New municipal laws published
Richard Mantu
5 November 2004
Finance Minister Trevor Manuel has published three new regulations in the government gazette for public comment that will see the overhaul of municipal procurement processes, while promoting empowerment and reducing corruption.
The new draft regulations are supply chain management, public-private partnership, and municipal cash management and investment.
The three regulations fall under the Municipal Finance Management Act, and are aimed at modernising systems of procuring goods and services, reducing corruption and ensuring greater transparency and accountability in the procurement processes.
The National Treasury said in a statement that the reforms would also give effect to the broad-based black economic empowerment objectives.
"It will also be possible to set up more uniform procedures between municipalities, making it easier for small businesses to bid for contracts," said the Treasury.
The new supply chain management
regulations will cover the acquisition and disposal of all goods and services by municipalities.
It requires councils to approve a transparent policy and separate the policy-making and implementation processes. It enhances the oversight role of councillors by ensuring that they will no longer participate in the bid and tender committees.
"Instead, the council must delegate supply chain management powers and duties to the municipal manager who is responsible for ensuring maximum efficiency and to prevent fraud, corruption, favouritism and unfair practices and is accountable for the implementation of the policy," said the Treasury.
The new procedures and processes require that municipal officials and potential suppliers disclose any interest they may have in acquiring goods or services.
They also prohibit offers of gifts, rewards, favours or sponsorships offered to a municipality by a supplier in cash or in-kind, and penalties will be imposed on any person
breaching the procedures.
The regulations, which also require that all tender bids be opened to the public and a register kept for public inspection, will be effective from 1 July 2005.
Comments and feedback on the draft regulations must be submitted to the National Treasury by 19 November.
Details of the regulations are available in Government Gazette 26945 or on the National Treasury website.
Source: BuaNews
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