Author: harveygavin
February 6, 2024 – A successful campaign in Ukraine for the publication of prices paid for non-lethal procurement by the country’s Ministry of Defence highlights how greater transparency can result in significant savings, Transparency International Defence & Security said today.
The Ukrainian Anti-Corruption Action Centre announced officials are now publishing the prices they pay for fuel. The campaigners said since the information had been made public, the Ministry of Defence is paying less than the average wholesale price for gasoline.
Josie Stewart, Head of Transparency International Defence & Security, said:
“This victory for anti-corruption activism illustrates how greater transparency can result in significant savings in procurement and underscores the pivotal role of informed citizens in fortifying integrity in defence and security.
“All too often defence and security matters are deemed beyond the reach of the transparency and accountability that govern other sectors. This case is a reminder that transparency is not just a principle to aspire to, it’s a practical tool that enhances the effectiveness and efficiency of military operations.”
Revelation highlights danger of collusion in arms procurement
February 2, 2024 – Responding to reports that officials in Ukraine had uncovered a mass procurement fraud in the country’s Ministry of Defence, Josie Stewart, Head of Transparency International – Defence & Security, said:
“The confirmation of mass procurement fraud by Ukraine’s Defence Ministry is disheartening and comes at a critical time for a nation grappling with the enduring challenges posed by Russia’s continuing invasion. This revelation poses a significant threat to the safety and security of the Ukrainian people, undermining the effectiveness of the armed forces in their defence efforts.
“We commend the ongoing investigations into this case and the efforts to recover stolen assets, which send a strong signal of Ukraine’s commitment to its continuous and transparent fight against corruption. However, this incident highlights the genuine danger of collusion in arms procurement, with destabilising effects not only on Ukraine’s self-defence but also in neighbouring countries in the Balkans.
“The fight against corruption is an ongoing struggle, and the exposure of such malpractices is a necessary step toward fostering transparency and rebuilding public trust. Transparency International Defence & Security underscores the imperative that, in times of conflict, anti-corruption measures must be central to all defence and security decisions. In Ukraine, corruption in procurement can have life-threatening consequences, compromising military operational capabilities and endangering frontline lives.”
Notes to editors:
Ukraine’s Defence Ministry recently confirmed investigators had uncovered a corruption scheme in the purchase of arms by the country’s military totalling the equivalent of about $40 million.
January 18, 2024 – Transparency International Defence & Security welcomes the seizure of $8.9million that was siphoned off by corrupt Nigerian officials from funds meant to be used to equip the country’s military in its fight against Boko Haram.
The Royal Court in Jersey, a British Crown Dependency, last week ruled that the funds were illicitly obtained by Nigerian officials in 2014.
Instead of being used for legitimate purchases of military equipment, the funds were moved out of Nigeria to a bank account in Jersey. The true source of the funds was obscured using foreign bank accounts and shell companies but the money ultimately benefited family members of Nigeria’s former ruling party.
Nigeria received an ‘E’ in Transparency International Defence & Security’s Government Defence Integrity Index, indicating a very high risk of corruption. Our assessment from 2018/19 showed Nigeria still faces considerable corruption risk across its defence institutions, with extremely limited controls in operations and procurement.
Josie Stewart, Head of Transparency International Defence & Security, said:
“We welcome the Royal Court’s decision to seize these misappropriated funds and begin the process of returning them to the people of Nigeria. This money, rather than supporting the security forces fighting Boko Haram, was diverted to enrich the country’s ruling class.
“This case underscores the pervasive risks of corruption in the defence sector, where the secrecy and complexity inherent in international arms deals, coupled with the large amounts of money at stake, create an environment ripe for abuse of office.
“It is incumbent on the Jersey authorities to return these funds openly and accountably to avoid them being stolen again. The successful return of these assets to the people of Nigeria will not only serve justice but also highlight the critical need for greater transparency in the global arms trade.”
Auwal Ibrahim Musa Rafsanjani, Executive Director of CISLAC/Transparency International Nigeria, added:
“While we wholeheartedly welcome the decision, we are hopeful that when repatriated, the funds will be judiciously utilised in improving the living standards of common Nigerians.
“We find it disturbing that money, rather than supporting the security forces fighting Boko Haram, was diverted to enrich the country’s ruling class.
“We on this note call on Nigerian Government to strengthen the procurement process in the defence and security sector through enhanced transparency and accountability, regular review as well as independent auditing.
“We also call on relevant legislative Committees in the National Assembly and Civil Society to galvanise external oversight of the Defence and Security through regular tracking and scrutiny of budgetary allocation, appropriation, implementation and procurement activities.”
January 17, 2024 – Responding to the escalating violence in Ecuador, Josie Stewart, Head of Transparency International Defence & Security, said:
“Effective civil engagement and open dialogue are the cornerstones for re-establishing peace and stability.
“We emphasise that public trust in defence and security forces hinges on transparency, particularly during times of crisis. It is crucial that the Ecuadorian government maintains transparency and accountability and ensures that its defence and security actions are open to public scrutiny.
“We firmly support the Ecuadorian citizens in their pursuit of a defence and security sector that is not only effective but also operates with transparency and accountability.”
Transparency International highlights key areas for anti-corruption efforts
January 15, 2024 – Following the elections in Taiwan, Ara Marcen Naval, Head of Advocacy at Transparency International Defence & Security, said:
“Following Taiwan’s important election, it’s imperative for the new president and legislature to balance their approach towards external threats with a strong stance against corruption. The country has already taken significant steps to mitigate corruption risk in its defence & security sector, as evidenced by its high score in our Government Defence Integrity Index, but challenges remain in defence contract offsets and the roles of brokers and agents in arms deals.
“These murky areas are especially prone to corruption, which can undermine national security and public trust. We urge the incoming administration to enhance efforts to ensure transparency and integrity, particularly in defence procurement. Strengthening these areas will build on existing progress and ensure that Taiwan’s defence sector not only remains effective and resilient, but also fosters a sense of accountability and credibility within the international community.
“By prioritising transparency and integrity in defence procurement, the incoming administration can fortify Taiwan’s position as a responsible global player. This commitment will not only bolster national security but also contribute to building enduring partnerships, fostering regional stability, and upholding the principles of good governance on the global stage.”
Notes to editors:
The Government Defence Integrity Index (GDI) scores and ranks nearly 90 countries on the quality of institutional controls to manage the risk of corruption in defence and security institutions.
Taiwan achieved an overall rank of B, indicating a low risk of defence & security corruption.
However Taiwan was ranked C, indicating a moderate risk of corruption, on the Index’s ‘procurement’ indicator.
This assesses the level of safeguards against corruption in arms deals and includes the use of defence contract offsets and the roles of brokers and agents.
Transparency International Defence & Security will be publishing new research on the corruption risk posed by offsets later this year.
December 19, 2023 – Transparency International Defence & Security welcomes the action taken in sanctioning two former Afghan officials for ‘widespread involvement in international corruption’. This move is an important step in acknowledging and addressing the impacts that corrupt practices in the defence and security sectors have on both national and international security.
The Special Inspector General for Afghanistan Reconstruction (SIGAR) recently announced that the US Treasury Department had sanctioned two individuals for corruption during 2014 to 2019 that included theft of fuel intended for the prior Afghan government’s security forces.
SIGAR said this theft denied coalition and Afghan forces of a vital resource and only made the Taliban stronger.
This corruption took place at a time when national and international efforts were supposed to be focussed on building the Afghan forces to make them more able to provide effective security. Instead, initiatives to reform and rebuild the security sector took place without the necessary focus on anti-corruption.
Josie Stewart, Director of Transparency International Defence & Security, said:
“These welcome sanctions underscore a stark reality: corruption in the defence sector is not just about theft of resources, but a direct threat to national and global security. Authorities in the United States deserve congratulations for their work in blocking these individuals from accessing the proceeds of their corruption.
“The theft of vital resources like fuel can strengthen adversaries such as the Taliban while simultaneously weakening the security forces tasked with keeping citizens safe.
“This case should highlight vividly why it’s time for more countries to step up and work towards ending the grave impact of corruption on global peace and security.
“Rather than addressing the issue after it has already had chance to take root, the international community must work urgently on strengthening defence and security institutions against the threat of corruption before its corrosive effects can set in.”
Notes to editors:
This case study by Transparency International Defence & Security highlights how rampant corruption – from seemingly petty offences to grand-scale corruption– affected all levels of the Afghan government during the initial US and subsequent International Security Assistance Force operations in the country.
A 2022 report by the UK’s Independent Commission for Aid Impact into Britain’s £3.5bn aid to Afghanistan between 2000 and 2020 concluded that “channelling funding in such high volumes through weak state institutions distorted the political process and contributed to entrenched corruption.”
Josie Stewart, head of Transparency International Defence & Security, reflects on a busy week at the Tenth session of the Conference of the States Parties to the United Nations Convention against Corruption in Atlanta.
The 10th session of the Conference of the States Parties (CoSP) to the United Nations Convention against Corruption (UNCAC) showed two things very clearly: the fight against corruption is receiving more attention than ever – but that attention has not yet translated into enough action, especially in defence and security.
Let’s start with the good news. The past week, I and more than 1,000 others spent six days running around a bustling conference centre in Atlanta, USA. Countries sent large delegations, and negotiations continued late into the nights. Unlike previous CoSPs, the 10th session saw significant attendance from global civil society, ensuring transparency and meaningful engagement.
And there is more good news. Thanks in part to the host country’s leadership, we saw corruption recognised as the security threat that it is. During the two days of opening remarks from participants, speaker after speaker acknowledged the impact that corruption has on stability, peace, and security, and I also had the pleasure of taking part in a panel discussion on this topic. We hope to see this sentiment reflected in the flagship resolution of the CoSP, the Atlanta Declaration, once it is published.
But here come the caveats. We all spent a lot of time admiring the problem, rehashing time and again the fact that corruption is bad, and there was a lot of preaching to the choir. Even in the many policy discussions and panel events that took place alongside the formal negotiations, where there was markedly little challenge, new thinking that could really push the anti-corruption agenda forward, or focus on concrete actions that could and should be advanced.
Without concrete actions, acknowledgement of corruption as a security threat remains just the first step to addressing it. And at CoSP10, the international anti-corruption community was a long way short of real action when it comes to addressing corruption in defence and security.
I’ve seen the effects of this first hand – and they are devastating.
During my time leading the UK Government’s anti-corruption agenda in Afghanistan, I witnessed the devastating effects of neglecting corruption. The failure to prioritize combating corruption led to the disintegration of the Afghan national defence forces as the Taliban advanced. In South Sudan, while working on defence governance reform, I saw how accountability and transparency were sidelined, allowing corruption in the military to fester.
Corruption is about money and power, and there’s an abundance of both in defence and security. Yet anti-corruption policy communities rarely have meaningful engagement with national security and defence policy communities. Until this week, there was no discussion about defence and security at the UNCAC CoSP
So now the words are there at least, what needs to be done?
We’re challenging states to examine how well their anti-corruption efforts are identifying and taking on the tough political choices that are needed in order to address corruption as a security threat, and we’re challenging states to focus on addressing corruption within their defence and security sectors as a critical aspect of their wider anti-corruption agendas. We want an agreed resolution on this in two years’ time, when the next UNCAC CoSP takes place.
We need to call corruption in defence and security by its name: a threat to human, national and international security. These words are now being spoken by many, but getting from words to actions, from acknowledgements to clear commitments, is the next challenge, and it is a challenge that we are committed to meet head on.
December 5, 2023 – Four of the world’s 10 biggest arms producers listed in new research from the Stockholm International Peace Research Institute (SIPRI) show a concerning lack of commitment to anti-corruption, Transparency International Defence & Security said today.
SIPRI’s 2022 Arms Industry Database lists the top 100 arms-producing and military services companies. Four of the top 10 score either an E or F Transparency International’s Defence Companies Index (DCI), which assesses and ranks major global defence companies based on their commitment to anti-corruption and transparency.
In the top four, SIPRI’s data shows General Dynamics (US), NORINCO and AVIC (China), and Rostec (Russia), collectively responsible for $876 billion in global arms trade last year. All scored poorly in the DCI, indicating a minimal or extremely poor commitment to anti-corruption.
The problem extends beyond these firms, with dozens of other companies in the top 100 assessed by the DCI to show poor or non-existent commitment to anti-corruption.
This is alarming given SIPRI’s data on the increasing demand for arms and military services globally. Corruption in the arms trade can have devastating impacts on people’s lives, leading to heightened conflict and violence, undermining governance and the rule of law, diverting resources from essential public services, and eroding trust in institutions.
Josie Stewart, Programme Director at Transparency International Defence & Security, said:
“The latest SIPRI report, when combined with our previous research on arms producers’ commitment to anti-corruption, paints a troubling picture. Far too many of the world’s biggest arms producers are falling short in addressing corruption risks.
“This should urgently motivate governments and the international community to prioritise addressing these issues in the defence and security sectors.
“As demand for arms and military services grows, it’s crucial to ensure that anti-corruption standards remain a forefront consideration, not secondary to trade, foreign, and defence policy objectives. The cost of neglecting integrity and transparency in these sectors is too great to ignore.”
Notes to editors:
Transparency International is a global movement that combats corruption and promotes transparency, accountability, and integrity in government, politics, and business worldwide.
Transparency International – Defence & Security is one of Transparency International’s global programmes and is committed to tackling corruption in the global defence and security sector.
The Defence Companies Index on Anti-Corruption and Corporate Transparency (DCI) assesses the levels of public commitment to anti-corruption and transparency in the corporate policies and procedures of 134 of the world’s largest defence companies. By analysing what companies are publicly committing to in terms of their openness, policies and procedures, the DCI seeks to inspire reform in the defence sector, thereby reducing corruption and its impact.
By Josie Stewart, Programme Director
As the sun set behind rugged mountains, casting a warm glow over the bustling streets of Kabul, whispers of fear filled the air. A generation of Afghans raised with dreams of a peaceful and prosperous homeland found themselves caught in the crosshairs of political upheaval. Also in these crosshairs, the Afghan national security and defence forces. Instead of protecting these dreams, they dissolved into thin air – a ghost army made up of ghost soldiers. They made way for the return of the Taliban, who cast a shadow not just over the city but over two decades of turmoil, military intervention, international investment, and hope. Hope that Afghanistan could become secure and stable – for its people, and for the world.
That was 2021 – only two years ago. The world’s attention has moved on but the consequences of what transpired continue for millions of Afghans.
How was this able to happen, after so much effort, by so many? There is a one-word answer. Corruption.
Failure to prioritise fighting corruption as highly as fighting the Taliban, and worse, willingness to turn a blind eye, thinking that ‘we can’t afford to do anything about corruption while we’re fighting the Taliban’, helped the Taliban win.
I can’t tell you how many times I heard that line in the couple of years I spent working in Kabul, nor how much it infuriated and worried me every time I did.
Fast forward a little, and I’ve now been at the helm of Transparency International Defence & Security for a little over a year. I’m privileged to be leading a team which has already made major contributions to advancing understanding of the true nature of corruption as a security threat, the relationships between corruption and conflict, and the need to integrate anti-corruption into defence and security sectors, agendas, and approaches.
Many others have walked –are running – along this same path towards securing integrity and fostering peace. From the work of Transparency International national chapters across our global movement, through the efforts of NGO partners around the world, to the growing commitment of multilateral institutions and even, in some places, the official designation by states of corruption as a threat to their national security – the world is moving towards an understanding, at last, of corruption as a fundamental threat to the safety and security of us all.
Yet, global military spending reached $2240 billion in 2022, and conflict-related deaths around the world are at a 28-year high. These are high stakes.
And of course there is the backdrop of Russia’s invasion of Ukraine, which shifted attention away from what happened in Afghanistan while also exemplifying the threat that corrupt authoritarian regimes pose to international peace and security and demonstrating the impact that corruption can have on military effectiveness.
Faced with all this, it’s time to raise the bar. To push beyond agenda-setting, to come together with others to lock in progress, and to ensure real change in policy and in practice.
Our new strategy, Securing Integrity, Fostering Peace, identifies the opportunities, pathways and partnerships that will help us advance peace and stability by reducing corruption in defence and security. It sets out three global themes, for three years of action:
- Corruption as a security threat. We are going to champion this global agenda, joining forces with all those already on this path, and mobilising others to join the cause. Together, we are going to get this issue onto international and multilateral agendas. And as a part of this, we are going to make sure the role of corruption within defence and security sectors is not overlooked or ignored.
- Anti-corruption in defence, security, and arms trade decision-making. With our national chapter partners, we are going to target specific issues and risks in specific countries whose policies and practice affect security outcomes beyond their own borders. We will evidence these issues and risks, we will use our evidence to inform our advocacy, and we will influence change.
- Informed and active citizens driving integrity in defence and security. Corruption in defence and security isn’t a battle for a select few; it’s a cause for all who care about stability and justice. To bring corruption in defence and security out of the shadows, civil society at national level, media organisations, and communities need to be aware of the issues at stake. They need to know how they can engage, and be able to push for change. We will work with and support them to help make this happen.
We’re going to be bolder, more targeted, and more ambitious in what we do. And as we do, we want and need more allies, more partners, and more support. Will you join us in this pursuit of a more transparent, accountable, and secure future? Please get in touch with me or my team: defence@transparency.org
Responding to the launch of the United Nation’s New Agenda for Peace, Emily Wegener, Evidence and Advocacy Officer, Transparency International Defence and Security said:
“This week, the UN’s Secretary General, António Guterres, launched the New Agenda for Peace. Transparency International Defence & Security embraces its emphasis on building trust and solidarity among states. They are essential for fostering lasting peace and cooperation. Fighting corruption in all forms is a fundamental part of building trust, as Our Common Agenda acknowledges. However, it did not receive a mention in the New Agenda for Peace.
“Going forward, we recommend that the implementation of the agenda and its proposed actions actively incorporates anti-corruption measures at all levels. It is only through collective and comprehensive efforts that we can pave the way toward a more peaceful and sustainable world for all.”
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As the Munich Security Conference begins today, Josie Stewart, Director of Transparency International Defence and Security, said:
“If Russia’s war in Ukraine has taught us anything, it should be that raising the stakes in the fight against corruption should be high on the agenda at the Munich Security Conference (MSC).
“Energy supply disruptions, Russia, and an economic or financial crisis have been flagged as the top three security risks for leading democracies in 2023. But almost a year after Russia’s invasion of Ukraine, we can expect the MSC, beginning today, to shift its focus back to traditional concepts of security and defence.
“In this context, it has never been more important for leading democracies to take on the fight against corruption as a global security imperative. If the enemy of democracy is corruption, the Western military industry needs to cleanse itself at home before fighting it abroad.
“We look forward to hearing the outcomes of a panel discussion at the MSC organised by Transparency International and the Basel Institute on Governance.”
Corruption fuels conflict and insecurity globally, and we are now seeing its effects acutely in the case of Russia and Ukraine.
Leading democracies have facilitated this conflict by allowing kleptocrats to further their interests and power across the West. Just last week, Transparency International reported on a German state foundation secretly controlled by Russian gas company Gazprom and acting in support of the Nord Stream 2 pipeline.
Daniel Eriksson, Transparency International CEO, said:
“In a system without checks and balances, Russian elites are emboldened to act against international law, now beginning a war in which thousands of lives may be lost. Corruption kills, and governments around the world have a responsibility to address the root causes of such conflicts.
“For too long, leading economies have turned a blind eye to dirty Russian money for fear of standing up to powerful economic interests. Secrecy laws and lack of oversight from authorities have allowed the Russian elite to hide their wealth, funding corruption back home and abroad.
“The West can no longer allow its financial systems to enable dirty money flows around the globe and especially in Russia. Now is the time for governments to put a full stop to the dirty money that fuels corruption and conflict.”
As we face a global crisis that threatens to kill thousands, Transparency International call for leading economies to address corruption exacerbating this conflict and democratic decline.
Kleptocrats hide their wealth behind anonymous companies and rely on complicit banks, corporate services and real estate agents in Western countries to move it around as they wish. Leading economies must enforce existing rules to stop now the flows of money funding oligarchs and their attacks on the peoples of Ukraine, Russia and beyond. Equally urgent is a concerted effort to locate and freeze assets that could be connected to corrupt Russian officials in bank accounts and invested across the globe.
For more on Transparency International’s recommendations to stop the flow of dirty money see here: https://www.transparency.org/en/our-priorities/dirty-money