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PFMA SCM INSTRUCTION NO. 02 OF 2021/22 PUBLIC …

PFMA SCM INSTRUCTION NO. 02 OF 2021/22 PUBLIC FINANCE MANAGEMENT ACT (ACT 1 OF 1999) THRESHOLD VALUES FOR THE procurement OF GOODS AND SERVICES BY MEANS OF PETTY CASH, WRITTEN PRICE QUOTATIONS OR COMPETITIVE BIDS TO ALL: ACCOUNTING OFFICERS OF DEPARTMENTS ACCOUNTING OFFICERS OF CONSTITUTIONAL INSTITUTIONS ACCOUNTING AUTHORITIES OF SCHEDULE 3A AND 3C PUBLIC ENTITIES HEAD OFFICIALS OF PROVINCIAL TREASURIES 1. PURPOSE This INSTRUCTION is issued to ammend the procurement threshold values within which accounting officers / authorities may procure goods and services by means of petty cash, written price quotations or competitive bids. 2. INTRODUCTION Treasury Regulation makes provision for the procurement of goods and services by way of price quotations or through a bidding process within the threshold values as determined by the National Treasury.

4.2 Accounting officers / authorities must apply the prescripts of the Preferential Procurement Policy Framework Act, Act 5 of 2000 (PPPFA) and its associated Regulations in line with the conditions stipulated therein: 4.2.1 the accounting officer / authority may prescribe in the SCM policy of the institution that the

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IMPLEMENTATION GUIDE: PREFERENTIAL PROCUREMENT …

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IMPLEMENTATION GUIDE: PREFERENTIAL PROCUREMENT REGULATIONS 2017 Page 5 of 26 2. PURPOSE This Guide is intended to assist Accounting Officers and Accounting Authorities with the implementation of the Preferential Procurement Regulations, 2017 issued in terms of section 5 of the Preferential Procurement Policy Framework

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2.1 The Preferential Procurement Regulations, 2017 (‘the regulations’), made in terms of section 5 of the Preferential Procurement Policy Framework Act, 2000 (Act No 5 of 2000), which came into effect on 01 April 2017, make provision for the Department of Trade and Industry (the dti), now the Department of Trade, Industry and Competition

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7. AUTHORITY FOR THIS INSTRUCTION This National Treasury SCM Instruction is Issued in terms of section 76(4)(c) of the Public Finance Management Act, 1999. 8. CONTACT INFORMATION Enquiries related to this Treasury Instruction may be directed to: Office of the Chief Procurement Officer E-mail: cpo@treasury.gov.za _____

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1.2.3 Preferential Procurement Policy Framework Act No. 5 of 2000 (PPPFA) The Constitution provides that National Legislation must prescribe a framework within which the preferential procurement policy may be implemented. The objectives of the PPPFA are as follows: • to address the inequalities of the past;

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3.6 Accounting officers / authorities should apply the prescripts of the Preferential Procurement Policy Framework Act, Act 5 of 2000 and its associated Regulations for all procurement equal to or above R 30 000 (VAT included). However, these prescripts may be applied for procurement with a value of less than R 30 000, if and when appropriate.

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