26 September 2012
The OECD presented the initial findings and recommendations of the OECD Public Procurement Review of the State Employees’ Social Security and Social Services Institute (Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado, ISSSTE) of the United Mexican States.
ISSSTE is an important health care and social services provider in Mexico, and supports more than 12 million employees of the public sector (active or retired) and their families. In early 2012, it requested the OECD to review the integrity and efficiency of its procurement system.
Prepared in partnership with ISSSTE, the OECD review will:
- Review the legal and institutional framework applicable to ISSSTE’s public procurement;
- Assess its procurement processes and practices against international best practices, and identify areas of risks or inefficiencies;
- Evaluate ISSSTE’s procurement capabilities (human resources, tools, IT systems); and
- Issue specific recommendations on how to improve management effectiveness, capacities, control and accountability, optimise use of resources and outcomes, and prevent corruption
Extensive research took place under this initiative, including more than 40 interviews with employees of ISSSTE and other Mexican federal entities, as well as with suppliers of ISSSTE and civil society representatives.
The joint event hosted by ISSTE and the OECD drew more than 140 ISSSTE employees, including its Director General Sergio Hidalgo Monroy Portillo. Representatives of other Mexican federal agencies were also present to participate in the dialogue, such as the Ministry of Public Administration (SFP), the Federal Competition Commission (CFC), Federal Superior Audit (ASF) and the Mexican Institute of Social Security (IMSS).
The OECD acknowledged significant initiatives undertaken by ISSSTE within the last year to improve its procurement function and provided initial recommendations for further improvements in areas such as co-ordination, performance and data management, e-procurement, professionalisation of the procurement workforce, integrity and transparency. ISSSTE welcomed these initial findings and recommendations and indicated agreement with them.
ISSTE also presented the outline of an organisational procurement strategy, covering the whole procurement cycle as well as transversal elements such as profesionnalisation and information automation. An open discussion took place on this strategy as to better define it and identify potential risks and challenges.
The event was recognised by both ISSSTE and the OECD as an important step in the review and the institute’s efforts to improve its procurement function. A survey of attendees following the event gave the report’s initial findings and recommendations high marks both in terms of quality and feasibility of implementation.
A final version of the public procurement review will be presented to ISSSTE in the next months and will be subject to review and discussion with OECD member countries.