Call for proposals for the provision of a banking service for the msunduzi municipality

• Tender documents available from: 12h00 on Monday, 20 July 2026.
• Closing date and time: Friday, 18 September 2026 at 12h00.
• Tender briefing/site inspection: No tender briefing meeting scheduled for this tender.
• Tender notice advertised in: The Witness newspaper on Friday, 17 July 2026.

• For technical enquiries: Contact Wellington Mtusva (Budget and Treasury Unit). Telephone: 033 – 392 2242. Email: [email protected].
• For procurement enquiries: Contact Lindani Dlamini (Supply Chain Management Sub-Unit). Telephone: 033 – 392 3092. Email: [email protected].
• Submission address: Msunduzi Municipality’s Central Stores, 2 Abattoir Road (off Kershaw Street), Pietermaritzburg, 3201.
• Supply Chain Management offices for document collection: 5th Floor, A S Chetty Centre, 333 Church Street, Pietermaritzburg.

Tenders must be submitted in both hard copy and on a CD/USB flash drive, contained in sealed envelopes marked with 'Contract No. SCM /27' and the contract description.

• Submit to: Tender Box at Msunduzi Municipality’s Central Stores, 2 Abattoir Road (off Kershaw Street), Pietermaritzburg, 3201.
• Closing: Friday, 18 September 2026 at 12h00. Only tenders placed in the Tender Box before this time will be accepted.
• Tender validity period: Four (4) months from the closing date.
• Required forms: Complete and sign the Tender Form, all Data Sheets (e.g., Declaration of Interest, Certificate of Independent Bid Determination), and Annexures.
• Disqualification risks: Failure to submit a valid Tax Clearance Certificate and Tax Compliance Status Verification Pin, or failure to provide CSD Supplier Number and Unique Registration Reference Number, will result in disqualification.
• Joint ventures/consortiums must submit Tax Compliance Status Verification Pins and CSD Reports for all parties, plus signed declarations and an undertaking.
• Tenders may be rejected if they show additional, conditional, or incomplete offers, or irregularities in the Tender Form or Pricing Schedule.

Must be registered on National Treasury's Central Supplier Database (CSD) with valid supplier number. Must submit valid Tax Clearance Certificate and Tax Compliance Status Verification Pin. Must not be in service of the state (including directors/managers). Must attend compulsory briefing if specified (not applicable here). Must complete all mandatory data sheets and declarations. Joint ventures must submit documentation for all parties. Functionality evaluation requires experience in municipal banking services (45 points) and qualified portfolio manager allocation (55 points).

Scope: Provision of banking and other financial services for a 5-year period.

• Core banking services required:
• User-friendly banking system.
• Competitive, market-related bank charges and commission.
• Immediate/timeous telephonic support.
• Speed point terminal services.
• On-site automated cash deposit service.
• Petty cash online ordering service.
• Internet/electronic banking solutions.
• Defined overdraft facilities.
• Electronic foreign exchange payment facility.
• Investment management services:
• User-friendly banking system for reporting and managing Council investments.
• Competitive, market-related rates.
• Immediate/timeous telephonic support.
• Internet/electronic banking solutions.
• Detailed specifications include:
• Multiple dedicated accounts (Main, Electronic Funds Transfer, Post Office/Easy Pay, Market, Airport, Traffic Fines) each with specific deposit identifier (DI) requirements.
• Cash centre facilities with video footage, cash float provision, and on-site automated cash deposit machines.
• Host-to-host electronic payment system for bulk transactions, compatible with SAP ECC6-EHP8.
• Point of Sale (POS) card payment terminals for customer payments.
• Transaction volume estimates provided (e.g., 5,000 EFT payments, R5.7 billion cash deposits).
• IT/SAP requirements including ISO certifications (e.g., ISO/IEC 27001, ISO 9001) and encryption standards.
• Council reserves the right to award services to different financial institutions or procure additional services separately.

Key evaluation criteria:

• Experience in providing banking services to municipalities: 45 points. Proof: reference letters on client letterhead describing contract and duration, plus award letters.
• Experience of portfolio manager: 55 points. Proof: CV and copies of qualifications; minimum 5 years' experience as banking portfolio manager to municipalities (30 points) and minimum NQF level 7 in Business Management, Finance, or Accounting (25 points).
• If portfolio manager changes during contract, replacement must have similar qualifications and experience, and municipality must be notified in writing.

ISO certifications required for IT/SAP systems:

• ISO/IEC 27001: Information Security Management Systems.
• ISO/IEC 20000: IT Service Management.
• ISO/IEC 38500: Governance of IT.
• ISO 9001: Quality Management Systems.
• ISO 22301: Business Continuity Management.
• Encryption standards: AES-256.
• Host-to-host solution must handle Council's transactional volumes and integrate with SAP ECC6-EHP8.

Pricing details:

• All prices must include VAT.
• Prices deemed to include all costs unless stated otherwise.
• Tenders may be rejected for irregularities in Pricing Schedule.
• Bank charges and interest rates subject to escalation based on SARB increases after first year.
• Interest on investments must be above prime rate as determined by SARB.

• All prices must include VAT, regardless of the bidder's VAT status.
• Prices quoted are deemed to include all costs (materials, labour, freight, insurance, etc.) unless stated otherwise.
• Tenders may be rejected for irregularities in the Tender Form or Pricing Schedule.
• Partial awards may be made to empower SMMEs or local suppliers.
• In case of discrepancy, prices in the Tender Form prevail over covering letters or pricing schedules.
• Bank charges and interest rates are subject to escalation based on South African Reserve Bank (SARB) increases after the first year.
• Interest on investments must be above the prime rate as determined by SARB.

• Mandatory registration with:
• South African Reserve Bank (SARB) under the Banking Act. Provide valid proof.
• Financial Sector Conduct Authority (FSCA). Provide valid proof.
• National Credit Regulator (NCR). Provide valid proof.
• Failure to submit proof of these registrations will result in disqualification.
• Central Supplier Database (CSD): Must be registered; provide CSD Supplier Number and Unique Registration Reference Number.
• Tax Clearance: Submit a valid Tax Clearance Certificate and Tax Compliance Status Verification Pin from SARS.
• Other required documents: CIPC Registration Certificate, Declaration of Municipal Fees, Declaration of Interest, Declaration of Bidder’s Past Supply Chain Management Practices, Certificate of Independent Bid Determination.
• Joint ventures/consortiums must submit documents for all parties.

Compliance with Occupational Health and Safety Act (OHS Act) required:

• Contractor must register as employer under OHS Act and Compensation for Occupational Injuries and Diseases Act (COID Act).
• Keep records of incidents, investigate incidents, and report to inspector.
• Designate a full-time employee to supervise work.
• Inform divisional inspector of work details before commencement.
• Also comply with Labour Relations Act and Basic Conditions of Employment Act.

• Contract period: 5 years from date of award.
• Tender validity: 4 months from closing date.
• Service Level Agreement (SLA) required before commencement of services.
• Penalties: If supplier fails to deliver, penalties based on prime interest rate per day of delay; Council may terminate contract.
• Insurance: Goods must be fully insured; Professional Indemnity and Fidelity cover required for contract duration.
• Compliance with legislation: Must comply with Municipal Supply Chain Management Regulations, MFMA, Banking Act, FAIS Act, National Credit Act, etc.
• Alterations by tenderer must be listed in Annexure A.
• Appeals: Objections must be lodged in writing within 14 calendar days of decision.
• Joint ventures/consortiums must submit specific documentation.

Two-stage evaluation:

• Stage One: Functionality (100 points). Minimum 80 points to proceed.
• Experience in providing banking services to municipalities: 45 points. Proof: reference letters and award letters.
• Experience of portfolio manager: 55 points. Proof: CV and qualifications; minimum 5 years' experience and NQF level 7.
• Stage Two: 80/20 Preference Point System.
• Price: 80 points.
• Preference Points: 20 points for Black Owned Enterprise (10 points), Women-Owned Enterprise (5 points), Location (5 points).