OECD Integrity Review of Mexico

Taking a Stronger Stance Against Corruption

image of OECD Integrity Review of Mexico

The OECD's Integrity Review of Mexico is one of the first peer reviews to apply the new 2017 Recommendation of the Council on Public Integrity. It assesses (i) the coherence and comprehensiveness of the evolving public integrity system; (ii) the extent to which Mexico’s new reforms cultivate a culture of integrity across the public sector; and (iii) the effectiveness of increasingly stringent accountability mechanisms. In addition, the Review includes a sectoral focus on public procurement, one of the largest areas of government spending in the country and is considered a high-risk government activity for fraud and corruption. The Review provides several proposals for strengthening institutional arrangements and improving vertical and horizontal co-ordination, closing remaining gaps in various existing legal/policy frameworks, instilling integrity values and ensuring the sustainability of reforms.

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Strengthening the lines of defence against corruption: Risk management, internal control and audit

Public sector organisations should ensure that their “lines of defence” against fraud and corruption are strong and based on sound risk management, internal controls, and independent assurance (internal audit) activities. This comprehensive approach allows organisations to pre-emptively tackle potential corruption, detect integrity violations when they occur, continually monitor and improve controls over time, and more swiftly adapt to changing contexts and risks. As such, this chapter focuses on these three key elements in Mexico’s federal public administration. The first section assesses Mexico’s Ministry of Public Administration’s risk management process (the Administración de Riesgos Institutional, or ARI). The second section examines the internal control environment and processes put in place by the federal government and line ministries. The third section highlights the importance of an independent internal audit function for consulting senior management and providing assurance over the effectiveness and efficiency of internal control and risk management arrangements within public organisations.

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