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Overview

Draft Supply Chain Management Regulations made in terms of the Financial Management of Parliament Act, 2009 (‘FMPA’) Presentation to the Standing and Select Committees on Finance July 2013. Overview. Background Content Comments received Questions. Background.

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Overview

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  1. Draft Supply Chain Management Regulations made in terms of the Financial Management of Parliament Act, 2009 (‘FMPA’) Presentation to the Standing and Select Committees on Finance July 2013

  2. Overview • Background • Content • Comments received • Questions

  3. Background Procurement of goods and services; and disposal and letting of assets, by Parliament must comply with section 217 of the Constitution, Chapter 6 (read with Schedule 3) of the FMPA, Preferential Procurement Policy Framework Act, Broad-Based Black Economic Empowerment Act. Draft Supply Chain Management (‘SCM’) Regulations were prescribed by the Executive Authority and published for public comment in the Government Gazette (No. 36130) on 4 February 2013 as required by section 65(5) of the FMPA . These regulations may only come into effect after approval by Parliament (section 65(6)).

  4. Background (cont.) The Speaker and the Chairperson referred the draft SCM regulations to (ATC, 9 May 2013): • the Interim Joint Committee on the Scrutiny of Delegated Legislation; and • the Standing and Select Committees on Finance; for consideration and report in terms of their respective mandates. In terms of the respective mandates, the finance committees, conferring, must facilitate public involvement and consider and report on whether the draft Regulations should be amended. The Interim Joint Committee must consider and report on whether the NA and NCOP may approve the draft regulations as required by the FMPA.

  5. Background (cont.) • Interim Joint Committee’s mandate includes scrutinising regulations for approval in accordance with criteria whether such regulations impose money bills provisions; comply with procedural aspects pertaining to delegated legislation; impinge on the jurisdiction of the courts; use unauthorised retrospective operation; conform with the objects of the parent Act; make unusual use of powers conferred by the parent Act; are properly drafted; trespass unconstitutionally on personal rights and liberties; and, constitute substantive legislation. • The Interim Joint Committee met on 5 June 2013 to consider the draft Regulations. It resolved that: • except for the issue of drafting style, the draft Regulations comply with the scrutiny criteria , including conformity with the objects of the FMPA; • the style of the draft Regulations should conform to the legislative style usually used for regulations (Legal Services has prepared a draft accordingly); and • to wait for the process in the Standing and Select Committees to be completed before giving their final approval of the draft Regulations.

  6. Content

  7. Content (cont.) • The Regulations cover the following information: • Guidelines for management of demand, acquisition, logistics, disposal and risk management • Procurement process for petty cash, written quotations, formal written price quotations, competitive bidding, participation in transversal contracts of other organs of state, unsolicited offers, emergencies and exceptional circumstances. • Procedures for bid committees (bid specification, bid evaluation, bid adjudication) – recommend acquisition to Accounting Officer – in light of delegation of authority (section 10 of the FMPA) • Governance issues consist of compulsory disclosure of conflict of interest of prospective suppliers, barring persons from participation, combating abuse of SCM system, contract management, logistics management (internal control) and dispute resolution procedures • Regular review of SCM performance

  8. Comments received • Numerous comments were received from parliamentary officials. Please see hand out. • Comments concern clarifying the meaning of the regulations. Some of these are rejected for reasons of non-compliance with the requirements of Chapter 6 of the FMPA and Schedule 3. • The only key content change relates to the inclusion of verbal quotations relating to spend below R10 000 (please refer to item no. 53 in the handout.) • Those comments that are accepted will be included in the further draft and once approved by the Committees and Houses, will be submitted for scrutiny to the Interim Joint Committee. • THE END • QUESTIONS

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