News Cabinet Assumes Power to Authorize Direct Procurement
June 14, 2025
Critics warn move may invite corruption, citing weak oversight and audit gaps
A new directive ratified by the Ministry of Finance has formally transferred the authority to approve special direct procurements permit from the Public Procurement and Property Authority (PPPA) to federal ministers and heads of top institutions.
The piece of legislation ratified this month solidifies a controversial proposal that critics warn may loosen safeguards against corruption and deepen procurement opacity.
The directive allows public institutions to bypass open bidding procedures in “exceptional circumstances,” provided “compelling reasons exist” and standard methods are deemed unworkable. In such cases, “the Minister of the respective Public Body may grant special permission”, according to the directive.
However, the power to authorize this “special procurement” is clearly stated as non-transferable.
The rule also differentiates the authority chain depending on institutional reporting lines.
“For Public Bodies accountable to the House of Peoples’ Representatives or the House of Federation, the authority rests with the Head of the respective institution,” reads the directive, while those accountable to the Office of the Prime Minister will require approval from “the Head of the Office of the Prime Minister”.
This directive is the culmination of a draft proposal tabled earlier this year to the Ministry of Justice, which sought to transfer procurement approval powers from the PPPA to the cabinet. At the time, critics and lawmakers expressed alarm over the proposal, warning it would embolden political interference and sidestep competitive processes.
“Many public institutions have frequently been requesting the Authority for special procurement permits,” reads an Auditor General’s report presented to Parliament in April. “The Authority approved many special procurement permits for some and denied others. However, it did not justify the approvals.”
The audit found the PPPA had failed to assess whether procurements were conducted based on legal procurement standards, leading to growing skepticism about the integrity of the system.
Defending the move during a hearing, PPPA Director-General Meseret Meskele told lawmakers that the agency was overwhelmed and lacked the manpower to thoroughly vet special procurement requests.
“We have been trying to provide special procurement permits equitably to all institutions,” she said. “However, since our manpower is lacking, we could not assess and validate the factors for all the permits we approved.”
She argued that placing the authority to award special procurements directly in the hands of ministers would resolve this bottleneck. However, critics argue the directive shifts the problem, rather than solving it.
“As long as ministers and government officials have the legal power to order special procurement permits and enact direct procurement, it is difficult to minimize corruption,” a legal expert told The Reporter when the bill was being vetted more than three months ago. “Digitizing the system alone is not enough if the legal framework gives unchecked discretion to political figures.”
The newly ratified directive falls under Chapter Five of the Federal Public Procurement and Property Administration proclamation ratified in 2024. The law highlights four authorized procurement methods: “open, selective, limited tendering and direct procurement.”
However, It also allows for special procurement when traditional methods are deemed impractical, with the Ministry tasked with issuing detailed procedures and conditions for such cases.
“The Ministry shall issue a directive regarding the conditions and procedures whereby Public Bodies may execute special procurement when it is ascertained that they cannot procure by the procurement methods stipulated in this Proclamation,” it states.
Despite ongoing reforms and digitization of the government’s electronic procurement (eGP) system, in April auditors told MPs the system remains poorly integrated with critical agencies such as the Ministry of Revenue, Ministry of Trade, and the banking sector, as well as with regional administrations—further raising transparency concerns.
Still, Meseret told lawmakers that all 169 public institutions operating under the federal budget are conducting procurements through eGP.