Reforming ISSSTESON’s Public Procurement for Sustainability

image of Reforming ISSSTESON’s Public Procurement for Sustainability

This review analyses public procurement policies and practices of ISSSTESON, the institution providing health and pension services to the workers of the State Government of Sonora, Mexico. It benchmarks ISSSTESON practices against the 2015 Recommendation of the Council on Public Procurement to help the institute upgrade its procurement operations and increase efficiency, in a difficult financial environment. It also examines the revenue structure of the Institute and suggests reforms for the pension scheme, which is too generous compared to national and international experience.

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Managing Risks and Supporting Accountability throughout the Public Procurement Cycle

Public procurement is a government activity subject to a high potential risk of corruption, conflicts of interest and inefficient use of public resources. Some of the chief reasons why public procurement is considered a high-risk activity are the volume and the regularity of transactions, the close interaction between the public and private sectors, and the complexity of the procedures. The fact that it involves significant financial resources creates both opportunities and incentives for dishonest behaviour on the part of public officials and private suppliers.

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