With respect to the compliance with MFMA, the KHLM told the Committees that supply chain management policy is in place and that this policy provides for the establishment of a bid committee. The KHLM reported that it does not have a budget and treasury office (BTO); as a result, it does not comply with the provisions of section 80 of the MFMA. The KHLM argued that, due to limited staff and budget constraints in the past, a budget and treasury office could not be established and the Chief Financial Officer could not be appointed. However, the KHLM said that its position has improved and the appointment of a CFO has been identified as a priority in their municipal turnaround strategy.