Chapter 13: Finance (2) (3) or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective. Subsection (1) does not prevent the organs of state or institutions referred to in that subsection from implementing a procurement policy providing for— (a) categories of preference in the allocation of contracts; and (b) the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination. National legislation must prescribe a framework within which the policy referred to in subsection (2) must be implemented. [Sub-s. (3) substituted by s. 6 of the Constitution Seventh Amendment Act of 2001.] Government guarantees 218. (1) (2) (3) The national government, a provincial government or a municipality may guarantee a loan only if the guarantee complies with any conditions set out in national legislation. National legislation referred to in subsection (1) may be enacted only after any recommendations of the Financial and Fiscal Commission have been considered. Each year, every government must publish a report on the guarantees it has granted. [Date of commencement of S. 218: 1 January 1998] Remuneration of persons holding public office 219. (1) (2) An Act of Parliament must establish a framework for determining— (a) the salaries, allowances and benefits of members of the National Assembly, permanent delegates to the National Council of Provinces, members of the Cabinet, Deputy Ministers, traditional leaders and members of any councils of traditional leaders; and (b) the upper limit of salaries, allowances or benefits of members of provincial legislatures, members of Executive Councils and members of Municipal Councils of the different categories. National legislation must establish an independent commission to make recommendations concerning the salaries, allowances and benefits referred to in subsection (1). 118

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