Responding to the risks of corruption and to peace posed by defence deals being discussed at an Oslo conference this week, Transparency International Director of International Engagement Sara Bandali said:
Scores of arms manufacturers and brokers have descended on Norway this week to discuss a controversial aspect of the global arms trade: defence companies’ side agreements with governments to win major weapons contracts (offsets). Norway, the UK, and other European countries are rapidly updating their defence offsets or industrial cooperation policies to strengthen European weapon supply chains and support Ukraine.
While we understand the push to strengthen European defence capabilities, the increased use of defence offsets presents significant corruption risks with policies that are overly flexible and lack critical transparency and government oversight. Defence companies, brokers, or government officials have used defence offsets as a key vehicle for bribes, which have resulted in the purchase of faulty or inappropriate equipment or the embezzlement of government funds.
Transparency International Defence and Security is concerned about these trends. We encourage government officials and defence companies attending the conference to discuss ways to encourage more transparency and effective oversight of defence offsets to help prevent corruption and its adverse effects on peace and stability.
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