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Supply Chain Management Regulations

Some may argue that local government is over-regulated, but the intent is clear: protect public funds and ensure service delivery.

Regulations are one thing but having qualified and ethical people to interpret and adhere to the ‘rules’ is everything.

Maurice Markus, Senior Manager: Supply Chain Management, outlines the main regulations which drive him and his Weskus team.

Constitution of the Republic of South Africa (1996).
Section 217 requires that all government procurement systems must be fair, equitable, transparent, competitive, and cost-effective. It also allows government to implement preferential procurement processes to address past inequalities.

Municipal Finance Management Act (MFMA), Act 56 of 2003.
The MFMA regulates financial management and drives the establishment of effective Supply Chain Management systems. It also stresses the need for accounting officers to prevent irregular expenditure, fraud, and corruption.

Municipal Supply Chain Management Regulations (2005).
These regulations provide detailed rules for municipal procurement including tender procedures, bid committees, procurement thresholds, and ethical conduct.

Preferential Procurement Policy Framework Act (PPPFA), Act 5 of 2000.
This Act provides a preference point system to evaluate tenders which furthers economic transformation.

Municipal Systems Act, Act 32 of 2000.
This Act regulates municipal governance and includes a code of conduct for councillors and officials, preventing political interference in procurement processes.

Prevention and Combating of Corrupt Activities Act (PRECCA), Act 12 of 2004.
This Act criminalises corruption, bribery and abuse of power. Public officials must report corrupt activities, failing which they can face fines or imprisonment.

Public Audit Act, Act 25 of 2004.
This Act gives the Auditor-General authority to audit municipalities and identify any irregular expenditure or procurement violations.

Weskus is proud of its track record of 15 consecutive clean audits from the Auditor-General. Maurice believes that the regulations leave little scope for corruption, mismanagement, wasteful expenditure, political interference, or failure to deliver. However, he points out that service delivery requires committed and skilled managers and officials who operate in an environment of effective, practised governance and ethical leadership.