On 24 January 2024, Council approved amendments to the Hessequa Municipality Supply Chain Management Policy. Principles and Operational System (SCM Policy). These amendments were necessitated by the amendments National Treasury issued on the Municipal Supply Chain Management Regulations, 2005, effective 14 December 2023 and the clarification from National Treasury on the implementation of the 80/20 Preference Points system as regulated by the Preferential Procurement Regulations, 2022.
In summary the amendments and the clarification impact the procurement processes of Hessequa Municipality as follows:
- Goods, services, and works may only be procured by means of petty cash, formal written price quotations and competitive bids.
- Procurement by means of verbal or written price quotations are prohibited.
- The threshold for formal written price quotations have been adjusted from R200,000 (VAT Incl.) to R300,000 (VAT Incl.), which means that formal tenders or competitive bids and long-term contracts should be implemented when the purchase is valued at more than R300,000 (VAT Incl.).
- Requests for formal written price quotations above R30 000 (VAT Incl.) to R300 000 (VAT Incl.) must be advertised for 7 days with all Municipal Bidding Documents as required.
- Requests for formal written price quotations below R30 000 (VAT Incl.) to be advertised for 48 hours as per SCM policy.
- The 80/20 Preferential point system is applicable to the procurement of goods, services and works below R30 000 (VAT Incl.) excluding petty cash purchases.
Should you have any enquiries regarding these amendments to the SCM Policy and its implications please contact Mr John-Ashley Thyse at Tel: 028 713 8086 or email: john-ashley@hessequa.gov.za or alternatively Tel: 028 713 8000 or info@hessequa.gov.za
A.S.A. De Klerk
Municipal Manager
