• Tuesday, July 16, 2024
businessday logo


Doherty seeks end to admin fees by Lagos procurement agency

Doherty seeks end to admin fees by Lagos procurement agency

Funsho Doherty, the governorship candidate of the African Democratic Congress (ADC) in the 2023 general election in Lagos State, has called for the stoppage of administrative fees charged by the state Public Procurement Agency (PPA) to procuring entities.

Doherty said the administration fees were illegal and a breach of existing law in the state. He stated this in an open letter to Governor Babajide Sanwo-Olu at the weekend which was shared on his Twitter handle.

The former governorship candidate further said that the administrative fees were in contravention of basic principles because they create a self-interest incentive for the PPA that impairs its organisational objectivity.

Read also: Jimoh advocates creation of revenue ministry

He added that the order for the fees which purportedly emanated from a circular from the head of service in Lagos State, undermined the purpose for the establishment of the agency.

According to Doherty, “The PPA law makes provision for a governing board, urgent structure and funding arrangements for the PPA, which we intended to promote the objectivity that its mandate requires.

“In this regard, funding of the PPA is expected to be by first-line charges appropriation in the budget approved by the House of Assembly.

“There is no provision in the enabling for an administrative fee to be paid to the PPA by procuring entities.”