Tackling Corruption in Defence The TI Defence and

Tackling Corruption in Defence The TI Defence and Security Programme Anne-Christine Wegener 2 October 2012 OSF strategy meeting: Combating and Preventing Corruption in Medicine Procurement What can Civil Society Do?

How big a problem? 2

Characteristics of corruption in defence • Close relation between governments and industry • A few companies from 10 countries make 90% of international arms sales • USD 500 billion defence revenue annually • Few exporting countries, many importing countries • Political involvement is extensive Corruption risks: • Huge contracts • Secrecy • Technical areas: agents, offsets Situation in 2004 • Defence corruption not on the agenda of companies and governments • No scrutiny bodies • Little NGO engagement

TI-DSP Approach Outside: Inside: • • Facilitate leadership discussion Reframe the problem Analysis/action plan Training • • Research External oversight Work with IGOs (NATO, UN) Public Surveys National defence & security forces Defence Industry • • Direct engagement Measure performance (Index) Establish global forum for a-c standards Research, publicise high risk areas Civil Society incl media • Collaborate on research • Build and share expertise • Build confidence that defence corruption can be tackled

Mapping the risks POLITICAL PERSONNEL PROCUREMENT Defence & security policy Leadership Behaviour Technical requirements / specifications Defence budgets Payroll, promotions, appointments, rewards Single sourcing Nexus of defence & national assets Conscription Agents/brokers Organised crime Salary chain Collusive bidders Control of intelligence services Values & Standards Export controls Small Bribes FINANCE OPERATIONS Financing packages Offsets Contract award, delivery Subcontractors Asset disposals Secret budgets Military-owned businesses Illegal private enterprises Disregard of corruption in country Corruption within mission Breaking Seller influence the corruption risks into smaller, more concrete areas has Contracts helped us explain the issue and build Private Security Companies confidence that it can be tackled, as well as demonstrating expertise 5

Building integrity - training Leadership days bring the top management of a ministry of defence and/or the armed forces together to discuss what defence corruption is and how to build integrity Leadership day in Kabul, Nov 2009 A training course helps build up knowledge and momentum for tackling corruption. It is seen as a constructive tool even for less reform-minded governments

Research, especially when done collaboratively with others or involving the industry or government brings in-depth knowledge and enables us to constructively engage with governments; often done with research interns or externals; 7

Measuring defence corruption – example: Government Index Creating a tool to measure corruption enables comparison over time and give feedback to governments who want to know how they perform. It also serves as an advocacy tool for civil society organisations pushing for change. We have done each for the supply and demand side What is our Government Index? • A global Index to measure levels of corruption risk in national defence and security establishments worldwide (note: we have a sister index for companies, too) • Comparison between 83 countries • A means to monitor the success of anti-corruption mechanisms over time

Civil society having an impact Media helps carrying our message to the public and policymakers Our overall “philosophy” 1. Engage directly 2. Have deep expertise in the team, e. g. part-time senior people 3. Develop practical tools 4. Constructive and critical is effective

Thank you anne-christine. wegener@transparency. org. uk Twitter: @Tidefenceteam Facebook: TI Defence www. ti-defence. org