legislative acts - mfma - scm - monetary limitations

8/13/2019 Legislative Acts - MFMA - SCM - Monetary Limitations

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SUPPLY CHAIN MANAGEMENT MONETARY LIMITATIONS

5. (1) The accounting officer may in terms of section 79 or 106 of the Act

subdelegate any supply chain management poers and duties! includingthose delegated to the accounting officer in terms of this "olicy! but anysuch subdelegation must be consistent ith subparagraph (#) of thisparagraph and paragraph $ of this "olicy.

(#) The poer to ma%e a final aard &(a) above R100 000 (VAT incl!e!"may not be sub delegated by the

accounting officer'(b) not eceeding R100 000 (VAT incl!e!"#may be sub delegated

but only to &(i) the chief financial officer' * +othma!

(ii) the community ser,ices manager! - *eptember or(iii) a bid adudication committee of hich the chief financial

officer or senior manager is a member'

1#. (1) oods and ser,ices may only be procured by ay of &(a) petty cash purchases! up to a transaction ,alue of R 1 000 (VAT

incl!e!"$(b) ritten or ,erbal /uotations for procurements of a transaction ,alue

o,er R 1 000 % &o R10 000 (VAT incl!e!"$ (c) formal ritten price /uotations for procurements of a transaction

,alue o,er R10 000 % &o R'00 000 VAT incl!e!"$and

(d) a competiti,e bidding process for&(i) procurements abo,e a transaction ,alue of R'00 000 (VAT

incl!e!"$and(ii) the procurement of long term contracts.

(#) The accounting officer may! in riting(a) loer! but not increase! the different threshold ,alues specified in

subparagraph (1)' or(b) direct that &

(i) ritten or ,erbal /uotations be obtained for any specificprocurement of a transaction ,alue loer than R1 000$

(ii) formal ritten price /uotations be obtained for any specificprocurement of a transaction ,alue loer than R10 000' or(iii) a competiti,e bidding process be folloed for any specific

procurement of a transaction ,alue loer than R'00 000

P)oce!)e* +o) %)oc)in, ,oo!* o) *e)vice* &-)o,- .)i&&en o) ve)bal /o&a&ion*an! +o)al .)i&&en %)ice /o&a&ion*


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1 The procedure for the procurement of goods or ser,ices through ritten or,erbal /uotations or formal ritten price /uotations! is as follos(a) hen using the list of accredited prospecti,e pro,iders the accounting

officer must promote ongoing competition amongst pro,iders by in,iting

pro,iders to submit /uotations on a rotation basis'(b) all re/uirements in ecess of R20 000 (VAT incl!e!" that are to beprocured by means of formal ritten price /uotations must! in addition tothe re/uirements of paragraph 17! be ad,ertised for at least se,en dayson the ebsite and an official notice board of the 2unicipality of "34-

A+-3T'(c) offers recei,ed must be e,aluated on a comparati,e basis ta%ing into

account unconditional discounts'(d) the accounting officer or chief financial officer must on a monthly basis be

notified in riting of all ritten or ,erbal /uotations and formal ritten price/uotations accepted by an official acting in terms of a subdelegation'

(e" offers belo R10 000 (VAT incl!e!" must be aarded based oncompliance to specifications and conditions of contract! ability andcapability to deli,er the goods and ser,ices and loest price'

(b) acceptable offers! hich are subect to the preference points system("""8A and associated regulations)! must be aarded to the bidder hoscored the highest points'

(c) council to insert re/uirements for proper record %eeping.

Co%e&i&ive bi!*

19. (1) oods or ser,ices abo,e a transaction ,alue of R'00 000 (VAT incl!e!"and long term contracts may only be procured through a competiti,ebidding process! subect to paragraph 11(#) of this "olicy.

(#) o re/uirement for goods or ser,ices abo,e an estimated transaction,alue of R'00 000 (VAT incl!e!"#may deliberately be split into parts oritems of lesser ,alue merely for the sa%e of procuring the goods orser,ices otherise than through a competiti,e bidding process.

3i! !ocen&a&ion +o) co%e&i&ive bi!*

#1. The criteria to hich bid documentation for a competiti,e bidding process mustcomply! must &(a) ta%e into account &

(i) the general conditions of contract and any special conditions ofcontract! if specified'

(ii) any Treasury guidelines on bid documentation' and


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(iii) the re/uirements of the onstruction 4ndustry e,elopment +oard!in the case of a bid relating to construction! upgrading orrefurbishment of buildings or infrastructure'

(b) include the preference points system to be used ! goals as contemplatedin the "referential "rocurement 3egulations and e,aluation and

adudication criteria! including any criteria re/uired by other applicablelegislation'(c) compel bidders to declare any conflict of interest they may ha,e in the

transaction for hich the bid is submitted'(d) if the ,alue of the transaction is epected to eceed R1 illion (VAT

incl!e!"#re/uire bidders to furnish& (i) if the bidder is re/uired by la to prepare annual financial

statements for auditing! their audited annual financial statements &(aa) for the past three years' or(bb) since their establishment if established during the last three

years'

(ii) a certificate signed by the bidder certifying that the bidder has noundisputed commitments for municipal ser,ices toards amunicipality or other ser,ice pro,ider in respect of hich payment iso,erdue for more than :0 days'

(iii) particulars of any contracts aarded to the bidder by an organ ofstate during the past fi,e years! including particulars of any materialnoncompliance or dispute concerning the eecution of suchcontract'

(i,) a statement indicating hether any portion of the goods or ser,icesare epected to be sourced from outside the 3epublic! and! if so!hat portion and hether any portion of payment from themunicipality or municipal entity is epected to be transferred out ofthe 3epublic' and

(e) stipulate that disputes must be settled by means of mutual consultation!mediation (ith or ithout legal representation)! or! hen unsuccessful! ina *outh African court of la.

(f) insert any other criteria determined by the council.

A%%oin&en& o+ con*l&an&*

:5. (1) The accounting officer may procure consulting ser,ices pro,ided that anyTreasury guidelines in respect of consulting ser,ices are ta%en intoaccount hen such procurements are made.

(#) onsultancy ser,ices must be procured through competiti,e bids if(a) the ,alue of the contract eceeds R'00 000 (VAT incl!e!"$or(b) the duration period of the contract eceeds one year.


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(:) 4n addition to any re/uirements prescribed by this policy for competiti,ebids! bidders must furnish particulars of &(a) all consultancy ser,ices pro,ided to an organ of state in the last fi,e

years' and(b) any similar consultancy ser,ices pro,ided to an organ of state in

the last fi,e years.

($) The accounting officer must ensure that copyright in any documentproduced! and the patent rights or onership in any plant! machinery!thing! system or process designed or de,ised! by a consultant in thecourse of the consultancy ser,ice is ,ested in the 2unicipality of "34-

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P)o-ibi&ion on a.a)!* &o %e)*on* .-o*e &a4 a&&e)* a)e no& in o)!e)

$:. (1) o aard abo,e R15 000may be made in terms of this "olicy to a personhose ta matters ha,e not been declared by the *outh African 3e,enue*er,ice to be in order.

(#) +efore ma%ing an aard to a person the accounting officer must firstchec% ith *A3* hether that person;s ta matters are in order.

(:) 4f *A3* does not respond ithin 7 days such person;s ta matters may forpurposes of subparagraph (1) be presumed to be in order.

The accounting officer must ensure that the notes to the annual financial statementsdisclose particulars of any aard of more than R'000to a person ho is a spouse! childor parent of a person in the ser,ice of the state! or has been in the ser,ice of the state inthe pre,ious tel,e months! including &

(a) the name of that person'(b) the capacity in hich that person is in the ser,ice of the state' and(c) the amount of the aard.

legislative acts - mfma - scm - monetary limitations

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