Dear Munsoft Client,

We kindly wish to highlight the importance adhering to the complete supply chain process, and complying by making use of the Central Supplier Database (CSD) in the SCM module of the system, effective since 1 April 2016, referring to MFMA Circular No. 81 Municipal Finance Management Act No. 56 of 2003, and not deviating from these processes and standing the risk of wasteful and unauthorised expenditure.

Supply Chain Management is fundamental to the success of local government in terms of good governance and the manner in which public funds are utilized.

It is crucial for municipal SCM officials and other roll players to understand the governing policies and regulations provided by the National Treasury such as but not limited to:

• Municipal Systems Act 32 of 2000.

• Preferential Procurement Policy Framework Act 5 of 2000.

• Preferential Procurement Regulations 2011.

• Municipal Finance Management Act No. 56 of 2003

By just referencing to the MFMA Circulars published the last two years one can’t help but realizing the criticality of this aspect within local government, the last being MFMA Circular No 110 - “Unfair criteria used in bidding processes relating to infrastructure procurement and the charging of excessive fees for tender documents – 31 May 2021”.

Taking this into account we wish to focus on SCM and its accompanied legislative processes for the next couple of months, thus this Munsoft Matters precedes an invitation to a virtual SCM workshop held the latter part of this month.

Kind Regards,


More Munsoft Matters articles