CCMA ANNUAL REPORT

Commission for Conciliation, Mediation and Arbitration Annual Report 2022/23

5.3. CAPACITY CONSTRAINTS AND

Act, 1999 (Act No. 1 of 1999) (PFMA), the Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000) (PPPFA) and Treasury Regulations. The systems and procedures focus on managing the inter-dependent activities of demand, acquisition, inventory and contract administration. The approved 2022/23 Procurement Plan was partially executed. Projects that could not be fully executed were rolled over to the 2023/24 financial year as most were non-responsive bids. Quarterly procurement progress reports were submitted to the National Treasury for the tender e-portal update as required by legislation. National Treasury issued PFMA (1999) instruction Note No. 3 of 2021/22 titled: Enhancing Compliance, Transparency and Accountability in SCM on 31 March 2022 which became effective from 1 April 2022. The provisions of this instruction were embedded in the SCM policy of the organisation. Furthermore, the Minister of Finance gazetted the revised Preferential Procurement Regulations of 2022 under the Preferential Procurement Policy Framework of the PPPFA (2000) on 4 November 2022, and these Regulations took effect on 16 January 2023. The purpose of the 2022 Regulations is to comply with Section 217 of the Constitution on procurement of goods and services by the organs of state, to comply with Section 2 of the PPPFA (2000), and the Constitutional Court judgement of February 2022, on the 2017 Regulations. The new 2022 Regulations require organs of state in the development of their procurement policies to also consider specific programmes stipulated in the Reconstruction and Development Programme as published in Government Gazette No. 16085 dated 23 November 1994 and provides for points to be awarded for specific goals. The revised policy aligned with the 2022 Regulations was approved by the Governing Body. 5.8. ALL CONCLUDED UNSOLICITED BID PROPOSALS FOR THE YEAR UNDER REVIEW The CCMA’s SCM Policy discourages consideration of unsolicited bids, and none were received and considered during the year under review.

CHALLENGES FACING THE PUBLIC ENTITY

During the 2022/23 financial year, procurement activities were halted. The impact was an inability to implement items on procurement plans during the financial year. The Preferential Procurement Regulations of 2022 (PPR2022) became effective from 16 January 2023, and required that all organs of state include specific goals in their bids and preferential procurement policies aligned with the Broad-Based Black Economic Empowerment (B-BBEE) Act and the Reconstruction and Development Programme Goals of 1994. In response to the requirement, the CCMA updated the Supply Chain Management (SCM) policy to incorporate these specific goals. 5.4. DISCONTINUED KEY ACTIVITIES/ ACTIVITIES TO BE DISCONTINUED The CCMA did not have any discontinued key activities during the 2022/23 financial year. 5.5. NEW OR PROPOSED KEY ACTIVITIES The CCMA did not introduce any new key activities during the 2022/23 financial year. 5.6. REQUESTS FOR ROLL-OVER OF FUNDS Subject to permission being granted by the National Treasury, an amount of R 36.1 million of the R 140.6 million cash and cash equivalent balance will be requested for the rollover and be utilised in the 2023/24 financial year to fund the reported short-term liabilities and commitments as recorded at 31 March 2023. 5.7. SUPPLY CHAIN MANAGEMENT The Supply Chain Management (SCM) of the CCMA is centralised at the Head Office and provides strategic support to the organisation in the acquisition of goods, works and services. The SCM has developed systems and procedures to ensure the procurement process is aligned with the requirements of Section 217 of the Constitution. Furthermore, the SCM function is governed by the provisions of the Public Finance Management

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