Internal audit review of land bank life insurance credit life operations – policy administration, premiums and claims

Closing date and time: 20 October 2026 at 14:00

Written clarification questions close: 14 October 2026 at 16:00

Issue date: 09 October 2026

Estimated project duration: approximately 2 months, starting once procurement is finalised

Review period covered: transactions from 01 October 2025 to June 2026

SCM enquiries

• Contact: S. Mthombeni
• Email: [email protected]
• Telephone: not stated

Technical enquiries

• Contact: S. Mthombeni
• Email: [email protected]
• Telephone: not stated

Submission emails

• [email protected]
• [email protected]

Issuing office address

The Land and Agricultural Development Bank of South Africa

P O Box 375

Pretoria 0001

First Floor, Block A

Lakefield Office Park

272 West Avenue (corner of Lenchen Avenue and West Avenue)

De Hoewes, Centurion

Website: www.landbank.co.za

Submission method: email

• Submission emails: [email protected] and [email protected]
• Closing time: 14:00 on 20 October 2026
• Late bids are not accepted.
• Bids must be submitted on the official forms provided; forms may not be retyped.

Returnable documents

• Completed RFQ document.
• Price quotation aligned with the scope.
• Two signed client reference letters issued within the past 3 years confirming comparable internal audit assignments.
• Proof of good standing with SARS (verified via CSD or SARS e-filing PIN).
• Proof of CSD vendor registration (https://secure.csd.gov.za/).
• SBD 4 (Declaration of Interest): discloses any state employment or relationship with the procuring institution; a declared or identified conflict of interest renders the bid non-responsive.
• SBD 6.1 (Preference Points Claim): claims B-BBEE preference points under the 80/20 system.
• CIPC documents with ID copies of directors or owners; where shareholders or beneficiaries are registered trusts, also the Trust Deed, Letter of Authority and certified ID copies of all trustees and beneficiaries.
• Company ownership structure and share certificate with ownership details.
• Completed Vendor Accreditation Form.
• Cancelled cheque and/or stamped bank letter.
• Tax compliance status PIN issued by SARS together with a valid tax clearance certificate.
• B-BBEE certificate from a SANAS accredited rating agency or a sworn affidavit.
• Certified ID copies of shareholders/directors.
• FICA/KYC documents as listed in Annexure D.
• Proof of authority to sign (e.g. company resolution).

Outstanding documents

• Land Bank may request outstanding essential documents during evaluation; these must be provided within 5 working days.
• Failure to provide outstanding information in time renders the proposal non-responsive.

Disqualification risks

• Any mandatory requirement not met results in immediate disqualification.
• Any returnable form left incomplete, unsigned or unanswered.
• False declaration of information.
• A declared or identified conflict of interest.
• Failure to disclose all CSD-registered active companies linked to directors.

Essential returnable documents

• Proof of good standing with SARS, verified through CSD or a SARS e-filing PIN.
• Proof of registration as a vendor on the National Treasury Central Supply Database.
• SBD 4: fully completed and signed disclosure form; a declared or identified conflict of interest renders the bid non-responsive; all pages must be complete and all questions answered, with N/A indicated where appropriate.
• SBD 6.1: fully completed preference points claim form under the Preferential Procurement Regulations 2022.
• CIPC documents with ID copies of directors or owners.
• Where shareholders or beneficiaries are registered trusts: the Trust Deed, Letter of Authority and certified ID copies of all trustees and beneficiaries.
• Company ownership structure and share certificate with ownership details.

Outstanding documents

• Land Bank may request outstanding essential documents during evaluation; these must be provided within 5 working days.
• Failure to provide outstanding information in time renders the proposal non-responsive.

Two-stage evaluation.

Stage 1 — Mandatory requirements (immediate disqualification for non-compliance)

• Submit a completed RFQ document.
• Submit a price quotation aligned with the scope.
• Demonstrate proven experience in comparable internal audit reviews in the insurance or financial services sector, covering operational processes, policy administration, premiums, claims, reconciliations and internal controls.
• Submit two signed client reference letters issued within the past 3 years confirming successful completion of comparable assignments.

Stage 2 — Price and specific goals (only bidders passing Stage 1)

• Preference point system: 80/20.
• Price: 80 points.
• Specific goals: 20 points.
• Total: 100 points.
• Specific goals allocation: 10 points where the company is at least 51% owned by black people; 10 points where the company is at least 51% owned by black people who are women.
• A valid B-BBEE certificate or sworn affidavit must be submitted with the bid to claim specific goals.
• SBD 6.1 must be completed in full so that all B-BBEE and sub-contracting information is submitted by bid closing.
• Failure to submit the required proof or documentation means preference points for specific goals are not claimed.

Objective criteria and risk analysis (applied to the highest-ranked bidder)

• Compliant tax status at time of recommendation, based on an active tax compliance PIN.
• Fully compliant and registered on the National Treasury CSD.
• No misrepresentation in the tender information.
• No non-performance on Land Bank projects.
• Not listed on the Register of Tender Defaulters or the List of Restricted Suppliers.
• No conflict of interest affecting performance or compromising the process.
• No fraud or corruption conviction.
• Not removed from a contract with any organ of state for failure to perform or comply.
• Tendered rates must not be unduly high or unduly low; a financial risk analysis verifies that costs are reasonable and balanced, and distorted rates may disqualify a bid.
• Financial health may be assessed where necessary (accounts receivable and payable turnover, liquidity and solvency ratios); for an unincorporated JV or SPV, each partner's financial statements are consolidated.
• Civil judgements, serious offence convictions, pending litigation, poor performance history (including safety, health, quality control or environmental non-compliance) and reputational harm may be considered.
• Due diligence may be performed on the preferred bidder.
• Non-compliance may be negotiated with the highest-scoring bidder; if not resolved by close of negotiations, Land Bank may award to the next-ranked bidder.

Objective

• Assess whether the Operations Function processes are adequate and effective and aligned with internal policies and procedures.
• Identify the underlying causes of incidents, non-compliance, process failures, control breakdowns or adverse outcomes, and develop corrective and preventive actions that address root causes rather than symptoms.

Focus area

• Credit Life Function, a small division generating approximately R6 million in premium income per annum.
• Scope covers Land Bank Life Insurance, limited to insurance relating to Land Bank loan accounts.
• Review period: transactions from 01 October 2025 to June 2026.

Scope of work

• Governance and structure: board-approved structure, reporting lines and staffing.
• Policies and procedures: existence, review frequency and alignment with legislative requirements and related guidelines.
• Policy administration: onboarding of new policies, renewals, reinstatement of lapsed policies and cancellations.
• Premiums: authorisation, validity and accuracy; completeness of premiums collected against policies written; accurate and timely classification of policy status; timeliness of collection; approval and processing of refunds.
• Claims: authorisation, validity and accuracy; claims administration and management of the claims float.
• Reconciliations: bank reconciliations relating to premiums and claims.
• Complaints: adherence to the complaints process.
• Reporting and escalation: quality and timeliness of quarterly Operations Function reports to the Audit and Risk Committee, and escalation of high-risk issues and breach incidents.
• Safeguarding of information: access to shared folders, systems and tools used in the Operations process cycle.

Root cause analysis

• Define the event, failure, deviation or concern.
• Specify the affected business unit, process, system, project or transaction.
• Clarify the timeframe and sequence of events.
• Evidence to be considered: policies, SOPs, guidelines and governance documents; records, logs, reports and system data; internal and external correspondence; stakeholder interviews; audit and assurance reports, risk assessments and investigation outcomes; contractual documents where procurement is involved.

Methodology and delivery

• The review must follow Land Bank's Internal Audit methodology, audit framework, working paper templates and quality assurance standards.
• The service provider may use its own working paper templates; Land Bank templates are available on request.
• A risk-based sampling methodology may be applied; the nature and complexity of incidents can only be determined once the review starts.
• The focus is on system failures, regulatory breaches and operational errors.
• The service provider executes the review end to end; the Land Bank Internal Audit team provides oversight and administrative support and is the custodian of all deliverables.
• All working papers, final findings, supporting evidence and related documentation must be uploaded to Land Bank's Teammate system using a Land Bank-assigned laptop at the conclusion of the review.

Deliverables

• Approved audit plan, methodology, risk assessment, information requirements and audit programme.
• Assessment of governance, organisational structure, resourcing, competencies, job profiles and segregation of duties.
• Policy and procedure assessment covering adequacy, effectiveness, compliance and alignment.
• Policy administration assessment covering onboarding, renewals, lapsed policies, reinstatements and cancellations.
• Premiums assessment covering validity, accuracy, completeness, collection, classification, timing and refunds.
• Claims and reconciliations assessment covering claims administration, claims float and bank reconciliations.
• Complaints, reporting and escalation assessment.
• Information safeguarding assessment.
• Root cause analysis.
• Corrective and preventive action plan with responsible parties and proposed timeframes.
• Draft audit report detailing findings, risks, root causes, impact and recommendations.
• Final audit report incorporating management responses and agreed actions, with a presentation of key findings to management and/or governance structures.

Approach

• Discuss with process owners to understand key processes and documented policies and procedures.
• Inspect available documentation to establish process objectives and, with management, identify risks and related controls for each key process.
• Evaluate whether existing controls adequately mitigate identified risks.
• For controls assessed as adequate, develop test procedures discussed with management before testing, including walk-through tests, analytical procedures, re-performance of key transactions and substantive testing.
• For controls assessed as inadequate or ineffective, raise an issue summary recommending an adequate control in consultation with management.
• Management comments on the issue summary are provided timeously and signed off.

Assumptions

• The appointed service provider has full access to all required documentation.
• All documentation provided is complete, approved and signed off by business.
• All necessary IT system access is granted in line with Land Bank's IT policies.
• Business resources are available for discussions and interviews on reasonable notice.
• Management comments are provided within a week of discussion of the report.

Reporting

• An audit report covering the review outcomes is prepared and issued to management.
• The report includes detailed findings with management responses, root causes, action plans, implementation dates and responsible persons.

The review must be performed in accordance with Land Bank's Internal Audit methodology, audit framework, working paper templates and quality assurance standards.

The service provider may use its own working paper templates; Land Bank templates are available on request.

Testing procedures for controls assessed as adequate include walk-through tests, analytical procedures, re-performance of key transactions and substantive testing; these are discussed with management before testing.

Where controls are inadequate or ineffective, an issue summary recommending an adequate control is raised in consultation with management.

Management provides comments on the issue summary and signs off on them.

All working papers, final findings, supporting evidence and related documentation must be uploaded to Land Bank's Teammate system at the conclusion of the review.

Pricing is a fixed, all-inclusive fee per deliverable, based on successful completion and acceptance of the output.

Priced deliverables (fixed fee excluding VAT)

1. Audit planning and risk assessment: approved audit plan, methodology, risk assessment, information requirements and audit programme.
2. Operations Function assessment: governance, organisational structure, resourcing, competencies, job profiles and segregation of duties.
3. Policy and procedure assessment: adequacy, effectiveness, compliance and alignment.
4. Policy administration assessment: onboarding, renewals, lapsed policies, reinstatements and cancellations.
5. Premiums assessment: validity, accuracy, completeness, collection, classification, timing and refunds.
6. Claims and reconciliations assessment: claims administration, claims float and bank reconciliations.
7. Complaints, reporting and escalation assessment: complaints management, reporting, escalation of high-risk matters and breach incidents.
8. Information safeguarding assessment: access to shared folders, systems, tools and information.
9. Root cause analysis: underlying causes of incidents, non-compliance, process failures, control breakdowns or adverse outcomes.
10. Corrective and preventive action plan: practical actions with responsible parties and proposed timeframes.
11. Draft audit report: findings, risks, root causes, impact and recommendations.
12. Final audit report and management presentation: final report incorporating management responses and agreed actions, with presentation to management and/or governance structures.

• The schedule also provides for any other costs, a subtotal excluding VAT, VAT, and a grand total including VAT.

Price instructions

• Pricing must be output/deliverable based, not based solely on hours or days worked.
• Each fixed fee must cover all resources required to deliver the output.
• Quoted fees must include professional fees, administrative costs, travel, accommodation, disbursements and other expenses unless specifically excluded.
• Travel, accommodation and other disbursements must be clearly indicated and included in the quoted fee.
• Exclusions and assumptions must be clearly stated.
• Land Bank may request a detailed breakdown of quoted fees.
• Prices remain firm for the duration of the contract and must be valid for 120 days, including provision for price increase.
• All pricing must exclude VAT, with VAT shown separately.
• No price adjustments will be entertained; the pricing document is assumed complete and to cover all costs.

Pricing format

• Fixed, all-inclusive fee per deliverable, priced on successful completion and acceptance of the output.
• Pricing must be output/deliverable based, not based solely on hours or days worked.
• Each fixed fee must cover all resources required to deliver the specified output.
• Quoted fees must include professional fees, administrative costs, travel, accommodation, disbursements and other expenses unless specifically excluded.
• Travel, accommodation and other disbursements must be clearly indicated and included in the quoted fee.
• Exclusions and assumptions must be clearly stated.
• Land Bank may request a detailed breakdown of quoted fees.
• All pricing must exclude VAT, with VAT shown separately.
• Prices must remain firm for the duration of the contract and be valid for 120 days, including provision for price increase.
• No price adjustments will be entertained; the pricing document is assumed complete and to cover all costs.

Priced deliverables (fixed fee excluding VAT)

1. Audit planning and risk assessment.
2. Operations Function assessment.
3. Policy and procedure assessment.
4. Policy administration assessment.
5. Premiums assessment.
6. Claims and reconciliations assessment.
7. Complaints, reporting and escalation assessment.
8. Information safeguarding assessment.
9. Root cause analysis.
10. Corrective and preventive action plan.
11. Draft audit report.
12. Final audit report and management presentation.

• The schedule also provides for any other costs, a subtotal excluding VAT, VAT, and a grand total including VAT.

Financial capacity

• Financial health may be assessed where deemed necessary to confirm the bidder can deliver, using accounts receivable and payable turnover, liquidity and solvency ratios.
• For an unincorporated JV or SPV, each partner must submit financial statements, which are consolidated to determine capability.
• Unduly high or unduly low tendered rates may lead to disqualification following a financial risk analysis.

Statutory and registration requirements

• CSD registration: proof of registration as a vendor on the National Treasury Central Supplier Database.
• Tax: valid tax compliance status PIN issued by SARS, plus a valid tax clearance certificate; status is verified via CSD or SARS e-filing and re-checked at recommendation stage.
• Consortia, joint ventures and sub-contractors: each party must submit a separate tax compliance certificate, PIN or CSD number.
• Where no tax compliance PIN is available but the bidder is registered on the CSD, a CSD number must be provided.
• CIPC documents with ID copies of directors or owners; for trusts, the Trust Deed, Letter of Authority and certified ID copies of all trustees and beneficiaries.
• Company ownership structure and share certificate with ownership details.
• Certified ID copies of shareholders and directors.
• Cancelled cheque and/or stamped bank letter.
• Completed Vendor Accreditation Form.
• All supplier information and disclosure forms must be completed, signed and stamped by a Commissioner of Oaths.
• Proof of authority to sign, such as a company resolution.

B-bbee

• A valid B-BBEE certificate from a SANAS accredited rating agency, or a sworn affidavit, is required to claim specific goal points.
• Preference system: 80/20.
• Specific goals: 10 points for at least 51% black ownership; 10 points for at least 51% black women ownership.
• SBD 6.1 must be completed in full and submitted by bid closing.
• Failure to submit the required proof means specific goal points are not claimed.

Exclusion

• No bids will be considered from persons in the service of the state, companies with directors in the service of the state, or close corporations with members in the service of the state.
• Bidders listed on the Register for Tender Defaulters or the List of Restricted Suppliers are automatically disqualified.
• Any false declaration results in exclusion from consideration.

Other compliance

• FICA: comprehensive PEP screening is conducted on the successful bidder; KYC documents as listed in Annexure D must be submitted.
• POPI Act: submission of personal information constitutes consent to processing by Land Bank and its stakeholders, and the bidder indemnifies Land Bank against claims arising from that processing.
• Confidentiality: the successful bidder must sign a confidentiality agreement covering Bank data and information.

Land Bank applies the preference system to suppliers compliant with the Broad-Based Black Economic Empowerment Act and the Preferential Procurement Policy Framework Act.

Preference system: 80/20.

Specific goals

• At least 51% owned by black people: 10 points.
• At least 51% owned by black people who are women: 10 points.

Evidence

• A valid B-BBEE certificate from a SANAS accredited rating agency, or a sworn affidavit substantiating the B-BBEE rating, must be submitted with the bid.
• The bidder must indicate how points are claimed for each preference point system in SBD 6.1 and attach the B-BBEE certificate or sworn affidavit.
• Failure to submit the required proof or documentation means preference points for specific goals are not claimed.

The successful bidder must complete and sign the written contract form (SBD 7).

The bid is subject to the Preferential Procurement Policy Framework Act, 2000, the Preferential Procurement Regulations, the General Conditions of Contract, and any applicable special conditions of contract.

Confidentiality

• The successful bidder must sign a confidentiality agreement covering Land Bank data and information.

Amendment rights

• Land Bank may amend the terms of reference at its sole and absolute discretion.

Objective criteria and risk analysis

• The highest-ranked bidder is reviewed for: compliant tax status at recommendation stage based on an active tax compliance PIN; full CSD registration and compliance; no misrepresentation; no non-performance on Land Bank projects; not listed on the Register of Tender Defaulters; no conflict of interest; no fraud or corruption conviction; not removed from a contract with an organ of state for failure to perform or comply; and tendered rates that are neither unduly high nor unduly low.
• A financial risk analysis verifies that costs are reasonable and balanced; distorted rates may disqualify a bid.
• Financial health may be assessed where necessary using accounts receivable and payable turnover, liquidity and solvency ratios; for an unincorporated JV or SPV, each partner's financial statements are consolidated.
• Civil judgements, serious offence convictions, pending litigation, poor performance history (including safety, health, quality control or environmental non-compliance) and reputational harm may be considered.
• Due diligence may be performed on the preferred bidder.
• Non-compliance may be negotiated with the highest-scoring bidder; if unresolved by close of negotiations, Land Bank may award to the next-ranked bidder.

FICA and compliance checks

• Comprehensive PEP screening is conducted on the successful bidder.
• KYC documents as listed in Annexure D must be submitted.

Protection of personal information

• Submission of personal information constitutes consent to processing by Land Bank and its stakeholders under the POPI Act.
• Information may be made available to third parties strictly for oversight of the appointment.
• The bidder indemnifies Land Bank against civil or criminal action, administrative fines, penalties or loss arising from the processing of submitted personal information.

Stage 1 mandatory requirements — non-compliance results in immediate disqualification

• Submit a completed RFQ document.
• Submit a price quotation aligned with the scope.
• Demonstrate proven experience in comparable internal audit reviews in the insurance or financial services sector, covering operational processes, policy administration, premiums, claims, reconciliations and internal controls.
• Submit two signed client reference letters issued within the past 3 years confirming successful completion of comparable assignments.

Two-stage evaluation.

Stage 1 — Mandatory requirements: non-compliance results in immediate disqualification.

Stage 2 — Price and specific goals: only bidders that passed Stage 1 are considered.

• Preference point system: 80/20.
• Price: 80 points.
• Specific goals: 20 points.
• Total: 100 points.

Specific goals

• At least 51% owned by black people: 10 points.
• At least 51% owned by black people who are women: 10 points.
• A valid B-BBEE certificate must be submitted with the bid to qualify for specific goals.
• SBD 6.1 must be completed in full so that all B-BBEE and sub-contracting information is submitted by bid closing.