Strategic supply-chain management by Matatiele Municipality
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1 Chapter 1 Introduction 1.1 Background and Purpose of the Study The increasing democratisation of South Africa from 1994 onwards saw far-reaching changes being implemented in order to change society and to eradicate the wrongs of the past. Legislation, which was introduced to give effect to these changes, simultaneously has served as a key driver for modernising governance in South Africa. The Constitution of the Republic of South Africa, 1996 (Act 108 of 1996) (hereafter referred to as the Constitution) sets out the objectives of local government. 1 These objectives include ensuring the sustainable provision of services to communities and the promotion of economic development. The duty of a municipality to facilitate economic development is reiterated in the description of the developmental duties of a municipality. 2 Chapter 13 of the Constitution deals with general financial matters, including procurement. 3 When a local authority enters into contracts in order to secure goods or services, it must do so in accordance with a system that is fair, equitable, transparent, competitive and cost-effective. Local authorities may also implement a procurement policy providing for categories of preference in the allocation of contracts and the protection or advancement of persons previously disadvantaged by unfair discrimination. However, national legislation must prescribe a framework within which such a policy may be implemented. Furthermore, national legislation 4 must prescribe measures for ensuring both transparency and expenditure control in local government by introducing, amongst others, uniform treasury norms and standards. To give effect to Section 216 of the Constitution, the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) (hereafter referred to as the MFMA) took effect on 1 July 2004, with certain exceptions. In the foreword to the Act, the Minister of Finance 1 Section 152. 2 Section 153. 3 Section 217. 4 Section 216.
Strategic supply-chain management by Matatiele Municipality
