Corruption in Defence

Leah Wawro

26 November 2012

Agenda

1. Why it matters

2. The TI Defence & Security Programme

3. Defence Companies Anti-Corruption Index

4. Government Defence Anti-Corruption Index

Why defence & security corruption matters

Defence officials tell us that corruption:

• Wastes scarce resources

• Hurts operational effectiveness

• Diminishes public trust

Defence and security sectors are there to protect a country and its citizens. When the sector is corrupt, it can’t do that.

High risk:• Huge contracts• High secrecy• Unique corruption risks.

Impact on peacekeeping, conflicts

TI-DSP Approach

National defence & security forces

Civil SocietyDefence Industry

Inside: Facilitate discussionReframe the problemAnalysis/action planTraining

Build confidence that D&S can be tackledCollaborate on researchExpertise

Direct engagementIndexEstablish global forum for a-c standardsResearch, publicise high risk areas

Outside:Measuring and analysingExternal oversightWork with NATO, UN

Defence Companies Anti-Corruption Index

TI assessment

Company review and

input

TI analysis

Peer review

TI final review

External measure of extent and depth of anti-corruption capabilities and programmes—measuring capability

Aims: improve standards benchmark progress Competition

Based on Typology for good corporate anti-corruption system

A-F banding 35 Questions; 0-2 scoring

133 Companies Worldwide• Top 100 global defence

companies (2010 defence revenue, compiled by Defence News & SIPRI)

• Defence revenue of $100 M and a nationality not represented in top 100

Launch: October 4th

The Defence Companies Index

• The ability of companies to prevent and tackle corruption risk in the defence and security sector.

Government Defence Anti-Corruption Index

What is it?

• A global Index to measure levels of corruption risk in national defence and security establishments worldwide.

• A means to monitor the success of anti-corruption mechanisms over time

• Comparison between countries• A project that uses a wide range of input: from

National Chapters, Civil Society experts, Defence and Security sector experts, and governments themselves.

Methodology

• An objective questionnaire filled out by an expert independent assessor, reviewed by two independent peer reviewers, a government reviewer and finally a TI National Chapter reviewer.

• 76 questions, scored on a 5-point scale. Model answers guide assessor’s responses.

• Using of Global Integrity’s field research software, Indaba.

Assessor completes Questionnaire

Peer Review x 2 Government Review

TI National Chapters Review

Libel Review

Ongoing TI-DSP review and

standardisation throughout

process

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POLITICAL

Contracts

Secret budgets

Collusive bidders

Technical requirements / specifications

Single sourcing

Offsets

Disregard of corruption in country

Agents/brokers

Financing packages

PROCUREMENT

Values & Standards

Salary chain

Payroll, promotions, appointments, rewards

Conscription

PERSONNEL

OPERATIONS

Seller influence

Contract award, delivery

Asset disposals

Military-owned businesses

Illegal private enterprises Private Security Companies

Corruption within mission

Subcontractors

Leadership Behaviour

Small Bribes

FINANCE

Defence & security policy

Control of intelligence services

Export controls

Organised crime

Nexus of defence & national assets

Defence budgets

Typology of Defence Corruption Risks

GOVERNMENT DEFENCE INTEGRITY INDEX: QUESTION SCORECARD

Question Number:   Sources and References:   

SCORE GIVEN:

Score 4:  

Score 3:  

Score 2:  

Score 1:  

Score 0:  

N/A:  

Justification for score:   

Peer reviewer 1’s comments:

Peer reviewer 2’s comments: Govt. reviewer’s comments:

TI-NC’s comments: Final, standardised score:

  

 

Example Question:

Has the country signed up to international anti-corruption instruments such as, but not exclusively or necessarily, UNCAC and the OECD Convention?

Answer guidelines:4. The country has signed up to all relevant instruments, there has been formal ratification, and there is evidence of compliant activity.3. The country has signed up to all relevant instruments, but there is limited evidence of compliance (e.g. partial shortcomings in complying with specific parts of the conventions).2. The instruments have been signed up to and ratified; there has been no evidence of compliance.1. The country has signed up to but not ratified all relevant instruments0. The country has not signed up to the instruments.

Transparency International Defence & Security

Programme: Government Defence Anti-Corruption Index

Government Defence Anti-Corruption Index

Scoring:

1. A-F

2. Integrity scores for each major corruption risk, enabling understanding of where risks are most prevalent.

3. Regional scoring patterns and scores associated with country clusters – i.e. BRIC / N11; Big Spenders; Countries in Conflict.

Outputs

• An online scorecard for each question. • A country summary: Key findings, reform

recommendations.• An overall report: key learnings across the

entire index; also MENA-specific report.• Spin off research: articles covering

country-specific and regional analysis, methodological developments, and typology tests.

Advocacy• 50 TI National Chapters involved

in process—assessment or review

• Roadmap to Reform; specific, targeted actions

• National/ regional launches• Prompting engagement with

MOD: TI Taiwan

Asia Pacific: China, South Korea, Singapore, India, Thailand, Pakistan, Australia, Sri Lanka, Indonesia, Japan, Malaysia, Philippines, Bangladesh, Taiwan, Nepal, Afghanistan

Europe/Central Asia: Italy, Greece, UK, Germany, Spain, France, Norway, Austria, Czech Republic, Sweden, Cyprus, Turkey, Russia, Belarus, Poland, Bulgaria, Georgia, Ukraine, Kazakhstan, Serbia, Hungary, Uzbekistan, Croatia, Latvia, Bosnia, Slovakia, Israel

MENA: Iran, Saudi Arabia, Jordan, Syria, Egypt, Lebanon, Libya, Iraq, Morocco, Algeria, Bahrain, Qatar, Yemen, Kuwait, Tunisia, UAE, Oman, Palestinian National Authority

Sub-Saharan Africa: Angola, South Africa, Eritrea, Ethiopia, Nigeria, DRC, Zimbabwe, Uganda, Kenya, Rwanda, Tanzania, Cote d’Ivoire, Ghana, Somalia, Cameroon

Americas: Colombia, Brazil, Chile, Venezuela, Argentina, Mexico, USA

Countries: Government Defence Anti-Corruption Index

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Planned Publications, 2012-2013: Single Source ProcurementPolice ReformPolitical Economy & Expeditionary ContractingMilitary-Owned BusinessesToolkit for Civil SocietyDefence Corruption Literature Review

Research

Recent Publications: Single Source ProcurementPolice ReformPolitical Economy & Expeditionary ContractingMilitary-Owned BusinessesToolkit for Civil SocietyInternal audit and security corruption