Tue 19 Jun 18 // Uncategorised

19th June 2018, Kiev – The Independent Defence Anti-Corruption Committee (NAKO) announced on June 19th that it is in favour of the revised tender for an independent audit and strategic analysis of Ukroboronprom. It has reestablished dialogue with Ukroboronprom and intends to monitor the tendering process.

NAKO said that the process is the opportunity to bring light to inefficiencies, corruption risks and structural deficits at Ukroboronprom and will be a first step towards resolving these issues and building a state-owned defence establishment that meets the needs of the public and armed forces. The NAKO committee stated that the creation of the independent Supervisory Board, which was appointed by President Petro Poroshenko this January, was a key step towards having effective governance and will be the main customer in the upcoming tender.

Volodymyr Ohryzko, NAKO Co-Chair, stated:

The Supervisory Board of Ukroboronprom is responsible for reforming the institution so that it meets the interests of the public and the Ukrainian state. This audit, in line with international standards, will aid the Supervisory Board in carrying out their responsibility and raising the company to meet international standards of governance.

The call for tender includes three parts: 1) an assessment of the corporate governance of Ukroboronprom and its members, 2) a legal review, diagnosis and consultation of Ukroboronprom and its member companies, 3) an independent financial audit of Ukroboronprom and its member companies.

The original tender did not include some of these components, including the independent financial audit. The NAKO provided recommendations to Ukroboronprom’s Supervisory Board about what should be included in the tender, and the Supervisory Board revised it in line with these recommendations. Following those amendments, the tender process is currently underway. The deadline has been extended from June 18th to September 28th in order to give a broader range of companies the opportunity to bid.

Drago Kos, NAKO Co-Chair said:

We hope to see a strong pool of auditing firms bidding for this. It is undoubtedly complex – but if it can be reformed, the impact on Ukraine and its future will be historic.

Olena Tregub, NAKO Secretary General confirmed that:

The NAKO continues to monitor this tender; our aim is to ensure that the reform of Ukroboronprom is provided with clear advice on the corporate structure and management, and that a full financial audit will identify financial black holes in the company – and will facilitate an evidence-based reform programme.

More details on the tender can be found here.

***ENDS***

Notes:

The Independent Defence AntiCorruption Committee (NAKO) is a joint initiative to fight corruption in the Ukrainian defence sector run by Transparency International Defence and Security Program Great Britain (TI-DSP) and Transparency International Україна (ТІ Ukraine).

The Committee consists of six members: Editor in Chief of online mediaUkrayinska PravdaSevgil MusaievaBorovyk, Former Minister of Foreign Affairs of Ukraine, Former First Deputy Secretary Defence and Security Council of Ukraine Volodymyr Ogryzko, Chairman of Centre UA, coinitiator of Chesno Campaign Oleh Rybachuk, LieutenantGeneral of the British Army and Former Commander of the NATO Allied Rapid Reaction Corps Timothy Evans, Former AntiCorruption Commissioner in Slovenia Drago Kos and Former Head of Oversight of Public Utilities at the UN Mission in Kosovo James Wasserstrom.

The goal for the NAKO is to reduce corruption risks in defence and security sector of Ukraine by means of monitoring, evaluation and analysis of anti-corruption reforms and providing the corresponding recommendations.

Contact:

Dominic Kavakeb
+44 20 3096 7695
+44 79 6456 0340
Dominic.kavakeb@transparency.org.uk

 

TI Defence & Security


Mon 11 Jun 18 // Uncategorised

11th June 2018, London – Today, NGOs in France, Indonesia, Sri Lanka, Tunisia, the UK and the US are calling upon the agencies investigating Airbus to ensure that the company and its senior executives are properly held to account.

Airbus is under investigation in several jurisdictions for allegedly paying bribes in order to win billions of dollars of contracts. The allegations are egregious and widespread, covering multiple countries and involving several divisions within Airbus including commercial aircraft, helicopters and aerospace and defence.

In February 2018, Airbus reached a €81.25million settlement in Germany to end a corruption investigation into the 2003 Eurofighter deal with Austria. Over the coming months, prosecutors will be weighing up their options, with more settlements as one possible outcome, allowing the company to continue winning government contracts without prosecution.

Today the NGOs in a letter to the heads of the Serious Fraud Office, Parque National Financier and Department of Justice urged the authorities to ensure that:

  • National economic interest, relations with foreign states or the importance of Airbus as a national industry must not affect the investigation or prosecution of alleged bribery by the company;
  • Individuals responsible for the wrongdoing must face prosecution including those at senior levels;
  • No immunity deals should be included in any action taken against Airbus;
  • A settlement should only be given if prosecutors have high confidence that Airbus has fully cooperated and revealed the full extent of wrongdoing, and if it has fully signed up to genuine corporate change including through disciplining of employees responsible for wrongdoing;
  • Countries where it is proven that Airbus has paid bribes must be fully compensated for harm caused; and
  • Any enforcement action must be fully transparent with details of the wrongdoing made publicly available.

Susan Hawley, Director of Policy at Corruption Watch, said:

The Airbus case is a test of the resolve and independence of the prosecuting bodies and their ability to bring widespread and egregious wrongdoing to justice. Airbus and individuals implicated must not be let off lightly if these global allegations are confirmed by law enforcement investigations.”

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

“If proven, these extensive cases of corruption will have had a significant impact on the public, state institutions and the industry. With such wide-ranging and complex allegations, it will be will be vital for prosecutors to co-ordinate closely if they are to account for the full scale of alleged offending; because individual cases, serious as they may be, won’t tell the whole story.”

“For the punishment to be proportionate to the crime, prosecutors should consider the full range of offending across all jurisdictions when reaching their decisions.”

More [+]

TI Defence & Security


Fri 4 Aug 17 // Uncategorised

4th August 2017. The Ukrainian MoD’s Medical Department invited NGOs and volunteer organizations to help develop new technical requirements for individual first-aid kits used at the frontline of military operations. Experts from the Independent Anti-Corruption Committee on Defense (NAKO), a joint initiative of TI Ukraine and TI Defence & Security, took part in their development, providing input on how to reduce corruption risk. The MOD granted final approval for the technical requirements last week, and Ukrainian servicemen should receive their new first-aid kits this autumn.

The need to develop new technical requirements arose as military and volunteers repeatedly complained about the poor quality of individual first-aid kits (IFAKs) used at the front. Previous IFAK components had been approved in February 2015. However, the list of components for the first-aid kit was less comprehensive, and the standards lower, than those used in NATO countries. In addition, the IFAK technical requirements were often developed by the IFAK manufacturers themselves, meaning that they could shape the MOD’s procurement requirements to suit what they could provide. The new specifications allow the MoD to require manufacturers to ensure each component of the kit is of the highest standard of quality.

The MoD began work on creating new technical requirements for IFAKs in September 2016. Initially, the key stakeholders in the process were representatives of the Ministry of Defense and Ukrainian manufacturing companies, but this approach created significant corruption risks.

But in April 2017, the MOD changed its approach, creating a separate working group in order to minimise the influence of pharmaceutical companies and to avoid corruption risks. This new working group created by the Ministry of Defence included leading medical experts, NGO representatives and volunteer organisations, as well as NAKO experts. This group of experts have worked together alongside the MOD to improve the technical requirements of the first-aid kits to match the NATO standards.

We insisted on minimising corruption risks. Previously, there was a risk that the specifications would match the preferences of a particular manufacturer, rather than respond to real frontline needs,” said Taras Yemchura, a NAKO researcher. “This could also lead to discrimination against particular participants in the procurement process. For example, we pushed for the abolition of unlawful requirements for special markings on the product packaging, which does not actually affect the quality of the goods, but significantly reduces the range of potential suppliers.”

In the future, NAKO intends to continue monitoring the process of IFAK purchasing, scrutinising the formation of lots, bidding, contracting, and quality control.

The committee is convinced that the active participation of independent experts and high-quality public monitoring of each procurement stage will help counteract corruption risks in the procurement of first-aid kits, decrease the risk of poor-quality goods being supplied, and will help save the lives of soldiers who fight in the Donbass.

**ENDS**

Media contact:

Sevgil Musaeva

+38-050-217-1817

sevamusaeva@gmail.com

The Independent Defense AntiCorruption Committee (NAKO) is a joint initiative established by Ukrainian public activists, journalists and international experts to fight corruption in Ukraine’s security and defense sector. NAKO is a joint international project of Transparency International Defense & Security and Transparency International Ukraine, supported by the Ministry of Foreign Affairs of the Netherlands.

TI Defence & Security


Wed 24 Feb 16 // Uncategorised

The Defence Integrity Action Fund is a fund disbursed by Transparency International Defence and Security to support TI Chapters in their efforts to reduce defence and security corruption worldwide.

  • TI National Chapters and Chapters in Formation will be eligible to apply.
  • The grant size will range from EUR 5,000-20,000 and the project duration will be 3-12 months.
  • Complete projects, existing projects, or parts of projects through match funding can be funded.
  • All projects need to be directly relevant and contribute to the TI Defence and Security strategy, which specifies how sustainable progress in this particular area can be made based on extensive consultations, research, and lessons identified from more than 10 years of working on these issues.
  • Download the full specification here.

The deadline for grant applications is 14 March 2016. Please submit your proposals to amira.elsayed@transparency.org.uk.

Amira El Sayed
Network Lead


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