SCM Policies
The City of Matlosana is committed to maintaining transparent, fair, and efficient procurement processes. Our Supply Chain Management policies ensure compliance with national regulations and promote good governance. These policies guide all procurement activities within the municipality.
SCM Policy Framework
Our comprehensive Supply Chain Management Policy framework governs all procurement activities, sets out procedures for tenders, quotations, and contracting to ensure transparency and value for money.
Download PDFPreferential Procurement Policy
This policy implements the Preferential Procurement Policy Framework Act (PPPFA) and promotes economic development through targeted procurement from SMMEs, local suppliers, and previously disadvantaged groups.
Download PDFEthics & Code of Conduct
Our ethics policy outlines the standards of professional behavior expected from all parties involved in supply chain management, and establishes measures to prevent fraud and corruption.
Download PDFContract Management Policy
This policy provides guidelines for managing, monitoring, and evaluating supplier contracts to ensure compliance with agreed terms and conditions and optimize service delivery.
Download PDFLocal Supplier Development
Our policy for supporting and developing local suppliers, aimed at stimulating local economic growth, creating job opportunities, and building sustainable local business capacity.
Download PDFInfrastructure Procurement Policy
Specialized policy for infrastructure development procurement, aligned with the Infrastructure Development Management System (IDMS) and other applicable national frameworks.
Download PDFKey SCM Regulations
Municipal Finance Management Act (MFMA)
The Municipal Finance Management Act (Act 56 of 2003) establishes the legal framework for financial management and transparency in local government. Section 112 specifically addresses supply chain management requirements for municipalities.
Key provisions include:
- Requirements for fair, equitable, transparent, competitive and cost-effective SCM systems
- Provisions for combating fraud, corruption, favoritism, and unfair practices
- Framework for delegation of SCM powers and duties
- Guidance on separation of duties to minimize risk
Municipal SCM Regulations
The Municipal Supply Chain Management Regulations (2005) provide detailed implementation guidance for municipalities to establish and maintain appropriate SCM systems.
The regulations cover:
- Supply chain management policy requirements
- Framework for the SCM system
- Demand management
- Acquisition management including threshold values for different procurement methods
- Logistics, disposal, risk, and performance management
- Ethical standards and conflict of interest provisions
Preferential Procurement Policy Framework Act (PPPFA)
The PPPFA (Act 5 of 2000) and its Regulations establish the framework for implementing preferential procurement to address historical imbalances and promote broader economic participation.
Key elements include:
- The 80/20 and 90/10 preference point systems for tender evaluation
- B-BBEE scoring and verification requirements
- Pre-qualification criteria to advance designated groups
- Subcontracting requirements for contracts above R30 million
- Local production and content requirements
Broad-Based Black Economic Empowerment Act
The B-BBEE Act (Act 53 of 2003) and the Codes of Good Practice provide the framework for measuring and promoting economic transformation and participation of black South Africans in the economy.
In procurement, this includes:
- B-BBEE verification and certification requirements
- Sectoral transformation charters
- Measurement of ownership, management control, skills development, enterprise development, and socio-economic development
- Recognition for supporting black-owned enterprises
Frequently Asked Questions
The City of Matlosana applies the following thresholds in line with National Treasury regulations:
- R0 - R2,000: Petty cash purchases
- R2,001 - R30,000: Written quotations (minimum three)
- R30,001 - R200,000: Formal written price quotations
- Above R200,000: Competitive bidding process
These thresholds are subject to change based on updated National Treasury guidelines.
Tenders are evaluated through a multi-stage process:
- Compliance screening: Checking for submission of all required documents
- Functionality assessment: Evaluation against predetermined technical criteria
- Price and preference evaluation: Using either the 80/20 preference point system (for contracts up to R50 million) or the 90/10 system (for contracts above R50 million)
- Risk assessment: Evaluation of potential risks associated with the award
- Recommendation and approval: Final review by the Bid Adjudication Committee
The City of Matlosana is committed to Local Economic Development and implements various mechanisms to support local suppliers while remaining compliant with national procurement regulations:
- Targeted procurement opportunities for local SMMEs
- Supplier development and capacity building programs
- Subcontracting requirements for larger contracts
- Regular supplier engagement sessions and workshops
Local preference is implemented within the framework of the PPPFA and cannot override the requirements for fair and competitive procurement processes.
The City of Matlosana has strict policies to manage conflicts of interest:
- All officials involved in SCM processes must disclose any potential conflicts
- Municipal employees and their close family members are prohibited from doing business with the municipality
- Bid committee members must declare interests and recuse themselves when necessary
- Suppliers must disclose relationships with municipal officials or other state employees
- Regular verification is conducted against the database of restricted suppliers
- Violations are subject to disciplinary action and potential contract termination
The municipality encourages reporting of any suspected irregularities through these channels:
- Anonymous Fraud Hotline: 0800 701 701
- Email: fraud@matlosana.gov.za
- Written submission to the Municipal Manager's Office
- National Treasury's Central Supplier Database complaints function
All reports are treated confidentially and protected under the Protected Disclosures Act.
Contact SCM Department
Office Location
SCM Department, Municipal Offices
Civic Centre, Bram Fischer Street
Klerksdorp, 2570
Phone Numbers
Main Office: 018 487 8025
Tender Support: 018 487 8028
Supplier Registration: 018 487 8030
Email Addresses
General Inquiries: scm@matlosana.gov.za
Tender Submissions: tenders@matlosana.gov.za
Supplier Database: suppliers@matlosana.gov.za