Issue Date: 
Wednesday, April 6, 2016

Central Supplier Database Registration - From 1 April 2016 Onwards

The transitional period for registering on the Central Supplier Database expired on 1 April 2016. During the transitional period private business owners had to ensure that they were registered on the CSD should you want to do business with a Government entity. On the other side of the coin, all accounting officers and authorities of Government had to managed their own supplier database and ensure that they were accurate and valid in order to be migrated to the Central Supplier Database.

An important fact worth knowing is that with effect from 1 April 2016, Government entities may not extend any existing contracts nor institute any new contracts for computerized database systems for management of their list of prospective suppliers without written approval of the National Treasury. Any computerized database systems in Government departments, constitutional institutions or public entities that are operational during the transition period, may be utilized until their expiry. In cases where existing contracts expire during the transitional period, these contracts may be extended but not beyond 1 April 2016 without written approval of the National Treasury. This is a clear directive to all Government Entities that from 1 April 2016 they must utilize the Central Supplier Database and not their own databases.

The whole idea is that Government Entities must utilize the CSD as their only source of suppliers. For this reason it is very important for business owners to register on the CSD. It is also important to ensure that all your business information and documentation are captured timeously and accurately.

According to National Treasury circular No 3 of 2015/2016 paragraph 7.3, with effect from 1 April 2016, accounting officers and authorities of Government entities are not allowed to award any bid to a supplier who is not registered on the Central Supplier Database.  So, if you are not registered then go and do it now!

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When Must I Sub-Contract?

There seems to be a lot of confusion amongst entrepreneurs when it comes to tenders and sub-contracting. The Draft Preferential Procurement Regulations, have been gazetted and are currently up for review. However, these Regulations are the major cause for the confusion. Many entrepreneurs ask whether they should sub-contract or not whilst responding to a tender.

The Draft Preferential Procurement Regulations stipulates the following: 

  1. For contracts above R30 million, the tenderer MUST sub-contract a minimum of 30% of the value of the... Read More
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