Regulation in terms of section 168 of the Municipal Finance Management Act, 2003 (Act No. 56 of 2003) officials appointed in the SCM unit should attain the following; a) Higher education qualification b) Work related experience c) Core managerial and/or occupational competencies d) Competency in the prescribed unit standards


The following officials have completed the requirements:

Official

Designation Higher education

qualification

Work related

experience

Competency

training

Mr B Boois Head: Supply Chain

Management Unit

Completed a

National Diploma

(NQF Level6)

Busy with 3rd level

BCompt: Financial

Accounting Degree

(NQF Level 7)

Appointed on

the 01 July

2007

Completed

Mrs R Gertse Supply Chain Manager Matric Appointed on

the 01 July

2007

In process

6. Implementation of Preferential Procurement Regulations 2011

6.1. The revised Preferential Procurement Regulations, 2011 was promulgated by the Minister of Finance on 8 June 2011 in Government Gazette No 34350. These Regulations came into effect on the 7 th December 2011. These Regulations are implemented on a continuous basis by Nama Khoi Municipality.

6.2. Preferential Procurement Regulations, 2011 (Regulation 9) makes provision for the promotion of local

production and content. Regulation 9.(1) prescribes that in the case of designated sectors, where in the award of bids local production and content is of critical importance, such bids must be advertised with the specific bidding condition that only locally produced goods, services or works or locally manufactured goods, with a stipulated minimum threshold for local production and content will be considered.

6.3. Only one bid was advertised and awarded during the year 2013/2014 that was regarded as a designated

sector with 100% local content. Bid description: Protective Clothing Bid number: BOD/NC062/20/2013/2014 Designated sector: Textile, Clothing, Leather and Footwear Minimum threshold for local content: 100% Estimted Contract :R 349,744-81 (Taxes included)

6.4. In terms of paragraph 9(2)(3) a report was made to the DTI and Treasury Chief Procurement Officer.


7. Demand Management and Supplier database of accredited suppliers

In terms of the Municipal Financial Management Act (MFMA) (Act 56 of 2003) Nama Khoi Municipality is required to have a Preferred Suppliers Database. The municipality has implemented a supplier database. An annual advert was placed in the newspapers, website and notice boards to invite prospective suppliers to register on the municipal vendor database. Service providers may register on the database at any stage and there is no closing date for registration. The municipality prepared a Procurement Plan for 2013/2014 which will result in planning for tenders for future financial years to limit deviations but line departments must start to understand the principles of planning of MTREF which must start 3 months prior to start of financial year. Challenges with the supplier database remains that suppliers are unwilling to register on the database. A new development or modification were also requested from the financial system provider to allow the municipality to review the status of suppliers on a quarterly basis in terms of SCM Regulation 12 and sent out a standard template letter to inform them that their need to provide the information to be re-instated on the database. The current database application form has been proven to be a cumbersome document to complete and will the document be reviewed in order to make it more accessible and invitations to register and update the current database be advertised during August/September 2013. Information will also be included from MBD 8. There is a still a fairly large gap between registered, active and compliant suppliers and this could be attributed to the fact that suppliers are disgruntled because there is an expectation of receiving contracts when registering on the database. Registration of suppliers on our database is an ongoing process and the municipality receives applications on a daily basis.

8. Supply Chain Management acquisition processes

The following thresholds are currently being adhered to in order to support the strategic and operational

commitments of the municipality:

8.1. Petty cash purchases - Goods are purchased by way of petty cash purchases, up to a transaction value of R2 000 (VAT included). Transaction value R 300-00;

8.2. Written or verbal quotations Goods and services are procured by way of written or verbal quotations for a

transaction value over R2 000 up to R10 000 (VAT included); 8.3. Formal written price quotations - Goods and services must be procured by way of formal written price

quotations form procurements of a transaction value over R10 000 up to R200 000 (VAT included); 8.4. A competitive bidding process - Goods and services are procured by way of a competitive bidding process

for procurement above a transaction value of R200 000 (VAT included); and the procurement of long term contracts. The SCM Bid adjudication committee (BAC) continues to consider reports including bid recommendations and final awards.

9. Reporting to National Treasury

Reports of all awards made above R 100,000-00 have been submitted to National Treasury in terms of MFMA circular no 19 of 2008.

With reference to section 114 of the Municipal Finance Management Act, Act 56 of 2003 no notifications have

been made during the year, 2013/2014.

10. Bids awarded by the Bid Adjudication Committee (Above R 200,000)

Attached find the bids that were awarded by the Bid Adjudication Committee in terms of the SCM Policy and the Preferential Procurement Policy for the 2013/2014 financial year. [Annexure A]


11. Bids awarded by the Municipal Manager (Above R 10 Million)

Attached find the bids that were awarded by the municipal manager in terms of the SCM Policy and the Preferential Procurement Policy for the 2013/2014 financial year. [Annexure B]

12. Bids awarded by the Municipal Manager – Formal written price quotations (R 30,000 to R 200,000)

Attached find the bids that were awarded by the Municipal Manager – Formal written price quotations in terms of the SCM Policy and the Preferential Procurement Policy for the 2013/2014 financial year. [Annexure C]

13. Database of Restricted Suppliers

13.1. Accounting officers were required, prior to the award of any contract above R100 000, to verify whether the

recommended bidder or any of its directors are prohibited from doing business with the public sector by forwarding an e-mail for such verification to [email protected]. The requirement to submit a request is no longer applicable as this is addressed with the publication of the database. With effect from the date of issuance of the circular (MFMA Circular 56), prior to the award of any contract (this includes contracts emanating from written price quotations in excess of R10 000, competitive bids and limited bids), accounting officers are required to verify the status of recommended bidders [including their director(s)/ owner(s)/ trustee(s)] by checking the Database of Restricted Suppliers in order to ensure that no recommended bidders or any of their directors / owners / trustees are listed as companies or persons prohibited from doing business with the public sector . The amended verification procedures provided above therefore amends the verification procedures contained in MFMA Circular No 46 dated 17 March 2008. The verification procedures relating to the “Register for Tender Defaulters” remains unchanged.

13.2. No awards were made to entities on the list of prohibited suppliers during 2013/2014.

13.3. No entities was listed by Nama Khoi Municipality on the database for non-performance or other

contraventions or abuse of the SCM Policy or procedures during 2013/2014.

14. Supply Chain Management Deviations – 2013/2014

14.1. SCM Deviations was reported as part of the Monthly budget report and quarterly report to Council.

[Annexure D]

14.2. SCM Deviations will be disclosed in a note of the Annual Financial Statements as at 30 June 2014.

14.3. Details of SCM deviations approved by the Accounting Officer in terms of Regulation 36(1) was as follows:.


15. Unsolicited bids (SCM Regulation 37)

None were approved during the financial year.

16. Transversal contracts (SCM Regulation 32)

None were entered into during the financial year.

17. Risk management

All the identified risks within the SCM environment are well managed and the risk register is updated on a quarterly basis with sessions attended with chief risk officer.

18. Awards to persons in the service of the state

In terms of Council’s Supply Chain Management Policy, Paragraph 44, the municipality is prohibited from doing business with any person in the service of the state. There were deviations from this paragraph that were approved by the Accounting Officer during 2013/2014.

Supplier Supplier Relationship

Goods and service Employee/ Organ of state

Amount R

Boesmanland Werkswinkel

Director/ Member of entity

Mechanical parts and repairs

Izak Jenner/ Employed by Kamiesberg Municipality

280,687.31

Amount of awards made

280,687.31

19. Awards to close family members of persons in the service of the state

The Municipality does not encourage awarding of contracts by employees in decision making positions to close family members or friends. To this extent, the Municipality requires of all employees to make full disclosure of businesses owned by close family and / or friends and it is further expected that such individuals must not directly or indirectly be involved in the awarding of such business. The notes to the annual financial statements must disclose particulars of any award of more than R2 000 -00 to a person who is a spouse, child or parent of a person in the service of the state, or has been in the service of the state in the previous twelve months, which particulars shall include:– (a) the name of that person; (b) the capacity in which that person is in the service of the state; and (c) the amount of the award.

Supplier Goods and service

Employee/ Organ of state

Relationship Amount R

Rosy Kitchen Catering A Louw – HR Manager/ Nama Khoi Municipality

Daughter of owner 15,000-00

Amount of awards made

15,000-00


20. Contract performance

Attached find Annexure F.

21. SCM information on Website

Reports on SCM and bid invitations were also available on the municipality’s official website at www.namakhoi.gov.za/scm. Challenges were being experience during the year and as a result not all the information pertaining to SCM was uploaded onto the website, but was advertised on notice boards instead. The administration is currently looking at resolving the matter by training and capacity building initiatives.

22. Construction Regulations 2014 (OHS)

The Department of Labour (DoL) on Monday 10 February 2014 promulgated the Construction Regulations 2014 providing a legislative platform to address health and safety in the South African construction industry. These could have an impact on the municipality construction projects as the burden of reporting could increase on implementation of these regulations. Regulations are implemented in a phased approached. The Department of Labour has announced that all sections of the regulations except for regulations 3 and 5(7)(b) will come into force on 7 August 2014 for projects that began after the promulgation of the latest regulations.


Projects that begin now or are in progress must comply with the 2003 regulations until 7 August when the new regulations will apply. All construction work that started before 7 February 2014 is required to conform with the 2003 regulations until 6 August 2015, when the new regulations will come into force. It is important to note that as of August it will be necessary for all construction professionals to register in one of three categories, namely as a construction health and safety agent, construction health and safety manager, or a construction health and safety officer. The construction permit requirements in the 2014 regulations are separated based on the type of work being done: For larger work an application must be lodged by the owner/ contractor with the Department of Labour 30 days prior to construction work commencing and for smaller work an application must be made to the provincial director 7 days before commencing – interpretation will be required in these cases as the shorter notice period seems to include almost all types of excavation. The regulations impose significant duties regarding record keeping on a construction site and if labour inspectors visit after the regulations come into force then these will be the kind of documents that your registered construction professional must be in a position to produce.

23. Inventory and logistics

The main purpose of the inventory and stores section is to provide the right quality of materials at the right time and the correct quantities to the other departments in the municipality. This is to ensure that services are delivered to the community in a sustainable manner. At the same time the municipality wants to keep inventory levels as low as possible to reduce cash in inventory which could be spent on other activities. Some achievements and focus areas during the year under review: a) Inventory master items was categorised and sub-categorised b) Curbing the number of break-ins at the stores yard c) Reduction of slow moving stores items

24. Asset disposal management

Report will be submitted to council on the disposal of movable assets in the first quarter of 2014/2015.

The Department of Education has been requested on two occasions to collect computer equipment but it seems that they are not interest in broken and obsolete computer equipment.

25. Gifts, Inducements, favors and Sponsorships (SCM Regulation 47 & 48)

In terms of paragraph 50 of the SCM Regulations please find notification of sponsorship that was obtained from a supplier of goods and services.

Supplier Services Payment made by

NPO Foundation

Amount of

sponsorship

Reason

Suid - Kaap

Waardeerders

Valuation

Services

Contract

Nobantu Foundation

(NPO: 107-081

R 10,000-00 Funds was requested

for Womans day

No Gifts, Inducements, favors was reported during the year 2013/2014.


26. Construction Industry Development Board (CIDB)

Bids published on the Register of Projects includes the following:

Tenders Advertised and Not Closed 0

Tenders Closed and Not Awarded 2

Tenders Awarded 12

Pending Tender Change Requests and Not Yet Advertised 0

Tenders that are cancelled 13

Contracts Active Contracts 15

Contracts where practical completion has been registered 6

Expressions of Interest 0

Expressions of Interest Advertised and Not Closed 0

Expressions of Interest that are cancelled 0

Tenders that are outside tender validity period 0

27. Tenders and formal quotations issued

A total of xxxx tenders and quotations was advertised during the 2013/2014 financial year.

Description Number

Bids advertised 41

Bid opened 41

Bid submissions received 117

Contracts awarded 12

Bids cancelled 12

Appeals received 3

Appeals finalised 1

Appeals dismissed/ revoke 1

Appeals upheld 0

Appeals pending 2

The appeals statistic indicates that the degree of accuracy are improving in the general SCM output and a realistic level of public satisfaction in the bidding procedures.


28. Irregular expenditure Attached find Annexure E of possible Irregular expenditure that must be investigated in terms of the MFMA (Section 32).

29. Challenges in implementing the SCM Policy The municipality struggles to ensure compliance with SCM Regulations in ensuring that state employees is identified prior to award of bid, which makes the municipality susceptible to fraudulent declarations and transactions with state employees is ensued. Appeals are lodge without merit.

30. Recommendations for improvement and implementation

That the following recommendations be implemented in 2014/2015 to address the outstanding issues as addressed in the report and hat progress in terms of implementation of these issues be reported as part of the quarterly reports to the Mayor and the SDBIP performance evaluation:

29.1. Training of SCM Bid committee members 29.2. A risk analysis and review of the risk appetite of the municipality regarding SCM must be

undertaken during the 2014/2015 financial year and will due cognisance be taken to the risk management model that was recommended.

29.3. Finalise and formalise the SCM Delegations that are not a part of the SCM policy. 29.4. Council has adopted a Petty cash Policy and Blacklisting listing policy. (29 May 2014)

29.5. Prepare a Draft a Gift Policy for councillors and staff members for adoption by Council 29.6. Prepare a Procurement Plan for 2014/2015. 29.7. Prepare a Draft Contract Management Policy for adoption by Council. 29.8. Prepare a Draft Asset Disposal Policy for adoption by Council. 29.9. Emphasises will be placed on the validity and integretiy of supplier data by the SCM unit and a

continous data validation excercises will be undertaken with suppliers to ensure validity of data. 29.10. We need to establish a website portal where quotations are advertised for between R 0 – R

30,000-00 where all suppliers registered on the supplier database are able to respond to procurement advertisements. Turnaround time for procurement between R 0-R 30,000-00 must be three (3) working days

29.11. SCM deviations approved in terms of regulation 36 will be reported on a monthly basis to

Finance portfolio committee and executive committee for Council adoption.

29.12. Contract performance must be reported to council on a regular basis in terms of section 116 by user department or project manager on the project.


31. Register of Declarations in terms of Regulation 48(2)(2) and 48(3)(a)(b) Register of Declarations of Private or Business Interest or of close Family members of the officials involved in Procurement awards and contracts Regulation 48(2)(2) and 48(3)(a)(b)

Supplier Official Close Family Description

of Goods

and

Services

Bid

Number

Amount Details

No declarations have been received from officials involved in the procurement processes.

32. Conclusion

The implementation of Supply Chain Management in the municipality has become an accepted reality in the and the Supply Chain Management (SCM) unit is continuously improving its procedures in order to ensure that Council receives value for money in terms of demand and acquisition management. Projects and procurement is being planned with cognisance of the requirements of the Supply Chain Management legislative framework. However more work should be done in order to improve strategic sourcing to enhance the value the municipality can derive in improved sourcing and supplier development. The current shortcomings in the implementation of the Supply Chain Management Policy are constantly addressed. Council’s SCM policy fully complies with the requirements of the SCM Regulations, and is ideally set to ensure that procurement processes of the municipality is fair, equitable, transparent, competitive and cost effective and comply with the prescriptions of the Municipal Finance Management Act.

I trust that you find the above in order.

B S LENKOE ACTING MUNICIPAL MANAGER

28 July 2014

annual implementation report · supply chain management annual implementation report - 2013/2014...

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