PPADB tenders down P4bn as rejection rate balloons

Government's procurement agency is talking a tough stance in its processes
Government's procurement agency is talking a tough stance in its processes

The Public Procurement and Asset Disposal Board (PPADB)’s percentage of tenders rejected increased to 23% in 2018, exceeding the parastatal’s own 10% target for the applications it turns down in any single year.

The 23% rejection rate for the 2017/2018 financial year was up from 15% the previous year. According to the PPADB’s recently released 2017/18 financial year, of the 253 tenders sent by various ministries for approval, 57 bit the dust.

During the year under review, the board received 614 submissions with only 253 of those requiring the board to make adjudication decisions. The rest were only submissions for the PPADB to note. However the board approved 131 submissions, deferred its decision on 65 of them and outright rejected 57.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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