INSABI Breaks Supply Agreement With UNOPS

The United Nations Office for Project Services (UNOPS) announced that it met with associations and CANIFARMA regarding the cooperation agreement with Mexico regarding medicine and health materials supply. The office informed on INSABI’s decision to not activate the Long-Term Agreements for the purchase of medicine for 2023. 

UNOPS reported that it has delivered 35 million doses of medicines, supplies and medical devices to INSABI in its designated storage units in Mexico City, which are responsible for distribution to the rest of the country. The office still expects the purchase of 40 million pieces for October 2022. 

The organization highlighted that it consolidated a strong payment mechanism to distributors with 97 percent of the invoicing coming on time, creating certainty and trust. It also managed to pay suppliers 45 days below the contractual terms. Regarding the Long-Term Agreements, UNOPS announced that under INSABI’s request, the agreements would not be activated.

Last week, the UN recognized UNOPS with an award for the Procurement of Medicine/Medical Supplies in Mexico project. According to the UN Procurement Network (UN-PN), the project resulted in benefits of more than MX$10 billion (US$501 million). UN-PN’s decision was received with criticism, however. “Neither the government nor UNOPS were aware of the complexity in the medicine procurement system,” said Andrés Castañeda, Health and Wellness Coordinator, Nostrxs to Impunity Observer.

In early October, Juan Ferrer, INSABI‘s Director, announced at the Chamber of Deputies that INSABI would no longer require UNOPS’ services. “Why? Because today we have the full support of the Ministry of Finance, the Ministry of Public Administration, the organization of IMSS, ISSSTE, the Ministry of National Defense, the Navy and the 32 states,” said Ferrer. 

Even though the Ministry of Defense was originally designated by López Obrador as the body in charge of medicine distribution, Ferrer pointed at Birmax as the company that will take over this process.  “We are working on improving distribution so medicines reach the patients. We need medicines to leave warehouses and to not stay in the hands of those that do not need them … Birmex will be the one responsible for the national distribution system,” highlighted Ferrer before the Chamber of Deputies, according to a report from Expansión.