building integrity & reducing corruption defence procurement & parliamentary oversight leah...
TRANSCRIPT
BUILDING INTEGRITY & REDUCING CORRUPTION
Defence procurement & Parliamentary oversight
Leah WawroTransparency International UK Defence & Security
Programme
WHAT WE DO
Our vision is a world where Defence Ministries, Security Ministries, Armed Forces, Security Forces and arms transfers are transparent, accountable and free from corruption.
Defence Ministries & Armed Forces; police and
security forces
Defence companies& industry associations
Civil society & media
Research Tools and training
Others: parliamentarians, intl. organisations
IMPACT
DANGEROUS Corruption undermines military effectiveness.Poor equipment risks the lives of troops.
DIVISIVE Corruption destroys citizens’ trust in government and the armed forces.
WASTEFUL The defence sector is worth $1.7 trillion a year. The waste from corruption is in billions of dollars.
Why does corruption matter- a citizen’s perspective
IMPACT
Defence officials tell us that corruption:
• Wastes scarce resources
• Hurts operational effectiveness
• Diminishes public trust
Corruption is a strategic issue for defence & security forces.
Why does it matter to the military and defence officials?
HOW DOES CORRUPTION HAPPEN IN DEFENCE MINISTRIES & ARMED FORCES?
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
Intelligence Services Control Values and Standards Finance Packaging
Export Controls Small Bribes Offsets
FINANCE OPERATIONS Contract Award & Delivery
Asset Disposals Disregard of Corruption In-Country Subcontractors
Secret Budgets Corruption Within Mission Seller Influence
Military-owned Businesses Contracting
Illegal Private Enterprises Private Security Companies
GOVERNMENT DEFENCE ANTI-CORRUPTION INDEX 2013
• Assesses vulnerability to corruption• 5 key areas: political, personnel, operations,
financial, procurement• Tool to help guide reform• Independent assessment with MOD input
RESULTS: EUROPE & CENTRAL ASIA
GI FINDINGS: CROATIA
CROATIA: BAND C
66% 53% 63% 45% 31% POLITICAL FINANCIAL PERSONNEL OPERATIONS PROCUREMENT
+ Parliamentary Defence Committee generally transparent+ No evidence of off-budget expenditure, contingency funds small+ Well-established payment system
- Defence budget lacks detail; limited time to review prevents strong parliamentary scrutiny
- Lack of transparency in Military-owned businesses - No provisions to protect and encourage whistleblowing in defence sector- Procurement legislation has exemptions for defence and intelligence- Low levels of competitive, open bidding
PROCUREMENT: GOOD PRACTICE
Good Practice• Transparent, detailed procurement process available to public• Procurement based on well-defined defence strategy• Controls on tender boards • Competitive procurement: single-sourcing approx.10% or less• Transparency and due dilligence in offsets• High standards for companies• Control of agents and brokers• Controls on sub-contractors and subsidiaries• Anti-collusion mechanisms
GOOD PRACTICE EXAMPLES: PROCUREMENT
Brazil• Agents and brokers banned• Procurement is generally competitive, not single-sourced• By law, financing package must be published before
contract is signed
Poland• Transparency in full procurement cycle; • Details of tender proceedings available online• Transparency for both competitive and single-sourced
procurement• Clarity in asset disposals, including what funding received
goes to
Greece• Following scandals, Greece plans to phase out offsets by
end 2014• Ongoing offset contract subject to extensive due diligence
through State Audit Council
Potential tool: Defence Integrity Pacts
• Independent Monitor
• Technical support team: local and international
• Timescale: from procurement announcement to end; include offsets
• Funding: directly by government; regional fund; clause in contract
PARLIAMENTARY OVERSIGHT
Good practice:• Defence committee with strong powers of scrutiny over budget• Scrutiny of acquisition planning, defence procurement; no items exempt • Access to audit reports• Parliamentary committee
provided with extensive information on secret items; line-item description of expenditures and audits
• Power to scrutinise and oversee intelligence services
• Disclosure of past and future purchases
GOOD PRACTICE EXAMPLES: PARLIAMENTARY OVERSIGHT
Australia• Joint Standing Committee
on Foreign Affairs, Defence & Trade can call witnesses and have full access to relevant documents. This may be at the call of Ministers or the Legislature.
• Committee can ask government decision-makers to publicly justify rationale for defence spending
• “AusTender” website has extensive detail on plans, contracts awarded
South Korea• Tiered system for balancing
security and budget transparency. Three categories:
A. Budget items presented in full to entire national assembly;
B. Disaggregated items available without restriction to members of defence committee only;
C. Disaggregated items revealed to defence committee only with some restrictions
• Proposed and final budget available online
Potential tool: Defence Expert Consulting Group
• Challenge: technical complexity of defence
• Group of experts from diverse backgrounds.
• Source of expertise, assist parliamentarians.
• Independent of the military (though may include retired military personnel).
• Well-respected group member will help raise public awareness and support.
WHAT CAN BE DONE?
.
1. Engage leadership, build confidence2. Analyse and understand the risks3. Use good diagnostic tools, surveys and
metrics4. Develop a counter-corruption plan5. Training on counter-corruption6. Clear Codes of Conduct7. Procurement reforms; use of monitors8. Engage media, civil society9. Work with defence and security contractors10. Establish an anti-corruption Director & unit
