n Local Government Bulletin - From the courts : who excludes bidders from future contracts?
|Article Title||From the courts : who excludes bidders from future contracts?|
|© Publisher:||Dullah Omar Institute|
|Journal||Local Government Bulletin|
|Publication Date||Nov 2008|
|Pages||22 - 25|
The duty to create and maintain a sound supply chain management (SCM) system is an essential component of the good governance of any municipality. While the Municipal Finance Management Act (MFMA) clearly outlines the type of relationship that should exist between the municipality and those bidding to supply services, it is difficult at times to determine how acts of bribery, for example, should be dealt with and the appropriate procedures to be followed when these matters arise. In the case of Entsha Henra BK v Hessequa Munisipaliteit, the Cape High Court had to review the decision of the executive mayoral committee of the Hessequa Municipality to exclude a bidder from future contractual opportunities. More importantly, it had to evaluate whether this responsibility fell within the powers of the mayoral committee or the municipal manager.
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