OECD integrity review of Mexico City : upgrading the local anti-corruption system.

Foreword
Acknowledgements
Abbreviations and acronyms
Executive summary
	A comprehensive and resilient public sector integrity system based on evidence
	Building and sustaining a culture of integrity
	Strengthening and mainstreaming internal control
	Addressing integrity in public procurement
Chapter 1.  Laying the groundwork for a coherent integrity system  in Mexico City
	1.1. Introduction
	1.2. Creating clear responsibilities and co-ordinating public sector entities under the Anti-corruption System of Mexico City
		1.2.1. The inclusion of the Council for Evaluation and the Control Body of the Congress in the current design of the Co-ordination Committee needs to be carefully assessed by Mexico City ensuring independence and taking into account the expertise of t...
		1.2.2. The Co-ordination Committee could be strengthened by inviting other key integrity actors to participate on a regular basis.
		1.2.3. Two technical sub-commissions of the Executive Commission, on prevention and detection/punishment, could be established.
		1.2.4. A dedicated contact point for the anti-corruption system in each government entity involved could streamline policy implementation.
		1.2.5. While implementing the Local Anti-corruption System at the local level, the Executive Secretariat could provide support to the territorial demarcations and offer a forum for feedback.
		1.2.6. Mexico City will have to allocate adequate financial and human resources to the Local Anti-corruption System to guarantee its effectiveness.
	1.3. Managing the risk of undue influence of appointments
		1.3.1. To shield the Technical Secretary from undue influence, Mexico City could mandate that the Governing Body of the Local Anti-corruption System have the authority to appoint and remove the Secretary.
	1.4. Improved accountability through a whole-of-society approach
		1.4.1. The Citizen Participation Selection Commission and members of the Citizen Participation Committee should be appointed under clear and transparent criteria and held accountable to the same integrity standards as public servants.
		1.4.2. Inviting the private sector to meetings of the Citizen Participation Committee would ensure a more inclusive public integrity system based on the concerns of society at large.
	Proposals for action
		The Local Anti-corruption System: Creating clear responsibilities and strengthening co-ordination
		Managing the risk of undue influence of appointments
		Improved accountability through a whole-of-society approach
	Notes
	References
Chapter 2.  Developing a strategic approach to public integrity in  Mexico City
	2.1. Introduction
	2.2. Developing a strategic approach to public integrity
		2.2.1. The Co-ordination Committee could conduct a preliminary diagnosis of priority areas, by leveraging the data provided by the National Institute for Statistics and Geography and other expert assessments of corruption.
		2.2.2. The Action Plan would need to be translated into a plan tailored to each government entity and included in its Annual Operational Programme.
		2.2.3. The Co-ordination Committee could develop a sub-strategy for sectors identified in the initial diagnostic as presenting a particular integrity risk.
	2.3. Monitoring and evaluation
		2.3.1. The Executive Commission of the Local Anti-corruption System could invite the General Co-ordination for Administrative Modernisation to meetings to help draft the monitoring and evaluation framework.
		2.3.2. In developing the monitoring and evaluation framework, the Executive Commission could call on the technical expertise of the Executive Secretariat.
		2.3.3. The Executive Commission could enlist the technical expertise of the Executive Secretariat to develop indicators for the Annual Plan.
		2.3.4. The Co-ordination Committee could use the public annual report on the Anti-corruption System to report on progress of the Action Plan.
		2.3.5. Mexico City’s Council for Evaluation of Social Development could be charged with developing the evaluation methodology of the impact of the Local Anti-corruption System, so that the Co-ordination Committee can draft binding recommendations for ...
	Proposals for action
		Developing a strategic approach to public integrity
		Monitoring and evaluation
	References
		Annex 2.A. Developing a measurement methodology for concrete policy goals
Chapter 3.  Building a culture of integrity in Mexico City
	3.1. Introduction
	3.2. Building a normative framework to shift towards a values-based approach
		3.2.1. Mexico City could consider streamlining its ethics rules and issuing a single, comprehensive Ethics Code to promote integrity and management of conflicts of interest.
		3.2.2. In drafting its future Ethics Code, Mexico City should use plain language to communicate clearly the behaviour expected of all public officials.
		3.2.3. Mexico City could also streamline its conflict of interest rules.
		3.2.4. Mexico City could consider updating the existing organisational code.
		3.2.5. Mexico City could consider developing special standards for such risk areas as law enforcement, political advisers and procurement officials
		3.2.6.  Mexico City could set out clear instructions describing the penalties for failing to abide by the integrity rules.
	3.3. Building a strong institutional framework for public ethics and conflicts of interest
		3.3.1. To ensure coherence in developing conflict of interest and ethics policies, Mexico City should designate a unit in the Office of the Comptroller.
		3.3.2. Mexico City could establish Ethics Units in its 21 ministries to provide coherent, timely advice on integrity.
		3.3.3. Strategic human resources management could reinforce integrity initiatives in Mexico City’s public administration, to help restore public trust.
		3.3.4. The Integral and Preventing Evaluation (EPI) could help ensure that public service integrity values are mainstreamed in human resources management.
	3.4. Strengthening integrity culture in Mexico City by raising public servants’ awareness of ethics and conflicts of interest
		3.4.1. Mexico City could initiate an awareness-raising campaign co-ordinated by the proposed Ethics Unit, Integrity Contact Points (or persons), human resources representatives of public organisations.
		3.4.2. Ethics Units could be created at the Office of the Comptroller implement raising awareness training programmes based on the results of a survey on training needs and such trainings be offered in an annual basis tailored to each public organisat...
		3.4.3. Mexico City could consider using e-learning tools to raise awareness of the new ethics framework and help public servants identify and resolve conflicts of interest and ethics dilemmas
		3.4.4. Mexico City could also consider experimenting with mechanisms based on insights from research in behavioural sciences, and consider scaling up successful interventions to build a strong integrity culture.
	3.5. Public declarations could be used as a tool to prevent corruption and increase trust in Mexico City entities and government decision making.
		3.5.1. Mexico City’s current assets disclosure system could be limited to those in senior positions or occupying positions at high risk of corruption.
		3.5.2. Mexico City could consider adopting an integrity policy that recognises other situations that could lead to an integrity breach.
		3.5.3. Failure to comply with the obligation to disclose assets and interest should be actively punished, to guarantee public servants’ adherence to the Local Anti-corruption System.
	3.6. Ensuring effective monitoring and evaluation of integrity policies in Mexico City to promote high standards of conduct across its public organisations
		3.6.1. Surveys, reviews of the guidance provided for the new Ethics Code and statistical data on penalties imposed could enhance monitoring and evaluation.
		3.6.2. To monitor Mexico City’s future Ethics Code, the Executive Commission could publish clear and transparent indicators based on data collected by the General Co-ordination for Administrative Modernisation.
	Proposals for action
		Building a normative framework to shift towards a values-based approach in Mexico City
		Building a strong institutional framework for public ethics and conflict of interest to ensure coherence in the development and maintenance of integrity policies, training and enforcement of these rules throughout the whole Mexico City administration.
		Building a strong integrity culture in Mexico City’s public entities by raising awareness of ethics and conflict of interest issues among its public servants.
		Maximising the use of the three public declarations as a tool for reducing corruption and enhancing trust in Mexico City entities and government decision-making processes:
		Effective monitoring and evaluation of integrity policies could help promote high standards of conduct across Mexico City’s public organisations.
	Note
	References
Chapter 4.  Creating an open organisational culture in the public sector in Mexico City
	4.1. Introduction
	4.2. Encouraging an open organisational culture
		4.2.1. To ensure that senior management act as role models, integrity could be included as a performance indicator to incentivise the application of the Code of Ethics.
		4.2.2. To encourage public officials to voice their concerns about integrity, the Comptroller’s Office could engage senior public officials to provide guidance, advice and counsel.
		4.2.3. Staff champions for openness could consult with staff on improving employee well-being, work processes and openness in order to empower and engage them.
		4.2.4. A mentoring programme for junior public officials could guide and support employees and create an ethical management cadre.
	4.3. Instituting a legal framework to encourage reporting and to guarantee protection for whistle-blowers
		4.3.1. Mexico City could enact a dedicated whistle-blower protection law to avoid duplication, ensure clarity of the kind of protections applicable and to ultimately create higher confidence in the protection framework.
		4.3.2. The distinction between witness and whistle-blower protection should be clearly delineated, to ensure that disclosures that do not lead to a full investigation or to prosecution are eligible for legal protection.
		4.3.3. Mexico City could consider specifically prohibiting the dismissal of whistle-blowers without a cause, or any other kind of formal or informal work-related penalty in response to the disclosure.
		4.3.4. By explicitly including civil remedies for public officials who suffer reprisals after disclosing misconduct, Mexico City could add another layer of protection to the whistle-blower protection framework.
		4.3.5. Mexico City could consider shifting the burden of proof to the employer to present evidence that any penalty exercised against a whistle-blower is not related to the actual or potential disclosure.
	4.4. Ensuring effective review and investigation of reports
		4.4.1. To increase trust in the whistle-blower protection framework, Mexico City could create an independent agency to receive and investigate reports on misconduct.
	4.5. Strengthening awareness
		4.5.1. An intensive communication strategy, within government entities and in society at large, could increase the knowledge of the reporting channels and protections available.
	4.6. Conducting evaluations and increasing the use of metrics
		4.6.1. Regular staff climate surveys could assess the effectiveness of the measures taken to promote an open organisational culture
		4.6.2. Mandating a periodic review of whistle-blower protection legislation could assess the implementation, effectiveness and relevance of the legislation.
		4.6.3. To evaluate the effectiveness of the whistle-blower framework, Mexico City could consider systematically collecting data and establishing robust indicators.
	Proposals for action
		Encouraging an open organisational culture
		The right legal framework can encourage reporting and guarantee protection for whistle-blowers.
		Ensuring effective review and investigation of reports
		Strengthening awareness
		Conducting evaluations and increasing the use of metrics
	References
Chapter 5.  Cultivating a culture of public integrity: A challenge for  Mexico City
	5.1. Introduction
	5.2. Instilling a shared sense of responsibility for integrity in society
		5.2.1. Encouraging a sense of shared responsibility for integrity in Mexico City among citizens and the private sector in public awareness campaigns.
		5.2.2. Mexico City’s experience working with civil society organisations could be leveraged to include the whole society approach as part of the Local Anti-corruption System.
		5.2.3. Public campaigns need to be complemented by training programmes for citizens, focusing on areas susceptible to fraud or corruption, and the clear assignment of responsibilities to the relevant ministries.
		5.2.4. Mexico City could consider influencing citizens and private sector firms to act with integrity in interaction with public entities by piloting initiatives on behavioural science research.
	5.3. Educating the new generation to take a stand against corruption
		5.3.1. The SLAC-CDMX Co-ordination Committee could include in its action plan a recommendation to develop content and didactic tools for ethics education.
		5.3.2. Mexico City could consider increasing resources for extracurricular activities and programmes to include content that explicitly addresses integrity and anti-corruption.
		5.3.3. The Office of the Comptroller could recommend to the Co-ordination Committee that the Ministry of Education develop training programmes for teachers on integrity and anti-corruption.
	Proposals for action
		Instilling a shared sense of responsibility on integrity in society
		Educating the new generation to combat corruption
	References
Chapter 6.  Improving internal control and risk management in Mexico City
	6.1. Introduction
	6.2. Establishing an effective internal control framework in Mexico City
		6.2.1. Mexico City could draft a strategy for communications and capacity building to publicise the new guidelines for internal control, audits and interventions in public administration.
	6.3. Adopting the “three lines of defence” model
		6.3.1. Mexico City could apply the principles of the “three lines of defence” model in refining the internal control framework.
	6.4. Establishing internal control measures
		6.4.1. Mexico City could create a system of accountability for procedural manuals to ensure they are consistent, regularly updated and reflect efficient procedures.
	6.5. Refining the role of Internal Control Units and strengthening the independence of the Comptroller-General
		6.5.1. Mexico City could clearly separate the lines of defence, with senior management, rather than internal auditors, charged with implementing risk management and designing and implementing internal controls.
		6.5.2. Given Comptroller-General Guidelines require that the audit programme be based on priorities and a risk assessment, Mexico City could develop and implement a risk-based approach to internal audit topic selection.
		6.5.3. Mexico City could strengthen mechanisms for internal control units to monitor implementation of audit recommendations.
		6.5.4. Mexico City could revise the audit planning process for the Comptroller-General to help increase its independence from the government.
	6.6. Implementing a risk management framework
		6.6.1. Mexico City could implement a systematic risk management framework to strengthen the internal control framework.
		6.6.2. Mexico City could set up the risk management framework by assigning clear responsibility for managing risk to senior managers, providing risk management training for staff and updating risk management systems, tools and processes.
	6.7. Reinforcing the professionalism of internal auditors
		6.7.1. Mexico City could provide further training on ethics and integrity for internal auditors.
	Proposals for action
		Establishing an effective internal control framework
		Adopting the “three lines of defence” model
		Establishing internal control measures
		Refining the role of Internal Control Units and strengthening the independence of the Comptroller-General
		Implementing a risk management framework
		Reinforcing the professionalism of internal auditors
	References
		Annex 6.A. Mexico City’s Standards and Guidelines for Internal Audit and Control
Chapter 7.  Enhancing integrity in public procurement in Mexico City
	7.1. Introduction
	7.2. Enhancing transparency and access to information on public procurement processes and activities
		7.2.1. Enhancing the access to procurement opportunities and the efficiency of the system by reducing the use of exceptions to open and competitive tendering.
		7.2.2. Improving the monitoring of exceptions to competitive tenders.
		7.2.3. Encouraging the digitalisation of the procurement system by developing a comprehensive e-procurement system.
		7.2.4. Mexico City could benefit from implementing and enhancing electronic tools such as electronic price catalogues and suppliers’ registries.
		7.2.5. Enforcing the provisions of the Transparency Law to access procurement information.
		7.2.6. Encouraging the use of the open contracting portal by all contracting authorities
		7.2.7. Extending deadlines for economic operators to submit their bids.
		7.2.8. Introducing pre-publication for tender documents, to enhance competition and the integrity of the system.
	7.3. Preserving integrity and promoting a culture of integrity among public procurement officials, potential suppliers and civil society
		7.3.1. Developing a tailored anti-corruption strategy for public procurement.
		7.3.2. Encouraging integrity among procurement officials through tailored training programmes and developing a clear integrity capacity strategy.
		7.3.3. Promoting transparency and a merit-based approach to hiring, and generalising use of the EPI to all the city’s procurement officials.
		7.3.4. Raising awareness in the private sector about the risk of corruption.
	7.4. Encouraging public integrity through an effective management of conflict of interest in the procurement process
		7.4.1. Complementing the general Code of Ethics with a specific code of conduct/code of ethics for procurement officials
		7.4.2. Generalising conflict of interest policies to all officials working on public procurement and monitoring them effectively.
	7.5. Strengthening the accountability, control and risk management system for public procurement processes
		7.5.1. Strengthening the review system by introducing alternative mechanisms and enhancing the system’s transparency.
		7.5.2. Updating procedure manuals and enhancing the capacity of officials in charge of controlling public procurement activities.
		7.5.3. Publishing reports of citizen comptrollers to add transparency to the public procurement system
		7.5.4. Providing officials from the Office of the Comptroller-General and Citizen Comptrollers documents and sharing information on the related procurement events they should attend in advance.
		7.5.5. Implementing performance audit by developing indicators.
		7.5.6. A risk-mapping strategy could enhance the efficiency and integrity of the procurement process
		7.5.7. Ensuring a system of effective and enforceable sanctions for procurement officials.
		7.5.8. Enhancing the management of punished and blacklisted suppliers
	Proposals for action
		Enhancing transparency and access to information on public procurement processes and activities
		Preserving integrity and promoting a culture of integrity among public procurement officials, potential suppliers and civil society
		Encouraging public integrity through an effective management of conflict of interest in the procurement process
		Strengthening the accountability, control and risk management system for public procurement
	Further reading
	References