Mon 11 Jun 18 // Industry Integrity

Dear Director

Ensuring any enforcement action against Airbus meets fair justice standards

We are writing as concerned anti-corruption organisations that have seen the effect of corporate bribery on democracy, good governance, economic progress and security across the world.

We are aware of extensive media coverage about allegations of bribery involving Airbus. The allegations are egregious. They span over a decade and include at least 14 countries including Sri Lanka, Kazakhstan, Austria, Tunisia, India, Poland, China, Greece, Saudi Arabia, Turkey, Indonesia, Kuwait, Mauritius and Mali as well as implicating all business segments within Airbus, including aerospace and defence, commercial aerospace and helicopters. The media coverage has indicated that the SFO, PNF and DOJ are all investigating alleged wrongdoing. Other authorities around the world are also investigating these allegations, including in Austria, Kuwait, Poland and Sri Lanka.

We welcome the fact that the SFO and the PNF have set up a joint investigation team in this case with close coordination with the DOJ. The co-ordination of law enforcement activities in such cross-border and global alleged wrongdoing is essential. It helps to maximise use of law enforcement resources and ensure that investigators and prosecutors are aware of the full facts of potential wrongdoing when making enforcement decisions.

We are writing to ask you to ensure that any enforcement action against Airbus, whether a settlement or other form of action, meets standards that would ensure justice is achieved and that the harm caused by any wrongdoing is properly assessed and compensated for. We would encourage you to give careful consideration to the full range of enforcement options available, including prosecution. In particular, we ask you to ensure that:

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TI Defence & Security


Fri 13 Apr 18 // Industry Integrity

Transparency International Defence & Security would like to announce the initial phase of the 2019 edition of the Defence Companies Anti-Corruption Index (DCI).

What is the Defence Companies Anti-Corruption Index (DCI)?

The purpose of the Index is to set the standard for transparency in the defence sector and to explore what companies are publicly committing to in terms of anti-corruption. The Index has a global reach and will assess 143 defence companies across 35 countries. The index was first published in 2012 with a second edition in 2015, and the latest edition is set to be published in 2019.

The upcoming index will apply a revised methodology and will include some key differences from previous editions.

A copy of the 2015 edition can be found here.

 

How will the 2019 Index be different?

Based on feedback from a range of users and advice from anti-bribery experts, the methodology for the 2019 edition of the Index has been reviewed and re-designed. The new methodology will shift the emphasis of the index from a tool which has previously focused on compliance, to ensure that it accounts for a wider range of risks. Full details of modifications will be made available to companies shortly.

Unlike the 2015 version, this edition of the Index will assess companies through publicly available information only. The decision to exclude internal information from the evaluation reflects our increased focus on transparency, public disclosure of information, incident response and the practical implementation of anti-bribery and corruption programmes.

 

How have companies been selected?

Companies included in the index will be contacted directly in due course. At present, our selection criteria is based on the fact that:

  • The company features in the 2016 edition of SIPRI’s Top 100 defence companies.
  • The company features in the 2016 edition of Defence Industry Weekly’s Top 100 defence companies.
  • The company is the largest national defence company headquartered in a country exporting at least £10 million, as identified by SIPRI.

 

How will data on companies be collected?

Our assessment of a company’s individual anti-bribery and corruption record is based entirely on publicly available information. In particular, we will review the company’s website, including any available reports, for evidence of robust anti-corruption systems, as well as any functioning hyperlinks to other relevant online materials. In reviewing your company’s materials, we will assess the completeness and accessibility of the information, in particular:

  • The amount of information a company publishes about its internal anti-corruption programmes, incident response systems and interactions with third parties;
  • Evidence that these systems are used by employees and made available to all employees;
  • Evidence that the company monitors and reviews its anti-bribery and corruption processes.

 

Research for the Index will be conducted by a team of analysts within the Defence and Security team at TI. Once we have assessed your company, we will notify you of our preliminary findings and provide you with a period of time to bring any additional supporting material to our attention.

 

Where can I find the assessment criteria?

The updated assessment criteria will be made available on this website shortly.

 

What is the timeline for the Index?

We will send the information formally announcing the next edition of the Index to companies in June – July 2018. This will include further details regarding the process, timelines, and methodology.

We will be holding a consultation period over the coming months to allow companies to give feedback and ask questions about the upcoming Index. For those seeking further information after this period, we will also host online webinars. Further details will be announced in due course.

Research for the assessments is planned to commence in the Autumn and will last until the end of 2018. Initial results will be shared with companies so that they have the opportunity to implement new processes or make more information publicly available. The results of the index will be published in the second quarter of 2019.

 

What do companies have to do next?

We will write to companies included in the 2019 Index shortly. In the meantime, companies don’t have to actively do anything.

 

Will we have an opportunity to give feedback on the methodology before the assessments start?

Yes – companies may offer feedback and comments about the methodology to TI using one of the following opportunities:

  • Take part in one of the online webinars (dates to be announced)
  • Email the team at: dci@transparency.org

Feedback is welcome from all users of the index including governments, civil society, journalists and companies.

Please enter your details here if you would like to nominate yourself as a point of contact for your company

First Name:
Last Name:
Company:
Job Title:
Telephone Number:
E-Mail Address:
I agree to Transparency International Defence & Security using the details provided to contact me about the index.

TI Defence & Security


 20th March 2018, London – The re-opening of corruption charges against former South African President  Jacob Zuma, relating to a 1999 arms deal, are a welcome step and should mark the beginning of justice finally being served, according to Transparency International Defence & Security.

Research from Corruption Watch UK into the scandal known as the ‘Arms Deal’ suggests billions of taxpayers money was squandered – at a time when the South African government claimed that there were insufficient funds to treat thousands of citizens for AIDS.

Andrew Watson, Head of Industry Integrity at Transparency International Defence & Security, said:

“We warmly welcome the news that Jacob Zuma may now finally face justice for his crimes. It’s a shame that these charges took him to leave office for a prosecution to take place – but it is encouraging that his crimes may now finally be catching up with him.”

“Jacob Zuma and the companies alleged to have paid bribes to him have escaped justice for many years. These charges must now finally shed some light on one of the largest defence corruption scandals ever seen and result in robust prison sentences for those found to have been involved.”

***ENDS***

Contact:

Dominic Kavakeb
020 3096 7695
079 6456 0340
dominic.kavakeb@transparency.org.uk

TI Defence & Security


Fri 19 Jan 18 // Industry Integrity

19th January 2018, London – Commenting on an announcement by the Serious Fraud Office that it is investigating Chemring Group PLC, a British Defence Company, for corruption, money laundering and bribery, Andrew Watson, Head of Industry Integrity at Transparency International Defence and Security, said:

“It is disappointing to see another British defence company facing fresh allegations of systemic and widespread corruption, highlighting the very real challenges facing this unique sector.”

“Once again, intermediaries – long established as one of the highest corruption risks in defence commerce – are at the heart of these allegations.”

“Whilst it is encouraging that the company reportedly discovered the allegations themselves during an internal audit and that it was then self-reported to the SFO, we call for the company to fully cooperate with investigators and conduct an internal review of its anti-bribery procedures to discover what went wrong and why it wasn’t discovered before now. It’s vital that this investigation is thorough and perpetrators are brought to justice, no matter how high-up in the company they may be.”

Chemring scored a C in the Transparency Internationals most recent Defence Companies Anti-Corruption Index, meaning there is “moderate evidence” that they have anti-corruption measures.

Transparency International’s 2016 report “License to Bribe” identified the significant risks in the use of third parties and agents in arms deals, one area reported to be the subject of this investigation.

***ENDS***

Contact:

Dominic Kavakeb
020 3096 7695
079 6456 0340
dominic.kavakeb@transparency.org.uk

TI Defence & Security


Fri 22 Sep 17 // Industry Integrity

 23rd September 2017, London – Transparency International Defence and Security welcomes the pledge by Heckler & Koch to no longer sell arms to corrupt states, and calls on the wider defence industry to make similar commitments.

The German firm has announced that it will use Transparency International corruption assessments as one of three indicators to decide which states to sell weapons to, in what is believed to be an industry first. Heckler & Koch should now publicly announce the exact criteria of this move, as well as which countries this will apply to, ensuring full transparency and accountability.

Transparency International’s research has found that selling arms to corrupt states can perpetuate conflict and lead to deadly weapons falling into the wrong hands. This can fuel violent conflict and terrorism, with repercussions both domestically and internationally.

Transparency International’s most recent “Government Defence Anti-Corruption Index” found 70% of states assessed for risk of defence corruption are either at high, very high or critical risk. Defence spending is growing fastest in states at the highest risks of defence corruption with real implications for human suffering.

Katherine Dixon, Director Transparency International Defence and Security, said:

“If implemented fully, this is a welcome pledge from Heckler & Koch. This sort of due diligence should be the norm for defence companies. But it’s important that this commitment is more than just a PR exercise. The best way to ensure this is to provide full transparency over the criteria and which companies they will no longer sell to.” 

“It should be difficult for any responsible defence company or State to justify exporting to countries which don’t implement the minimum transparency and accountability mechanisms to achieve at least a D on TI’s defence anti-corruption index.  Introducing lethal weapons into unaccountable and corrupt environments is a recipe for disaster. Defence companies and the governments that license their exports have the power and responsibility to make a difference in these states and reduce human suffering; we encourage them to use it’.” 

***ENDS***

Contact:
Dominic Kavakeb
Dominic.kavakeb@transparency.org.uk
0044 20 3096 7695
0044 796 456 0340

TI Defence & Security


The world’s major arms exporters have a conflicted approach when it comes to dealing with what are effectively kleptocratic governments.

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TI Defence & Security


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Mon 20 Feb 17 // Industry Integrity

This blog was orginally published by New America and can be accessed here

These are banner times for corruption watchdogs pushing for transparency. From Congress’s recent repeal of the bi-partisan Lugar-Cardin provision—which would’ve required oil, gas, and mining companies registered with the SEC to disclose payments to foreign governments—to the ongoing controversy involving veteran intelligence officer Michael Flynn and Russia’s ambassador to the United States, transparency and security have never seemed more impossibly intertwined—or at stake.

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TI Defence & Security


Eva Anderson, our Senior Legal Officer and Barrister discusses issues around debarment

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TI Defence & Security


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Following the Rolls-Royce DPA, Andy Watson, Head of Industry Integrity, asks who are the real victims in a big corruption case like this?

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TI Defence & Security


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Katherine Dixon, Director Defence and Security Programme, considers whether some defence companies are too important to be prosecuted

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