FINANCE DIRECTORATE
SHAREHOLDING MANAGEMENT DEPARTMENT
MUNICIPAL ENTITY
QUARTERLY NEWSLETTER
Analyst
2012/2013 Quarter 3: January 2013 – March 2013, ISSUE NO. 24
As parent municipality to the municipal entities we aim to keep our municipal entity boards of directors
and staff abreast of all current news, legislation and policies directly affecting the municipal entities.
This will enable directors to be continuously informed as well as ensuring that we meet the legislative
requirement as parent municipality to ensure that both the municipality and the municipal entity
comply with the Municipal Systems Act, the Local Government: Municipal Finance Management Act and
any other applicable legislation.
Contents
The newsletter’s intend to convey information relating to the Local Government: Municipal Finance
Management Act, Local Government: Systems Act, Companies Act, Corporate Governance and any
information relevant to municipal entities.
THE LOCAL GOVERNMENT LEGISLATION:
THE MUNICIPAL FINANCE MANAGEMENT ACT
Supply Chain Management
The following are some Supply Chain Management reminders:
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If a tender other than the one recommended in the normal course of implementing the supply
chain management policy is approved, the accounting officer must, in writing notify the
Auditor-General, the Provincial Treasury, the National Treasury and the parent municipality
(See Section 114 of the MFMA)
If a contract procured through the SCM Policy is amended, the proposed amendment must be
tabled in the council of the parent municipality and the local community must be given notice of
the intention to amend and be invited to comment on the amendment. (Section 116(3) of the
MFMA)
In the application of the 80/20 preference point system as stipulated in the tender documents,
if all tenders received exceed the estimated Rand value of R1 000 000, the tender invitation
must be cancelled. If one or more of the acceptable tenders received are within the prescribed
threshold of R1 000 000, all tenders received must be evaluated on the 80/20 preference point
system. (Regulation 8 of the Preferential Procurement Regulations)
In the application of the 90/10 preference point system as stipulated in the tender documents,
if all tenders received are equal to, or below R1 000 000, the tender must be cancelled. If one
or more of the acceptable tenders received are above the prescribed threshold of R1 000 000,
all tenders received must be evaluated on the 90/10 preference point system. An organ of state
which has cancelled a tender invitation must re-invite tenders and must, in the tender
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documents, stipulate the correct preference point system to be applied.(Regulation 8 of the
Preferential Procurement Regulations)
GENERAL:
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT: South Africa Report 2013
The ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT OECD is a unique forum
where governments work together to address the economic, social and environmental challenges of
globalisation. The OECD is also at the forefront of efforts to understand and to help governments
respond to new developments and concerns, such as corporate governance, the information economy
and the challenges of an ageing population. The Organisation provides a setting where governments
can compare policy experiences, seek answers to common problems, identify good practice and work
to co-ordinate domestic and international policies. This report analyses South Africa.
http://www.treasury.gov.za/publications/other/OECD%20Economic%20Surveys%20South%20Africa%
202013.pdf
PWC’s 16th Annual Global CEO Survey
CEOs are confident about global economic growth and their companies’ prospects for revenue growth,
while also acknowledging the many challenges and uncertainties they face.
http://www.pwc.co.za/en/publications/ceo-survey.jhtml
Non-Executive Directors: Practices and Fees Trends Report - South Africa
2013 - PWC
This publication looks at the risk landscape facing non-executive directors and the potential personal
liability they may face, as well as investigates any mitigating steps that could be considered. Their
duties and responsibilities continue to be broadened with the on-going introduction of new and
proposed legislation around the world.
http://www.pwc.co.za/en/publications/non-executive-directors-report.jhtml
Tech Trends 2013: Elements of postdigital - Deloitte
Deloitte Consulting LLP’s annual Tech Trends report examines the ever-evolving landscape of
technology put to practical business use. The 2013 edition revisits 10 actionable trends likely to impact
business with measurable value over the next 18 to 24 months
http://www.deloitte.com/view/en_GX/global/services/consulting/e74bda89a5f3d310VgnVCM30000034
56f70aRCRD.htm?id=gx:th:lk:TT13
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Africa on the move: quest for sustainable growth – Ernst and Young
In Africa, a broad range of factors have created favourable conditions for economic transformation,
which could see rapid growth become sustainable and inclusive in the future.
http://www.ey.com/GL/en/Issues/Driving-growth/Africa-on-the-move--quest-for-sustainable-growth
Please contact Louise Muller (021 4003940) or Richard Wootton (021 4002701) if you have any queries
in respect of this newsletter.
Although every effort is made to check the accuracy and quality of the information supplied, The City
cannot be held responsible for any errors that may arise.
Copyright: City of Cape Town 2012. All rights reserved. No part of this newsletter may be reproduced or transmitted in any form without
written permission from the City of Cape Town, Finance Directorate, Shareholding Management Department.
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