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Country: Ukraine

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.

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:

  1. 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.
  2. 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.
  3. 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 reports of corruption in Ukraine military recruitment centres, Josie Stewart, Director of Transparency International Defence and Security, said:

Reports of “unfit to serve” certificates being sold from Ukraine’s regional military recruitment centres demonstrate once again how corruption can potentially undermine military systems.

This case affirms the role free media can play in holding officials to account while it has been good to see swift action taken by the government since the findings were published.

In contrast to the corruption-related problems that have plagued the effectiveness of Russia’s Army from the start, Ukraine has invested in improving oversight and accountability.

Ukraine is continuing to fight corruption at the same time as fighting on the battlefield. With the stakes this high, they know they must win on both fronts.

press@transparency.org.uk
+ 44 (0)20 3096 7695
Out of hours – Weekends; Weekdays (UK 17.30-21.30): +44 (0)79 6456 0340

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

The latest NATO gathering, staged earlier this week [June 11-12], represented a crucial opportunity for militaries to address the challenges facing the Alliance and strengthen deterrence and defence. Russia’s ongoing war against Ukraine provided the backdrop. This landscape should also galvanise us to address a further challenge that must not be ignored. Corruption in military operations and other defence governance issues, including procurement and military expenditure, can lead to money intended for the frontlines being lost and, as history has taught us, undermine the very security goals the Alliance seeks.

Allegations surfaced earlier this year that the Ukrainian Ministry of Defence was planning to overpay suppliers for food intended for troops. The scandal prompted hearings in the Ukrainian parliament and investigations, ultimately leading to the passing of legislation enhancing transparency in defence procurements.

This law requires the publication of core information about direct contracts. Although there are still challenges in ensuring full and timely disclosure of this information, Ukraine took a bold step towards greater transparency, particularly in the midst of ongoing conflict.

It is essential to fight corruption during times of war. It can be risky to do so – to draw attention to corruption, and to mess with the interests and incentives of key actors in the theatre of war. But the risks of not doing so – or of putting it off until later – are far greater. Failure to tackle corruption during war guarantees that it will flourish. And when it does, it will defeat the prospect of moving on from conflict to stability and security.

Delivering on deterrence and defence

During this week’s NATO Summit in Vilnius, Lithuania, leaders gathered to tackle the challenges facing the Alliance. Ukraine was one. Another was the imperative to strengthen deterrence and defence.

For those who are not familiar with military terminology: deterrence is a strategy that involves convincing your adversary not to attack by making them understand that their objectives will not be achieved through such an attack. Defence becomes necessary when deterrence fails.

Strengthening both deterrence and defence depends on improving the governance of the defence and security sector, with a particular focus on strengthening resilience against corruption.

An army plagued with corruption, such as soldiers accepting bribes, governments misusing military expenditure, and officials making decisions influenced by personal gain, will not be able to win a war – and it will not be able to deliver on deterrence. It will be perceived as an enemy that can be easily defeated.

An army that is unpaid, under-fed, and under-equipped due to embezzlement and black-market activities of senior officers, will not be able to protect its citizens and territory. Corrupt defence and security forces increase the vulnerability of states to external and internal aggression – they are not able to deliver on defence.

Our 2020 Governance Defence Integrity Index revealed that 14 of the then 22 NATO member states did not address corruption in their military doctrines. This means that corruption is not considered a strategic issue in the military operations of 63 per cent of then-NATO members, and there are no guidelines on how to mitigate associated risks. This should be a sobering fact for NATO leaders.

What good looks like

Defence institutions must integrate the fight against corruption into military doctrines, conduct corruption risk assessments, implement effective anti-corruption mechanisms, enhance oversight, and close the gaps that allow for wrongdoing. Additionally, increasing transparency in defence budgets, spending, and procurement, protecting whistleblowers, and engaging with civil society to assess corruption risks are all vital steps towards achieving deterrence and defence.

Our Governance Defence Integrity Index sets a global standard. As NATO leaders head home from the summit, they should be thinking about how well their defence and security sectors meet this standard.

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.

press@transparency.org.uk
+ 44 (0)20 3096 7695
Out of hours – Weekends; Weekdays (UK 17.30-21.30): +44 (0)79 6456 0340

Responding to fresh data from the Stockholm International Peace Research Institute (SIPRI) demonstrating record global military spending, Transparency International Defence and Security Director, Josie Stewart, said:

New SIPRI data has revealed that the total global military expenditure increased by 3.7 per cent in real terms in 2022, reaching a new high of $2240 billion.

This increase in spending – coupled with our Government Defence Integrity index’s finding that nearly two-thirds of countries face a high to critical risk of corruption in their defence and security sectors – should be cause for concern for governments around the world.

To ensure that military expenditure is contributing to security rather than corruption and abuse, governments should strengthen transparency, accountability, and oversight in the defence sector, providing for adequate scrutiny from lawmakers, auditors, and civil society.

Transparency is the best way for states to ensure that military spending is used effectively to enhance security.

press@transparency.org.uk
+ 44 (0)20 3096 7695
Out of hours – Weekends; Weekdays (UK 17.30-21.30): +44 (0)79 6456 0340

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.

We know that corruption can be gender-specific in both form and impact. We know that it can perpetuate sexual and gender-based violence and gender inequality, and we know that the risks of this are highest in conflict, defence and security realms.

Sexual forms of corruption – often labelled as ‘survival sex’ – are commonplace in conflict, peacekeeping missions and humanitarian crises, with security and humanitarian individuals and groups among the main perpetrators.

Women’s exclusion from peace processes also undermine efforts to promote anti-corruption.

In response, we are leading the development of new approaches to integrate a gender-perspective across our work and the work of others at the intersection of conflict, defence and security, and corruption.

#InternationalWomensDay 

Russia’s war in Ukraine has made slow progress amid a catalogue of corruption-related blows to the morale of its military. Josie Stewart and Joseph Moore chart the stalling of long-standing attempts to control Ukraine.

When Vladimir Putin launched Russia’s invasion of Ukraine in the early hours of that cold February morning a year ago, his plan represented a shock and awe offensive, aimed at encircling the capital Kyiv until the capitulation of the Ukrainian army and, eventually, the annexation of Ukraine. Even amongst Western observers, there was scepticism that Ukraine could effectively counter Russia.

This was the next step in a strategy which had already seen Putin spend two decades trying to control Kyiv through weaponised strategic corruption: enriching pro-Russian oligarchs in Ukraine such as Dmytro Firtash or Viktor Medvedchuk, who in turn bought up news channels, bankrolled political parties, and steadily built up Ukraine’s political and economic dependence on Russia.

But when corruption is used as a weapon, it can backfire.

Up until recently, the Russian army was praised as one of the world’s most powerful militaries. Today, one year on from the escalated invasion, having already suffered staggering loses with an estimated 200,000 dead and wounded soldiers, Russia’s ill-predicted quick victory seems a long way away.

There is no question that the war has not gone as Putin hoped. How much of this is because a reliance on corruption has come back to bite him?

Back in 2008, Russia embarked on the task of modernising its military forces. This process entailed a rapid increase in defence spending: 175 per cent growth from 2000-2019, according to Stockholm International Peace Research Institute. This peaked in 2016 at 5.5 per cent of gross domestic product (GDP). That’s a lot of spending in a context where public sector corruption is rife.

Our most recent Corruption Perceptions Index ranked Russia 137th out of 180 countries and Russia’s military is not immune. Our Government Defence Integrity Index 2020 assessed Russia’s defence sector as being at high risk of corruption, due to the extremely limited oversight of defence-related policies, budgets, activities and acquisitions, in conjunction with high levels of opacity in defence procurement.

As a result, bribe money intended to buy a Ukrainian coup was stolen before it could leave Russian hands, soldiers on the front line were provided with ration packs seven years out of date, crowdsourcing for body armour was required for troops not properly equipped for the war, fuel was sold on the black market before it could power Russian tanks and supply chains failed. Ultimately as a result of this all –  Russian morale suffered.

The UK Ministry of Defence’s intelligence updates further supported this and flagged ‘corruption amongst commanders’, with the “Russian military… consistently [failing] to provide basic entitlements to troops deployed in Ukraine… almost certainly contributing to the continued fragile morale of much of the force.” The Head of Ukraine’s National Agency on Corruption Prevention of Ukraine (NACP) also expressed his “sincere gratitude” to Russian Defence Minister Sergei Shoigu – who is alleged to own property worth at least $18 million (somehow reportedly acquired on his official annual salary of $120,000) – for the “invaluable contribution” Russian embezzlement had provided in better enabling the defence of Ukraine.

In contrast to the corruption-related problems that have plagued the effectiveness of Russia’s Army from the start, Ukraine has invested in improving oversight and accountability, action initiated following the annexation of Crimea in 2014. Our colleagues at the Independent Defence Anti-Corruption Committee (NAKO) have been working closely with the Ukrainian Government on this since 2016. Ukraine is continuing to fight corruption at the same time as fighting on the battlefield. With the stakes this high, they know they must win on both fronts.

At Transparency International Defence and Security we have long argued that a failure to strengthen defence governance together with increases in defence spending increases the risk of corruption – and that corruption in defence undermines military effectiveness. In other words: it’s not just how much you spend that determines the outcome. Russia’s challenges in Ukraine only reinforce this argument.

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.

Regulatory oversight of the private military and security sector is failing to keep pace with the rapidly growing and diversifying industry, leading to heightened global risks of fraud, corruption and violence. Better regulation of the industry is urgently needed.

This three-page fact sheet defines Private Military and Security Companies and outlines the required response.