| Thu 7 Nov 2024, 10:15 | | Umgeni-Amendment of SCM Policy |
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Umgeni-Amendment of SCM Policy
uMngeni-uThukela Water
Registration number: 1997/007707/07
JSE Alpha code: BIUMWA
Amendment to the Supply Chain Management Policy ("SCM Policy")
Pursuant to Paragraph 7.14 of the JSE Debt Listings Requirements, noteholders are advised of the
following amendments to the SCM policy.
The SCM Policy was previously reviewed in December 2021 and would have been due for review
only in 2025. However, the SCM Regulatory environment is evolving ever so rapidly, with new
legislation and Treasury Instructions issued/published regularly. In ensuring alignment to
current/newly introduced legislative and compliance requirements, it is becomes necessary for
Umgeni Water's SCM policies and procedures to be reviewed and updated as and when new
prescripts are promulgated.
The amendment primarily seeks to reflect and internally regulate procurement through other means
(deviations) and processing of contract variations and expansions as prescribed by Instruction Note 3
of 2021/22 Enhancing Compliance Transparency and Accountability in SCM. Furthermore, some of
the introduction of the Preferential Procurement Regulations of 2022 has resulted in the need for
policy updates accordingly.
Listed hereunder is a summary of changes effected to the attached Revision 9 of the SCM Policy;
a) Removal of "Accounting Officer" and Local Content from definitions"
b) Addition of a clause on Delegation of Authority and Mandates for SCM Decisions and Sub-
Delegation, sections added to mandate CE on approval of deviations and contract variations to
Instruction Note 3
c) Updates to the following clauses:
(i) Deviations from competitive procurement process
(ii) Preferential procurement;
(iii) Infrastructure and Construction Procurement(general principles); and
(iv) Contract Variations/Change Requests
d) Upon review of the amended policy, the sub-committees of the Board contributed and suggested
further updates to strengthen and improve veracity of the SCM Policy, which have been
incorporated to the document. The contributions include inter alia, policy provisions to ensure
congruence with broader SCM prescripts, clearly distinguishing and using the prescribed definitions
for terms such as emergency or urgent situations, and the inclusion of clauses that speak to
procurement administration.
Version 9 of the policy can be accessed through the following link:
https://umngeni-uthukela.co.za/wp-content/uploads/2024/10/UUW-SCM-Policy.pdf
7 November 2024
Debt Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Date: 07-11-2024 10:15:00
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