25 July 2025
All municipalities in South Africa – whether local like Stellenbosch, district, or metro – must follow strict rules when spending public funds or appointing contractors. These rules are set out in national legislation such as the Municipal Finance Management Act (MFMA), the Municipal Systems Act and others. Each municipality also has a supply chain policy that aligns with these laws.
When work or services are needed above a certain value, municipalities are required to follow a formal tender process. This process is open and transparent, allowing any qualifying company or contractor to submit a bid. After the closing date, all submissions are evaluated by municipal officials only – not councillors. No councillor, including the Mayor or any member of Council, is allowed to participate in, influence, or sit on these committees.
The evaluation process follows strict criteria and involves several internal committees. All meetings are recorded and audited to ensure fairness, transparency and full accountability. These processes are audited annually by the Auditor General of South Africa.
An important part of every bid is the location of the company. This is clearly stated in the tender documents and is considered during the evaluation. However, location is just one of several factors—including price, experience, technical ability and value for money—that are considered, as required by legislation.
While local representation is desirable, it is not always feasible or in the best interest of the municipality or its residents to appoint only contractors in areas in which they reside/work. This is the reality in both the public and private sectors. Contractors must be able to meet the requirements, deliver quality work and offer good value—regardless of where they are based.
If a bidder is unsuccessful, they are entitled to request feedback or lodge an appeal within 21 days.
This is a legal, administrative process designed to ensure fairness, transparency and responsible use of public funds. We urge residents not to spread misinformation or politicise this process. These systems are in place to protect communities and ensure service delivery is done properly and fairly.
