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 heeded because, without stricter regulatory oversight, the integrity of our national procurement framework is under threat.
The principle behind micro-procurement is to streamline minor acquisitions and empower citizen-owned Small and Medium Enterprises (SME). The data shows success on one front, as citizen firms secured 74% of the number of awards. Yet, this victory rings hollow against the reality that the bulk of high-value capital remains with foreign entities. This disparity reveals a system where local businesses are funnelled into a fragmented marketplace of smaller contracts, whilst the most lucrative projects follow a different, less transparent path.
