Declaration of Interest

The declaration regulates the environment within which quotations, competitive bids, limited bids and proposals should be considered when these forms of procurement are submitted by persons employed by the state or by persons connected with or related to persons employed by the state.

Sections 30 and 31 of chapter 7 of the Public Services Act stipulate that "no employee shall perform or engage himself or herself to perform remunerative work regarding employees of the state who are performing other remunerative work that outside his or her employment in the relevant department, except with the permission of the executive authority of the department."

The Treasury Regulations prescribe the following regarding compliance with ethical standards and avoiding abuse of the supply chain management system:
"If a supply chain management official or other role player, or any close family member, partner, or any close family member, partner or associate of such officials or other role player, has any private or business interest in any contract to be awarded, that official or other role player must:

• Disclose that interest; and
• Withdraw from participating in any manner whatsoever in the process relating to that contract."

The Treasury Regulations further prescribes what should be done once fraudulent or improper conduct has been discovered.

The National Treasury has issued a standard bidding document (SBD 4) Declaration of Interest as part of National Treasury practice note 7 of 2009 / 2010 which replaced the even numbered document issued 5 December 2003.

Departments are required to utilise the new bid document when inviting price quotations, competitive bids, limited bids or proposals. The new bid document will also be utilised when suppliers are registered on lists of potential / prospective suppliers.

Departments will be required to compel SCM officials to formally sign the relevant Codes of Conduct with an undertaking to adhere to their requirements. Newly appointed officials or officials transferred to the SCM unit will also be required to sign the Codes of Conduct.

All employees must ensure that the necessary approval is obtained to perform any remunerative work outside his or her employment by the state. Such approval must be obtained in term of:

• the Public Services Act, 1994,
• internal policies , or
• legislation relevant to the institution.

The head of the institution / department must implement and actively monitor the system of control to manage the performance of other remunerative work by employees. Disciplinary action can be taken against employees who perform other remunerative work with out the necessary approval.

The effective date of the above-mentioned requirements is from the date of issue of the National Treasury practice note 7 of 2009 / 2010 which is 2 October 2009.