Introduction to the Issue
The Mexican federal legislature, or Congress, has granted 70,836 contracts for public acquisitions, services, and works; communication social; honoraries; leases, and grants, agreements, and concessions totaling 35,734.1 million pesos between 2018 and 2024, according to the civil association Mexicanos contra la Corrupción y la Impunidad (MCCI).
Lack of Competitive Bidding and High Direct Awards
The report titled “Public Contracts in the Chamber of Deputies and Senate of the Republic from 2018 to 2024: Power, Opacity, and Discretion” reveals that Congressional contracts continue to occur without genuine competition and with a high percentage of direct awards, often referred to as “dedazo” (the finger). This method has been detected in the federal executive power, where eight out of ten contracts have been awarded this way for at least the last decade.
Average Daily Contracts
On average, both legislative chambers granted 27 contracts daily amounting to 13.8 million pesos, the report states. For the Chamber of Deputies, this represents an average expenditure of 6.8 million pesos with 15 contracts awarded daily, while the Senate of the Republic involves an average of 6.9 million pesos distributed across 12 contracts daily.
Extreme Cases
Upon examining 18,167 contracts with information on the type of procedure and awarded between 2018 and 2024, the report highlights that direct award was used for an average of 81.2% of the Chamber of Deputies’ contracts (worth 8,642.4 million pesos), while in the Senate of the Republic, this method was used in 90.7% of cases.
The document, spanning 165 pages, notes that in 2020, the highest percentage of direct award contracts was recorded: 94% in the Senate and 88% in the Chamber of Deputies. It emphasizes extreme cases, such as communication social and publicity contracts, where 100% were awarded through direct methods.
Relevance of the Congress and its Contracts
The Mexican Congress, composed of the Chamber of Deputies and the Senate of the Republic, plays a crucial role in shaping laws and policies that impact Mexican society. Understanding the implications of their procurement practices is essential for evaluating transparency, accountability, and potential corruption risks within the government.
Impact on Transparency and Accountability
The high percentage of direct awards in Congressional contracts raises concerns about transparency and accountability. When public institutions bypass competitive bidding processes, there is an increased risk of corruption, favoritism, and inefficient use of public resources. These issues can erode public trust in government institutions and hinder equitable development.
Comparison with the Federal Executive Power
The report’s findings on Congressional contracts parallel those of the federal executive power, where direct awards have been prevalent for at least a decade. This pattern suggests systemic issues within Mexico’s public procurement processes, necessitating broader reforms to promote transparency and fair competition.
Recommendations for Improvement
To address these concerns, several recommendations can be considered:
- Strengthening Transparency Laws: Enforce and update existing transparency laws to ensure that public procurement processes are open, accessible, and accountable.
- Promoting Competitive Bidding: Encourage genuine competitive bidding processes to minimize opportunities for corruption and favoritism.
- Independent Oversight: Establish independent oversight bodies to monitor public procurement processes and investigate allegations of corruption or irregularities.
- Capacity Building: Invest in training and capacity building for public officials involved in procurement processes to ensure they understand and adhere to transparency requirements.
Key Questions and Answers
- What is the issue at hand? The Mexican Congress has been awarding a significant number of contracts through direct awards, raising concerns about transparency and potential corruption.
- How many contracts were awarded, and what was the total amount? Between 2018 and 2024, Congress granted 70,836 contracts worth a total of 35,734.1 million pesos.
- What percentage of contracts were awarded through direct methods? On average, 81.2% of the Chamber of Deputies’ contracts and 90.7% of the Senate’s contracts were awarded through direct methods.
- What are the potential consequences of these practices? High direct awards can lead to increased corruption risks, favoritism, and inefficient use of public resources, eroding public trust and hindering equitable development.
