n Local Government Bulletin - Checks and balances : service delivery by external providers




The delivery of municipal services by external providers is strictly regulated. Not only do the general constitutional requirements for procurement apply, but other, more specific rules, also govern these relationships. The Municipal Systems Act, read with the Municipal Finance Management Act, for example, says that to make use of an external provider for the delivery of a municipal service, a municipality must use competitive bidding as a procurement method, comply with a process of community consultation and ensure that the entire process is fair, equitable, transparent, competitive and cost-effective.


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