The Public Procurement Regulatory Authority (PPRA) has announced an increase in fees and charges levied on procuring entities, including government institutions, banks, and contractors. The Authority stated that the adjustments align with the Public Procurement Act, which mandates cost recovery measures for its services.
In a circular dated February 28, 2025, PPRA Chief Executive Officer Tumelo Motsumi outlined the decision, emphasising that the revised fees are necessary for the Authority to sustain its operations. Section 33 (1) (b) of the Public Procurement Act stipulates that the Authorityโs funding sources include fees, charges, and levies collected from beneficiaries of its services.
The move is expected to have significant financial implications for businesses and government agencies that rely on procurement processes regulated by PPRA.
โIn an effort to enhance support to procuring entities and recover costs for its services, the Authority will introduce annual subscription fees, increase capacity-building fees, and charge procuring entities for procurement audits,โ said Motsumi. She added that the changes will take effect on April 1, 2025.
Introduction of annual subscription fees
In line with Section 33 (1) of the Public Procurement Act, the PPRA will introduce annual subscription fees of P75,000 for all procuring entities, effective April 1, 2025. Motsumi explained that the subscription fee will help the Authority recover costs related to the array of services it provides to procuring entities.
โThe services covered by the subscription fee include public procurement standards and practice setting, monitoring compliance and performance of procuring entities, issuance of standardised bidding packages, investigations, advice on public procurement plans, decisions, and authorising derogation, standardisation, and deviation from the Public Procurement Act,โ said Motsumi.
Increased Capacity-Building Fees
The PPRA will also increase capacity-building fees by 25 percent, effective April 1, 2025, to recover costs associated with program delivery expenses. The revised fees include workshops for procuring entities with 30 or fewer participants will increase from P15,000 to P19,000, half-day workshops will increase from P7,500 to P9,500 per day, workshops for contractors or private sector delegates will rise from P750 to P950 per day and workshops for private sector procuring entities, such as banks and commercial enterprises, will require a minimum of 30 participants, each paying between P1,000 and P1,300.
Introduction of procurement audit fees
The PPRA is mandated to carry out periodic audits and has commenced the process of drawing up an annual audit program for selected procuring entities during the 2025-26 financial year. Motsumi stated that the audit program will continue in subsequent years, with costs being recovered starting April 1, 2026.
Procuring entities are advised to make budgetary provisions for the audits in the 2026-27 financial year. โThe audit fees will be charged based on the type of audit, considering hourly rates, man-hours, and quality control,โ said Motsumi.
The introduction of these fees underscores the PPRAโs commitment to enhancing its services while ensuring financial sustainability. However, the adjustments are likely to place additional financial burdens on procuring entities, prompting calls for careful planning and budgeting to accommodate the new charges.
