Page 18 - WCPP Annual Report 2021-22_Draft #7.6.2

Annual Report for the 2021/22 Financial Year
Vote 2: Western Cape Provincial Parliament
Part A: General Information

Rollovers
For the 2021/22 financial year, an amount of R12,282 million (in respect of the underspending on
voted funds) and an amount of R350 000 (in respect of over collected own revenue) were approved
to be rolled over.

Virements
There were no Virements during the 2021/22 financial year.

Irregular, fruitless and wasteful and unauthorised expenditure
There were three cases of irregular expenditure with a total value of R693 791 and two new cases of
fruitless and wasteful expenditure with a total value of R2 160 reported during the 2021/22 financial
year. All three cases of irregular expenditure were condoned (R693 791).

4.2.3. Supply Chain and Asset Management (SC&AM)

No unsolicited bid proposals were received or concluded in the 2021/22 financial year.

Within the context of Covid-19, SC&AM has con nued to operate partly remotely and the unit,
specifically in terms of procurement process is able to func on remotely. In the instance of asset
management, assets are received onsite and the asset counts in the main have to be effected at the
precinct of the WCPP, with the excep on of the assets for personal use and the Disaster Recovery
server housed at the premises of the service provider charged with Wide Area Network (WAN)
services.

A further impact towards quarter 4 of the fiscal year was the court ruling of the Cons tu onal Court,
finding that clauses 3(b), 4 and 9 of the Preferen al Procurement Policy Framework Act (PPPFA)
Regula ons promulgated in 2017 to be unlawful, and the inter-relatedness of the unlawful sec ons’
impact on the rest of the Regula ons required that the Regula ons in full, were invalid. Guidance
and direc on in the form of an advisory note was provided by the Na onal Treasury indica ng that
procurement above the threshold of R30 000,00 should be kept in abeyance, or alterna vely that
organs of state exercise a request for an exemp on of using the PPPFA Regula ons in terms of

Sec on 3 of the PPPFA. Correspondence in this regard was prepared for approval of Na onal
Treasury.
A further interim arrangement in terms of Sec on 2(1) of the PPPFA was that each organ of state
must determine its own preferen al procurement policy and implement it. To this end, the WCPP
will amend its Supply Chain Management Manual, indica ng the adop on of the 2017 PPPFA
Regula ons with the excep on of the above iden fied unlawful regula ons.
The role of SC&AM extends from assis ng with the specifica on of the goods or services required,
through the tendering and bidding process, to the receipt and delivery of the goods and services at
the right me, the right quan ty, the right place and the right price for consump on and the
furtherance of the WCPP’s strategic objec ves.

The contractual administra on func on resides with SC&AM. The sec on manages and monitors
contracts for compliance and performance. In this regard SC&AM provides a wri en Sec on 41
report (a FMPPLA requirement) to the execu ve authority quarterly.

Annual Report for 2021/22 Financial Year Page 13