A Guide for Councillors

The Role of Councillors in Municipal Finance Management

Part 5

Supply chain management: Involves the buying of goods and services.

The supply chain management policy must be clear and the municipality must follow it carefully. If goods and services are of poor quality, overpriced or not available when needed, service delivery will suffer.

IF THE POLICY IS PUBLICISED, IT CAN BUILD PUBLIC CONFIDENCE IN LOCAL GOVERNMENT.

A SUPPLY CHAIN MANAGEMENT POLICY PROMOTES OPENNESS AND TRANSPARENCY.

The municipal manager is responsible for implementing the policy and reporting on it to the council. A supply chain management policy must: be fair and transparent focus on integrity and ef fi ciency comply with the relevant BEE framework obtain the best value for money demonstrate a prudent use of resources to the public ensure that procurement is not for the personal bene fi t of public of fi ce-bearers, of fi cials or their friends. • • • • • •

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Understanding the Municipal Finance Management Act