a) Section 51(1)(a)(iii) of the PFMA requires the entity to implement and maintain an appropriate procurement and provisioning system which is fair, equitable, transparent, competitive and cost effective. Payments amounting to R1 357 499 were made in contravention of the supply chain management requirements. This amount was not disclosed in the note to the financial statements as irregular expenditure, resulting in irregular expenditure being understated by R1 357 499.