Finance Deviations from Supply Chain Management Policy: (5/16/1/2) (CFO)

STRICTLY CONFIDENTIAL

EXECUTIVE SUMMARY

SUBMISSION TO : Mayoral Committee & Council

DIVISION REQUESTING THE : Finance Department(SCM) SUBMISSION

TITLE OF THE SUBMISSION

Finance Deviations from Supply Chain Management Policy: (5/16/1/2) (CFO)

1. SOLUTION REQUIRED

Strategy Endorsement Commercial Options Approval Information X

2. PURPOSE

To inform Council of the deviations from 1October 2016 until 31 December 2016

3. BACKGROUND

In terms of Section 36(1) (a) of the Municipal Supply Chain Management Regulations, the Supply Chain Management Policy may allow the Accounting Officer to dispense the official procurement processes established by the policy, to procure any required goods or services through any convenient process. The Accounting Officer must record the reasons for all deviations in terms of sub regulation (1) (a) and report them to council in terms of Section 36(2) of the Municipal Supply Chain Management Regulations

4. FINANCIAL IMPLICATIONS

The total cost of the deviations for the period 1October 2016 until 31 December 2016 is R769 760.74

5. LEGISLATIVE PROVISION

Section 36(1) (a) of the Municipal Supply Chain Management Regulations Section 36(2) of the Municipal Supply Chain Management Regulations

7. RECOMMENDATION

That the attached list of deviations be noted 8. ATTACHMENTS

Attached hereto is a list of approved deviations.

COMPANY DESCRIPTION CONTRACT DATE REASON DEPARTMENT VALUE Batho Bantsho Replace Clutch and R 48 451.52 13/10/2016 Strip and quote due to the Fire and Rescue Trading and Clutch Cylinders on shortage of emergency vehicles Services Projects Samil 100 which poses a risk of a life /Mechanical ( LPM 449 GP) threatening situation, it was not Workshop (0001025983) possible to follow the normal procurement process. The Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1)(a)(v) of the Municipal Supply Chain Management Regulations Majahonke Replace brake pads, R 47 139.00 30/11/2016 Strip and quote due to the Parks / Mechanical Hydraulics outrigger legs, new breakdown of the TLB used by Workshop boots, new pipe the Parks Section for the digging control boom cylinder of graves resulted in that the (CRV 528 GP) department cannot execute their (0001026231) duties effectively. Due to this it was impractical to follow the normal procurement process. For this reason Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1)(a)(v) of the Municipal Supply Chain Management Regulations. Tshiqi Zebediela Legal Services R 94 648.00 06/12/2016 This request was for a specialist Municipal (0001026279) service. Due to the urgency of Managers Office the matter, the Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1)(a)(v) of the Municipal Supply Chain Management Regulations Dosima Recondition Engine on R103 683.67 09/12/2016 Strip and quote due to the Waste Construction & Mercedes Benz Truck breakdowns of the Waste Management / Trading (0001026282) Removal Trucks and in order to Mechanical render the waste removal Workshop service effectively, it was impractical to follow the normal procurement process. Base on this, the Accounting Officer was requested to deviate from the normal procurement process in terms of Section 36(1) (a) (v) of the Municipal Supply Chain Management Regulations. Nolewu Supply of 1x 200 R82 650.00 13/12/2016 Emergency due to a power Stores KVA/11/400 failure in Heidelberg Extension Transformer 23, which resulted in that it was (0001026282) impossible to follow the official procurement process. The Accounting Officer was requested to dispense the official process in terms of Section 36(1) (a)(i) of the Municipal Supply Chain Management Regulations. Anix Trading Emergency R180 000.00 19/12/2016 Emergency due to the Sewer Water and COMPANY DESCRIPTION CONTRACT DATE REASON DEPARTMENT VALUE 587 CC Vacuuming of the Flooded in Kwazenzele, the Sanitation Sewer Flooded in Accounting Officer was Kwazwenzele requested to dispense the (0001026338) official procurement process in terms of Section 36(1)(a)(i) of the Municipal Supply Chain Management Regulations Zest Supply of T3 Switch, R213 188.55 19/12/2016 Emergency due to several faults Electrical Refurbish T1,Strip and in the electricity network which Quote of Transformer were unknown, it was (0001026339) impossible to follow the normal procurement process. For this reason the Accounting Officer was requested to dispense the official procurement process, since it was an emergency and involves strip and quote in terms of Section 36(1)(a)(i)(v)(b)