The ILM has established a Supply Chain Unit in line with the internal Supply Chain Management (SCM) Policy. The division is headed by the Chief Financial Officer. The calling for tenders to secure suppliers of goods and services is an integral part of SCM, as legislation compels public institutions to procure goods and services through this process. A thorough knowledge of the different phases of the tendering process and the accompanying procedures is therefore necessary to ensure that public officials procure goods and services timely and according to their requirements.

In line with the Municipal Finance Management Act (MFMA), the Accounting Offi er has approved the Bid Committees. The Municipality ensures that the tender process is fair, transparent, equitable and cost effective.


The supply chain management policy for the year 2017/2018 was reviewed and adopted by Council in May 2017 and implemented immediately thereafter. The SCM unit staff component has four employees, Accountant and two SCM Practitioners and one intern. Items of the MFMA SCM regulations the SCM policy of the municipality must provide for a system of demand, acquisition, logistics, disposal, risk and performance management, and our policy does provide for it. The following is a brief overview of the processes that have been established and implemented within our SCM system:


The procurement Plan defines the Supply Chain Management needs of the organization, aligned to the municipality’s IDP and Departmental SDBIP. The plan is for a minimum of one year but aligned to the IDP three year period, this is especially critical in the case of capital projects requiring the issuing of bids for multi year projects. As well as in order to obtain cost savings through longer term goods and service contracts (limited to three- year period in terms of the MFMA). The main objective of the plan is to assist the service deliver business units to achieve their service delivery mandates and to meet their service delivery requirements without any SCM processes delays and this forms the integral component of the entire process to ensure effectiveness efficient and economical SCM processes.


The municipality assessed and identified assets that need to be disposed off . The municipal council approved the disposal of some assets during 2017/2018, of which due to poor response of the bidders, disposal could not be proceeded and the task will be undertaken in the next Financial Year.


The monitoring of vendors’ function was performed at business unit level but is now understand by Supply Chain Unit in conjunction with the business unit. Also measures are now being put in place to ensure identification, consideration and avoidance of potential risks in the supply chain management system in accordance with regulation 41 of the SCM regulations. Four monitoring officers have been employed and projects are being monitored. The quarterly reports on performance assessments of contractors were submitted to Council for 2017/18 financial year.


The municipality has implemented all Supply chain policies, together will all the policies in the Budget and Treasury office the policies go to the council for review and adoption.The head of the SCM unit has completed attending a course at Wits, the SCM Accountant has attended a Municipal Finance Management Program, SCM practitioner has also completed requirement modules with Wits and another SCM Practitioner has completed the Municipal Finance Management course.