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 4: Other Matters46. Ethical standards |
| (1) | A supply chain management policy must establish a code of ethical standards complying with subregulation (2) for officials and other role players in the supply chain management system in order to promote— |
| (a) | mutual trust and respect; and |
| (b) | an environment where business can be conducted with integrity and in a fair and reasonable manner. |
| (2) | A municipal code of ethical standards must stipulate that an official or other role player involved in the implementation of the supply chain management policy of the municipality or municipal entity— |
| (a) | must treat all providers and potential providers equitably; |
| (b) | may not use his or her position for private gain or to improperly benefit another person; |
| (c) | may not accept any reward, gift, favour, hospitality or other benefit directly or indirectly, including to any close family member, partner or associate of that person; |
| (d) | notwithstanding subregulation (2) (c), must declare to the accounting officer details of any reward, gift, favour, hospitality or other benefit promised, offered or granted to that person or to any close family member, partner or associate of that person; |
| (e) | must declare to the accounting officer details of any private or business interest which that person, or any close family member, partner or associate, may have in any proposed procurement or disposal process of, or in any award of a contract by, the municipality or municipal entity; |
| (f) | must immediately withdraw from participating in any manner whatsoever in a procurement or disposal process or in the award of a contract in which that person, or any close family member, partner or associate, has any private or business interest; |
| (g) | must be scrupulous in his or her use of property belonging to the municipality or municipal entity; |
| (h) | must assist the accounting officer in combating fraud, corruption, favouritism and unfair and irregular practices in the supply chain management system; and |
| (i) | must report to the accounting officer any alleged irregular conduct in the supply chain management system which that person may become aware of, including— |
| (i) | any alleged fraud, corruption, favouritism or unfair conduct; |
| (ii) | any alleged contravention of regulation 47(1); or |
| (iii) | any alleged breach of the code of ethical standards. |
| (3) | A supply chain management policy must— |
| (a) | determine that all declarations in terms of subregulation (2)(d) and (e) must be recorded in a register which the accounting officer must keep for this purpose; |
| (b) | determine that all declarations by the accounting officer must be made to the mayor of the municipality or the board of directors of the municipal entity who must ensure that such declarations are recorded in the register; and |
| (c) | contain measures to ensure that appropriate action is taken against any official or other role player who commits a breach of the code of ethical standards. |
| (4) | A supply chain management policy must take into account the National Treasury’s code of conduct for supply chain management practitioners and other role players involved in supply chain management. |
| (5) | A municipality or municipal entity may adopt the National Treasury‘s code of conduct for supply chain management practitioners and other role players involved in supply chain management. When adopted, such code of conduct becomes binding on all officials and other role players involved in the implementation of the supply chain management policy of the municipality or municipal entity. |
| (6) | Subregulation (2)(c) does not apply to gifts less than R350 in value. |