Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)RegulationsMunicipal Supply Chain Management Regulations, 2005Chapter 2: Framework for Supply Chain Management PoliciesPart 2: Acquisition management32. Procurement of goods and services under contracts secured by other organs of state |
| (1) | A supply chain management policy may allow the accounting officer to procure goods or services for the municipality or municipal entity under a contract secured by another organ of state, but only if— |
| (a) | the contract has been secured by that other organ of state by means of a competitive bidding process applicable to that organ of state; |
| (b) | the municipality or entity has no reason to believe that such contract was not validly procured; |
| (c) | there are demonstrable discounts or benefits for the municipality or entity to do so; and |
| (d) | that other organ of state and the provider have consented to such procurement in writing. |
| (2) | Subregulation (1)(c) and (d) do not apply if— |
| (a) | a municipal entity procures goods or services through a contract secured by its parent municipality; or |
| (b) | a municipality procures goods or services through a contract secured by a municipal entity of which it is the parent municipality. |