COE Acknowledges Challenges in Enforcing Procurement Laws
Puebla, Pue. The Council of Business Entities (COE) acknowledged that it is challenging for authorities in Puebla to fully comply with the State and Municipal Public Sector Acquisitions, Leasing, and Services Law to ensure that 80% of their purchases are made with micro, small, and medium enterprises (MSEs). However, businesses themselves are not entirely accepting of the conditions set by prices and payment terms.
COE President César Bonilla Yunes Speaks on the Matter
César Bonilla Yunes, president of COE, stated that this is not an excuse for local governments to refrain from procuring goods and services. In previous administrations, businesses often operated outside the law.
As local officials approach one year in office, Bonilla Yunes noted that not all businesses in the metropolitan area have shown willingness to supply local enterprises with their supplies.
Balancing Government Procurement and Market Needs
Bonilla Yunes explained that while there is certainty of payment when working with the government, some suppliers of computer equipment, stationery, cleaning materials, and other products are reluctant to adjust their prices under annual contracts.
The mentioned law allows for a 2-3% price increase to compete with other companies, but not all businesses are interested in participating under these conditions.
“What we have been seeking is a price differentiation of at least 15%, which would be appealing to Puebla’s businesses to participate more in supplying insumos to the state government and local municipalities,” Bonilla Yunes elaborated.
He added that internal government consumption, while not ideal, currently accounts for about half of the 80% mandated by law. This percentage could increase slightly with necessary adjustments.
With an annual expenditure of around 7,000 million pesos on goods and services, Bonilla Yunes emphasized that there are opportunities for businesses to become suppliers if they meet transparency requirements.
MSEs’ Perspective and COE’s Recommendations
Some MSEs have insisted on price penalization as government suppliers, preferring to strengthen their market instead.
Bonilla Yunes urged the new state and municipal authorities to commit to increasing their procurement of supplies.
He pointed out that some municipalities, particularly in the metropolitan area, have the financial capacity to not only purchase products but also contract more local company services.
