CASE SUMMARY
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Transparency Mexico Integrity Pact with Public Safety Secretariat
Country: Mexico
Sector: Insurance
Initiative Type:  Integrity Pact

Detailed Information :

Mexico

Year of Establishment: 2003

Project Phase: Completed

Participants: Transparency Mexico, Mexico’s Secretary of Public Safety, bidding companies

Scope:

  • Integrity Pact for rendering of property insurance services

Key Facts:
Description

  • In a bid for rendering property insurance services, the Secretary of Public Safety of Mexico and bidding companies agreed to set up an integrity pact with an external monitor to ensure transparency in the bidding process.
  • Transparency Mexico designated an external monitor to be present at all events related to the bidding to observe and then write a public report about the bidding process.The final report stated that while the bidding process was transparent and fair, it was so rigid that only one bidding proposal was submitted.


Key Learning:

  • An Integrity Pact should be simple and easy to understand (no legal complexity).
  • Rigid bidding process may stop bidders from submitting proposals.

Mechanisms:

  • Monitor: Providing independent monitors to observe every stage and act of the bidding process.
  • Cost: Mexico’s Secretary of Public Safety and the winning bidding company shared the costs.
  • The monitor has to be known and recognized in his field. The monitor does not have the right to vote during the selection process.
  • The role of the monitor is:
    • Attending at all meetings related to the bidding
    • Writing public report on bidding process
    • Proposing mechanisms to make the process more transparent and fair
    • Ensuring rules and norms are respected.

Benefits:

  • The external monitor helped keeping the bidding transparent.

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