Category: Responsible Defence Governance

Responding to EU plans, Transparency International Defence and Security Director Josie Stewart said:

Transparency International Defence and Security welcomes the new anti-corruption plans announced by the European Union this month.

Our most recent Government Defence Integrity index established that EU member states are exposed to an alarming risk of corruption in military operations.

This is due to a lack of anti-corruption measures sufficient for governing the sector.

Combating corruption is crucial to ensuring the rule of law, protecting human rights and promoting sustainable development. 

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In response to heavy fighting that has seen the loss of over 400 lives in Sudan in recent days, Josie Stewart, Director of Transparency International Defence and Security Director, said:

What we are seeing in Sudan is an example of what can happen when security sector reform fails.

Following a coup in 2021, the Sudanese army shared power with the Rapid Support Forces (RSF), an independent paramilitary force with significant political and fighting power.

In December, all parties agreed to transition to a democratically elected government and integrate the RSF into the regular army. But tensions arose around the timeline for integration and the chain of command.

Without this critical agreement on reform of the country’s security sector which would build and strengthen the accountability and governance of the Sudanese armed forces, Sudan and its people are now facing civil war.

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Negotiations have been taking place in Geneva this month around the control and accountability of private military and security companies (PMSCs). Transparency International Defence and Security’s Ara Marcen Naval contributed to the discussions in Switzerland. Here she delivers a call to action to other civil society organisations.

As an NGO committed to promoting transparency and accountability in the defence and security sector, Transparency International Defence and Security (TI-DS) is deeply concerned about the corruption risks associated with the activities of PMSCs. These groups, while playing a role in enhancing security in some cases, often operate in secrecy, outside standard transparency and accountability structures. This permissive environment creates opportunities for corruption and conflict to thrive, deprives governments and citizens of financial resources, and undermines security and human rights.

I write having participated last week in the discussions of the Open-Ended Intergovernmental Working Group on PMSCs. This fourth session was convened to discuss a new draft of an international instrument to regulate the activities of PMSCs. This is a critical platform for addressing these concerns and others related to companies’ human rights obligations. There are various questions: how to ensure their activities comply with international humanitarian law? Should these companies be allowed to participate directly in hostilities?

The PMSC industry is a rapidly evolving and intrinsically international one, with a well-documented link to global conflict. The lack of regulatory oversight has led to heightened global risks of fraud, corruption, and violence, with little in the way of accountability mechanisms at both the national and international levels, so progress at a global level is key.

Current initiatives to try and regulate the market, such as the Montreux Document and the International Code of Conduct for Private Security Service Providers, are a step in the right direction. However, these initiatives have limited support among states around the world. They do not cover some key military and intelligence services and exclude some important anticorruption measures. TI-DS thinks these initiatives don’t go far enough to address the risks posed. We are hopeful that the efforts of the working group will provide a much-needed stronger set of enforceable standards.

TI-DS welcomes the progress made in the revised draft discussed last week, including references to the UN Convention Against Corruption and the UN Convention against Transnational Organised Crime. These references are essential steps towards policy and legal coherence, aligning efforts to regulate PMSCs with international legal obligations related to corruption and transnational organised crime.

While in Geneva I continued to propose ways that the text of the draft instrument can better incorporate anticorruption standards, including transparency of contracts and beneficial ownership, and through the recognition of corruption-related crimes as well as human rights abuses.

But we are deeply concerned about the overall lack of engagement. The room was almost empty, with many states not attending the discussions and a general lack of civil society actors actively following this critical process – prospective changes that could significantly impact conflict dynamics, international security, human rights and respect for international humanitarian law.

This is the Geneva Paradox. Other similar processes, like those related to business and human rights or others trying to get a grasp of new types of weapons systems, are filling the rooms of the United Nations, with both states and civil society in attendance. We feel that this process – which is attempting to regulate the activities of PMSCs to stop the trend of these corporate actors becoming rogue actors in wars and conflicts around the world – deserves equal attention.

In September, the Human Rights Council will set the agenda for this issue going forward. We hope that more states and civil society organisations join efforts in the coming period to give this issue the critical attention and scrutiny it deserves.

Responding to the recently published US Strategy to Prevent Conflict and Promote Stability, Josie Stewart, Director of Transparency International Defence and Security, said:

The new strategy suggests that American policymakers are increasingly recognising the importance of anti-corruption approaches in confronting conflicts around the world.

With the long history of corruption fuelling conflicts, US and global policymakers must treat corruption as an urgent and permeating concern.

The path to peace and stability can only be built on concrete foundations. These should begin with anti-corruption efforts in defence – the sector most fundamental to safeguarding security.

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Responding to United Nations Security Council statements on security sector reform, Josie Stewart, Director of Transparency International Defence and Security, said:

There’s a lot to like about statements on security sector reform made by members of the UN Security Council last week.

Security sector reform is at least as much political as it is a technical process – governance and integrity are key.

And security sector reform is successful when it is inclusive – the participation of local communities is essential. Civil society has a key role to play in addressing corruption in defence and security.

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Responding to the latest annual data on global arms transfers, published by the Stockholm International Peace Research Institute (SIPRI) this month, Sara Bandali, Transparency International Defence and Security Director of International Engagement, said:

While international arms sales have decreased over the last decade, the bloody legacies of corruption in arms transfers linger.

Across Africa’s Sahel region, national weapon stockpiles have been depleted, with the corrupt diversion of arms bolstering groups such as Islamic State and Boko Haram. Killing of civilians and sexual and gender-based violence perpetuates, with the people of countries such as Nigeria and Mali left no safer by the arms that have entered their nations.

These risks are not constrained to the Sahel. Our latest Government Defence Integrity index shows almost half (49 per cent) of global arms imports are going to countries facing a high to critical risk of defence corruption.

Governments should strengthen transparency and accountability in arms transfer decision making to meet the reporting obligations of the Arms Trade Treaty. The scrutiny of lawmakers, auditors and civil society can deliver arms deals that truly enhance security.

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Responding to reports of new security aid for Ukraine, Josie Stewart, Director of Transparency International Defence and Security, said:

Fresh security assistance for Ukraine is welcome, but history has taught us that aid packages of the size being pledged in recent weeks carry significant risk.

So far there is limited information about the defence companies delivering assistance to Ukraine, what influence they carry, and what measures they are taking to reduce corruption.

There is also always a risk that arms will end up in the wrong hands as the war continues.

Civilian oversight of military assistance is integral to robust defence governance and the strengthening of institutional resilience that is necessary to manage these risks.

This should be a shared responsibility between donor countries and Ukraine.

Responding to the United Nations Security Council all-day debate on the Rule of Law Among Nations, Josie Stewart, Director of Transparency International Defence and Security, said:

United Nations Secretary General Antonio Guterres last week reflected on the “strong and mutually reinforcing relationship between the rule of law, accountability and human rights”, describing how “ending impunity is fundamental”.

Our Government Defence Integrity Index (GDI) facilitates such accountability by shining a light on the level of resilience to corruption — and independence of institutions — in countries as diverse as Israel and Mali.

Drawing on evidence contained within the GDI reveals critical steps governments can take to prevent the spectre of a “new rule of lawlessness” — a danger raised by Guterres at the Special Council session on January 12 . 

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Responding to claims that Russian mercenaries have been contracted in Burkina Faso, Josie Stewart, Director of Transparency International Defence and Security, said:

“Outsourcing national security to unregulated groups risks compounding conflict and corruption threats, rather than safeguarding civilian rights and resources. The people of Burkina Faso and the wider region are entitled to expect any roles being played by private actors to be transparent and accountable at all times.”

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In response to reports Sweden plans to bring forward a commitment to spending two per cent of its GDP on defence, Josie Stewart, Director of Transparency International Defence and Security, said:

“As NATO countries increase their defence spending in response to the war in Ukraine, Transparency International is calling for equal commitment to strengthening oversight of defence procurement. While Transparency International’s Government Defence Integrity Index (GDI) found corruption risk in Sweden’s defence sector to be only moderate, oversight of defence procurement remains limited and issues around industry influence remain unresolved. As Sweden prepares to join the NATO, these vulnerabilities must be addressed in order to build democratic resilience and safeguard both resources and lives.”

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Michael Ofori-Mensah, Head of Research at Transparency International Defence and Security, describes some of the dangers documented in our latest research paper.

Unaccountable private military and security companies continue to pursue partnerships that in recent years have led indirectly to the assassination of presidents and journalists, land grabs in conflict zones, and even suspected war crimes.

From Haiti to Saudi Arabia to Nigeria, US-based organisations – the firms that dominate the market – have found themselves associated with a string of tragedies, all while their sector has grown ever-more lucrative.

Transparency International Defence and Security’s latest research – ‘Hidden Costs: US private military and security companies and the risks of corruption and conflict – catalogues the harm playing out internationally as countries increasingly seek to outsource national security concerns to soldiers of fortune.

Hidden costs from the trade in national security

While the US and other governments have left the national security industry to grow and operate without proper regulation, the risks of conflict being exploited for monetary gain are growing all the time.

Hidden Costs documents how the former CEO of one major US private military and security company was convicted – following a guilty plea – of bribing Nigerian officials for a US$6bn land grab in the long-plundered Niger Delta.

Our research also highlights that the Saudi operatives responsible for Jamal Khashoggi’s savage murder received combat training from the US security company Tier One Group.

Arguably most damning are the accounts from Haiti, where the country’s president was killed last year by a squad of mercenaries thought to have been trained in the US and Colombia.

Pressing priority

Many governments around the world argue that critical security capability gaps are being filled quickly and with relatively minimal costs through the growing practise of outsourcing.

Spurred on by the US government’s normalisation of the trade, US firms are growing both their services and the number of fragile countries in which they operate.

The private military and security sector has swelled to be worth US$224 billion. That figure is expected to double by 2030.

The value of US services exported is predicted to grow to more than $80 billion in the near future, but the industry and the challenge faced is global.

The risks of corruption and conflict in the pursuit of profits are plain.

These risks are as old as time. But their modern manifestations in warzones must not be left to spill over. The 20-year war in Afghanistan cultivated dynamics that threaten further damage, more than a decade after governments first expressed their concerns.

Required response

International rules and robust regulation are urgently needed. We need measures that ensure mandatory reporting of private military and security company activities. The Montreux Document lacks teeth, operating as it does as guidance that is not legally binding. Code of conduct standards must also become mandatory for accreditation, rather than purely voluntary.

Most private military and security firms are registered in the US. So Transparency International Defence and Security is also calling on Congress to take a leading role in pushing through meaningful reforms under its jurisdiction. There is an opportunity arriving in September, when draft legislation faces review.

Policymakers have long been aware of the corruption risks and the related threats to peace and prosperity posed by this sector. The time for action is well overdue. No more Hidden Costs.

By Ara Marcen Naval, Head of Advocacy at Transparency International Defence & Security

Last week the US President issued a government memorandum making corruption a core national security concern.

Transparency International’s new research reveals there is good cause for concern. The 2020 Government Defence Integrity Index (GDI) shows that nearly two-thirds of countries –  62 per cent – face a high to critical risk of corruption in their defence and security sectors.

Countries that score poorly in the GDI have weak or non-existent safeguards against defence sector corruption. They are more likely to experience conflict, instability, and human rights abuses. Sudan, which has just undergone a military coup, came bottom of the Index with a score of 5/100 while New Zealand came top with a score of 85/100.

The GDI findings should ring alarm bells in governments around the world; particularly as global military spending has increased to some $2 trillion annually, fuelling the scale and opportunity for abuse.

Corruption in a nation’s defence institutions weakens security forces and threatens wider peace and stability. It eats away at public trust in the state and the rule of law, giving vital oxygen to non-state and extremist armed groups. It leaves governments unable to properly protect their citizens – their primary function. We have seen examples time and time again. Think of Iraq, when in 2014 50,000 ‘ghost soldiers’ (troops that exist only on paper) were found on the books.  Their salaries were either stolen by senior officers or split between soldiers and high-ranking officers. The phenomenon has a human and financial cost leaving forces depleted, unprepared to face real threats and unable to fulfil their mandate to protect citizens and provide national security.

The GDI provides defence institutions across 86 nations with a comprehensive assessment of their corruption risk and a platform to identify the safeguards needed to prevent corruption. It does not measure corruption itself. It is not concerned with calculating stolen government funds, identifying corrupt figures, nor even estimating how corrupt the public thinks their defence forces are.

Rather, the GDI offers a roadmap for better governance of the defence sector. It maps out gaps in policies and practices that can prevent corruption and provides standards that countries can follow to strengthen their systems, across five main risk areas: policymaking and political affairs, finances, personnel management, military operations, and procurement. It assigns a score out of 100 and ranks countries from A (very robust safeguards) to F (limited to no safeguards against corruption).

Military operations

The GDI results are particularly poor when it comes to military deployments for internal security operations and peacekeeping missions overseas. Almost every country assessed performs badly in terms of anti-corruption safeguards in this area. That includes nations most actively engaged in international missions. Bangladesh scores 0/100 operationally yet is the top contributor of uniformed troops to UN peacekeeping missions.

Countries facing internal threats fare no better when it comes to military operations. A lack of anti-corruption safeguards means troops may be more likely to contribute to exacerbating conflict rather than bringing about peace.

These findings leave little doubt that governments are overlooking the corrosive impact of defence and security corruption despite its clear threat to peace, stability and human life.

Arms trade

The GDI also reveals significant corruption risks among the world’s major arms suppliers and recipients.

Eighty-six percent of global arms exports between 2016-2020 were from countries with a moderate to very high risk of corruption. For major arms suppliers, the GDI exposes poor parliamentary scrutiny, transparency and oversight in export and procurement processes. The top five exporters accounted for 76% of the global total.

Meanwhile, just under half – 49% – of global arms imports are to countries with a high to critical risk of defence corruption. These countries lack the policies and systems to independently oversee these deals or how these weapons will be used. Nor do they provide meaningful data on how they choose which companies to buy from or whether any third parties are involved. This lack of transparency leaves the door wide open to bribery, theft of public money and to weapons finding their way into the hands of criminal gangs or insurgent groups.

Overall, the GDI paints a dismal picture of a defence sector that continues to operate in secrecy, with inadequate policies and procedures to mitigate high corruption risks. This lack of transparency and accountability sets the scene for government activity that has devastating consequences for civilians and global security.

If governments are serious about building national and international security and stability, they must embed transparency and anti-corruption at the core of defence institutions. Getting this right is vital to averting future conflict, failed interventions and the devastating human cost that comes with them. To see the GDI results in detail go to https://ti-defence.org/gdi