The government, through the Public Procurement Regulatory Authority (PPRA), has announced plans to entrench into law a new levy.

In a statement, the Authority says the new levy, dubbed the Public Procurement Capacity Building Levy, will help in selling “persistent capacity gaps” in terms of human capital, organizational and legal framework.

“Public procurement has been faced with a number of challenges including corrupt and unethical practices, weak contract management, weak procurement planning, inadequate capacity of persons participating in the system, long turnaround time to conclude procurement processes, delays in payment of performed contracts, weak records management and oversighting a highly decentralized public procurement system, following implementation of the devolved system of governance,” the Authority stated.

“These challenges, based on the results of regulatory operations undertaken by the Public Procurement Regulatory Authority (the Authority), have been noted to emanate from persistent capacity gaps (in terms of human capital, organizational and legal framework) amongst persons participating in the public procurement and asset disposal system.”

PPRA says that the challenges have led to a lack of coordination, sustainability, consistency and even dissemination of conflicting information on various matters of public procurement practice.

“This has been exacerbated by inadequate budgetary provision to facilitate sustainable capacity development and mentoring of persons involved in public procurement and asset disposal system,” added PPRA.

The Authority says the proposed levy, which will be anchored in the Public Procurement and Asset Disposal Act, will be collected at the rate of 0.03% of every contract signed by the procuring entities at the point of payment of the contract prices.

Role of Public Procurement Capacity Building Levy

The Public Procurement Capacity Building Levy, according to PPRA, will provide adequate funds to facilitate the provision of sustainable capacity development, technical support and mentoring of all persons participating in the public procurement and asset disposal system, facilitate realisation of value for money, fiscal savings and ensure quality service delivery.

The levy, if it sails through, has been earmarked to support capacity development under three areas including human capital, organizational capacity and legal framework strengthening.

PPRA has already invited comments from members of the public, public entities, suppliers, professional bodies/associations, non-state actors, development partners and all interested stakeholders.

Those willing to comment on the Public Procurement Capacity Building Levy have been given up to August 31, 2023, to submit their comments.