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Q45.

Are chains of command separate from chains of payment?

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Chains of command and the chains of payment are separate. This separation of competencies exist in the Ministry of Defence (MoD) and General Staff, but in the services and the command strcuture, the payment chain overlaps. In the services, the commander is responsible for both the command and payment chain [1, 2]. The standard payroll form includes, gross salary, allowances, and deductions, is provided by the Ministry of Finances and Economy [3].

There is no evidence confirming whether chains of command are separate from chains of payments; see the last country assessment (1). The Statute of Military Personnel presents, on the one hand, the hierarchical structure of the military (2) and stipulates on the other that soldiers are entitled to remunerations and benefits (2). No information could be found on whether chains of command are separate from chains of payment. Also, Presidential Decree No. 07-304, which regulates the salary index grid and the compensation scheme for civil servants does not provide any information on the civil service (3).

Salary payments should be made via the electronic Integral System of State Financial Management (SIGFE) that was created in 2004 to be rolled out by 2008. However, it’s unclear when the rollout was completed in the defence sector. There are indications that from 2016, in response to the deepening financial crisis, the government has stepped up efforts to update the salary database to weed out ghost public servants (1). In August 2018, President Lourenço in Presidential Decree No. 173/18 ordered the end of cash payments to public servants, though it remains to be seen how successfully the measures are implemented (2), (3).

There have been recurring media reports over the last few years on cases of illegal cash salary payments to soldiers that are employed by the president’s Security Office. According to a media report in September 2017, soldiers employed by the president’s Security Bureau have been threatened with imprisonment for complaining about salary delays and salary payments in cash, contrary to established procedures (4).

The chain of command is separate from the chain of payment in Armenia. Commanders have no authority to influence the rates for their staff. Monetary security is regulated through the Law on Remuneration of State Employees [1]. The law provides that all those holding state positions (defence sector inclusive) are subject to the principles and provision of the law. The law does not apply to the conscripts and students of military educational institutions. The monthly remigration of the latter is assigned through government decisions. In all other relevant cases, Clause 1 of Article 16 of the law provides the official rate for a particular position is composed of a basic wage rate and all additional payments that derived from the description of the position held. Article 23 of the law provides that all other payments and financial aid, social benefits inclusive, are regulated through the laws on social security of military personnel [2].

It is almost impossible to get information on this subject. The issue of different chains of payment and command probably varies in different branches. It is not possible to obtain internal documents from the Ministry of Defence, the Border Troops, and the Internal Troops that pertain to this issue. Technically, the chains of payments are separate from the chains of command. According to a decision of the Cabinet of Ministers (2017), military personnel serving in the army and other armed units, as well as in other public bodies, shall be determined by the statutes approved by the heads of these agencies, taking into account their salaries and the types of money they provide. This decision envisages additional payments (allowances and bonuses) to the military in different positions, at the same time, in difficult circumstances, in need (1).
The Finance and Budget Office within the Defence Ministry is responsible for the payment of salaries of military servicemen in the army. The staff of this office consists of officers. There are allegations that the staff interfere with the payments to military personnel, in certain cases payments to soldiers and officers are sometimes reduced unofficially; funds allocated for certain works (construction, transport, etc.) in military units are not sent to the staff (cases of embezzlement), instead, the officers work use their money (2). For example, an expert says that most of the officers in the front line pay 250 AZN of their wages to a taxi service, even though the state budget allocates expenses for transportation expenses; these funds are embezzled (3).

Chains of command are separate from the chains of payment. Human resources management is performed by the Army’s Support Command, separate from operational commands. There is also a separate Personnel Management Section within the Ministry of Defence. The Law on Salaries and Allowances in the institutions of Bosnia and Herzegovina in Articles 13, 14, 15 and 16 determines the salary grades and fees for all categories of professional military personnel, meaning that commanders do not influence salaries [1]

The chain of command is completely different from the chain of payment (1). According to Article 19 (1) of Law No. 038 (2016) states, “the personnel of the Armed Forces have the right to remuneration while performing their duties and responsibilities” (2). The actual — “Intendance Militaire — is responsible for all payment, and supplies in the defence ministry. Besides, Article 19 (4) “any measure of broader purpose affecting the remuneration the employees of State civil service is, except necessary adaptation measures, applied with simultaneous effect to the personnel of the Armed Forces.” In the gendarmerie or the armed forces, the chain of command inspects departments and units, and each commanding officer performs an inspection at his or her own level of command, based on pre-established annual timetables, or without any notice, to ensure that every man or woman is on duty (3). However, under some circumstances, the remuneration of the personnel takes place within the unit. This often happens, especially for newly enrolled personnel, living in dormitories within the unit they belong to. To this end, Article 27 says that “the personnel of the Armed Forces have right to their unit-based housing,” and a little sum is taken from their salary for housing fees.

The chains of payment are separated from the chain of command given that the chain of payment is directly under the Ministry of Finance, which manages the salaries of all civil servants. However, the Presidential guards, who are civil servants, that have been co-opted from the different security services to serve the President of the Republic have certain privileges and allowances that come from the budget of the Presidency [1] [2] [3] [4].

The official chain of command (chaîne de commandement) at the MoD is separate from the chain of payment (chaîne de paiement) for civil servants (fonctionnaires publics). There is evidence of exceptions to this rule in the aftermath of the soldier uprisings of January and May 2017. The Directorate General of the Treasury (Direction Générale du Trésor) is generally tasked with paying civil servants. This is known in French as the “masse salariale de la fonction publique”. The Treasury deposits the money in banking institutions. For example, in April 2018, a tranche of the wage arrears and salaries promised to military officers was disbursed via the Caisse générale de retraite des agents de l’Etat (CGRAE) (1). In addition to the Directorate General of the Treasury, the Directorate of the Office of the Armed Forces has a significant role in the calculation of the pays and allowances serviced to the members of the armed forces. This service although headed by a general directly falls under the authority and command of the chief of staff of the army. Hence, there is hardly any delineation between these two chains of action.

As per Law No. 2016-1109 (Portant Code de la Fonction Militaire) of 16 February 2016, Chapter 3 (Solde, avantages divers, garanties et protection), Articles 32-37, address the allowances provided to members of the military. For example, Article 33 refers to the different types of remuneration: basic salary, special compensation, residence allowances, family benefits and other bonus payments. Article 35 refers to per diem payments to cover transportation and lodging. Article 37 covers paid annual leave of 45 calendar days. But there is no provision specifying the payment channel (chain of payment) (2). Law No. 2016-1109 provides for a special remuneration regime for higher-ranking military officers such as marshals and generals. Title 3 (Dispositions particulières à certaines catégories de militaires), Chapter 1 (Maréchaux et officiers généraux), Articles 114-120 outline this special remuneration regime. There is no provision specifying the payment channel (2). In November 2012, there were instances in which certain soldiers were being paid their salaries in cash. The news aggregator Koaci.com reported that a source had revealed the different places where soldiers were secretly being paid to avoid long lines at banking institutions. According to the source, this alternative payment method was adopted by President Ouattara shortly after coming to power (3).

In January 2017, the opposition daily “Aujourd’hui” revealed the salary levels (grilles salariales) of members of the military according to their rank. The leaked information was not confirmed by the Army Chiefs of Staff. However, the source did not state what entity was tasked with paying the salaries. (4)

In May 2018, France’s La Tribune said the second phase of wage arrears payments had been completed as part of the government’s early retirement scheme for members of the armed forces (FACI). There was an official ceremony in Akouédo (Abidjan) to celebrate the measure, aimed at retiring 4,000 military officers by 2020. During the ceremony, Minister of Defence Hamed Bakayoko several officers were symbolically provided with checks valued at about USD 30,000 (15 million FCFA). No details were provided as to how the wage arrears had been disbursed (5). In November 2018, Koaci.com reported that Minister of Defence Hamed Bakayoko had addressed the NA Commission on Security and Defence (Commission de la Sécurité et de la Défense, CSD) regarding the draft legislation for Order No. 2018-515 (Ordonnance No. 2018-515 Portant Sanctions Administratives Applicables aux Militaires) of May 30, 2018. The draft, adopted unanimously by the CSD, confirmed the administrative penalties that apply to members of the armed forces. Minister Bakayoko stated that the State was responsible for paying salaries and allowances of the members of the armed forces and that all the outstanding arrears claimed by the soldiers had been paid by November 2018 (6).

Based on the examples above, it can be said that the chains of command are “generally” separated at the MoD.

According to our sources, the chains of commands and chains of payments are not separate, evidence shows that commanders punish lower officers and soldiers by deducting and reducing their salaries for a month or more (1), (2), (3).

The pay brackets are public and approved by the Minister of Defence. [1] Within those brackets, superiors have the right to decide what will be the exact individual pay. The superior has the right to promote and increase the pay. However, the Commander of the Defence Forces has the last say. [2] The immediate commander of the military serviceman evaluates [3] the compliance of the military serviceman in his or her subordination with the peacetime post for at least once a year. The remuneration for the Commander and other top personnel is allocated by the Minister. [4]

Finances and command in the system of state service of Georgia, including the Ministry of Defence (MoD) and the General Staff, are strictly divided according to the Law On State Service and Law on Remuneration in State Service (Article 4) [1]. Also, financial transactions are centralised and operated by the Treasury. Procurement and financial management are divided and are in the purview of the MoD. The Financial Department and Procurement Department are responsible for procurement and financial operations within the MoD and the General Staff [2, 3].

Chains of command are separated from chains of payment (3), (4), (5). The Forces Pay Regiment (FPR), which operates under the Support Services Brigade Group, processes the payments in the Ghana Armed Forces (GAF) (1), (2). However, there is a lack of transparency, in so far as the payment system is not published, and therefore it cannot be excluded that for certain areas exceptions might be in place.

Section 214 (c) of the 1992 Constitution of Ghana empowers the Chief of Defence Staff to make regulations in respect to the control and administration of the services of the Armed Forces and the conditions of service. These include those relating to the enrolment, salaries, pensions, gratuities and other allowances of officers and men of each service and deductions from them. The Regulations on Administration and Discipline further elaborate on the laws (6).

The Ministry of Defence (MoD) Defence Economy Bureau [1] is a separate agency within the MoD, and it is the responsible body for the payments. As payment categories are defined clearly by law, officers have to respect these regulations.

Chains of payment are vulnerable to manipulation in the absence of formal oversight and transparency. The prevalence of ghost soldiers in the recent past and missed or unpaid wages in certain PMF factions is strong evidence that payment chains are vulnerable. Coverage concerning payment discrepancies emerges often, in the context of units administered by Iraq’s PMF commission. To curb these problems, Iraqi premier Adel Abdul Mahdi at the 8th National Security session launched an electronic payment platform for the disbursement of MoD government salaries. Months later, local press coverage revealed that the system had been hacked. It is not entirely clear, due to contradictory information, whether sensitive information was obtained. Manipulation of payment is most rife in the domain of retired military pensions even though the National Pension Agency exercises oversight over such allocations. What remains unclear is whether budget allocations of PMF salaries are enough to cover the total number of fighters that the PMF is comprised of.

The army’s 5th Division allegedly reports to “the militias’ chain of command” according to US and coalition officials. This partly stems from Haider al Abadi’s decision to task Badr Organization commander Hadi al Ameri to be in charge of Diyala province’s security. While the MoD has its own chain of command, it is unclear which group’s follow its formal military chain of command. It is not uncommon for militias to refute allegations relating to its separate command structures, as well as their members dispatched into unauthorised military missions outside Iraq’s borders. The lack of transparency makes it difficult to distinguish or draw separating lines between official and unofficial chains of command. Another source verifies the latter, arguing that (1) the PMFs chain of command “at times overrides the prime minister”.

As for salaries, there is no identifiable chain of payment. As one interviewed source distinguished, the “MoD funds the army, while MoI funds PMF’s paramilitary groups and the police” (2). The Hashd Commission is allocated government funds they are expected to be distributed among fighters. There are obstacles, the source interviewed described “a state within a state” (2). While the government of Iraq helps paramilitaries to purchase arms and receive salaries, many of these groups compete against formal chains of command, the interviewee told TI. One can deduce that chains of command and are not necessarily separated, there is a dual chain of command, one for the army, and another for paramilitaries. “Hashd (PMF) seniors are those in control of wage disbursement,” a military affairs expert told TI (3).

The armed forces are considered the largest public sector employer in the country [1]. There is evidence from local news reports that suggest that payments to all public sector employees are made electronically, thus meaning that they are separate from chains of command [2]. There is no evidence to support that chains of command are linked to chains of payment in any way, or to suggest that there are exceptions in the separation between chains of command and chains of payment. However, there are exceptions where the commander-in-chief has authority over things such as bonuses and expenditures related to critical operations [6,7].

Within the Ministry of Defence and the Kosovo Security Forces, the command chain is separated from the payment chain [1]. The Regulation on Salaries in the Kosovo Security Force states that the the Ministry of Defence plans for salaries annually and based on the needs and requests recommended by the Kosovo Government based on the Mid-Term Expenditure [1]. Furthermore, salaries of members are paid on a monthly basis directly into personal bank accounts [2]. This payment system is managed by the Government and administered using an economic budget code developed by the Ministry of Defence [2].
The Regulation on Internal Organisation and Settlement of Job Positions in the Ministry of Defence states that the Sector for Personnel Policy, Retention and Documentation (SPRD) – which functions within the Department of Personnel Policies and Recruitment – drafts the policies and carries out the financial analysis of salaries, compensations, additional allowances, daily allowances and other financial requirements for the Ministry of Defence and the Kosovo Security Forces. This SPRD also drafts the annual budget according to the Medium Term Expenditures Framework for salaries, additional allowances and daily allowances. The Head of this Sector reports to the Head of Department on Personnel Policies and Recruitment within the Ministry of Defence [3].

Chains of command are not separated from the chains of payment. Article 24 of the police law and 27 of the military law gives both ministers the power to allocate the funds given to them by the central Government as they see fit, and it is their job to set up their own system of auditing and regulations to make sure no money is stolen (1 and 2).

These chains of command are separated and the system implemented works well. The issuing of an official order for the payment of bonuses is in violation of Section 11 of the Law “On the Prevention of Conflict of Interest in the Activities of State Officials” according to which a public official is prohibited, in the performance of the duties of a public official, from preparing or issuing administrative acts or other acts in which this public official has a personal or interest interest. In order to avoid conflicts of interest, the decision on the award of bonuses must be made by another senior official or collegiate body. [1] [2]

The chain of command and the chains of payment are not separate. The Finance Unit under the Directorate for Financial and Administrative Affairs handles payments funding for soldiers (1). The Directorate is linked to the Chief of Staff through Decree No. 3771/81 Article 9 (2).
Although the Directorate for Financial and Administrative Affairs handles the monetary funds, the Quartermaster Directorate is responsible for the allocation of the personal salaries of every single MoD employee; it is completely separate from the chain of command (3).

Chains of command are strictly separated from chains of payment, which is overseen and regulated by law: payments and allowances are coordinated by the Ministry of Defence, not by commanders, and basic pay is not discretionary. No media reports suggest that chains of payment are broken [1]. Payment rates of Ministry of Defence officials are published on the Ministry of Defence’s website [2].

The weak budgetary system and heterogeneity of management methods does not facilitate optimal allocation of maintenance funds. Allocations are often channelled to other uses, as highlighted by the embezzlement of military bonuses.³ Overall, the inadequacy of follow-ups and funds for effective upkeep and maintenance threatens the usability and sustainability of new investments provided for in the Ministry of Defence’s budget request.¹
Another weakness of the accounting practice in the military sector is the lack of a division of accounting positions into principal and secondary accountants, as is the case in all other ministries.² Instead, commanders of administrative centres have a dual role with implementation (fund authorisation) and accounting functions similar to those of principal accountants in civilian administration. Similarly, military accountants are not required to be accredited to an official with power to authorize payments. Thus, the principle of separation of authority between officials who authorize payment and those who oversee how money is spent is compromised, with the consequent implications for accountability.²
The Bertelsmann Foundation remarks that steps to improve Mali’s institutional framework returned to the agenda in 2014 and 2015.⁴ It cited a “transformation linking spending systems at the central and local levels, to improve budget documentation and provide up-to-date information on budget execution”. Moreover, medium-term expenditure frameworks have been extended, to translate into budgetary terms the Growth and Poverty Reduction Strategy Paper’s sectorial strategies. But it cautions that “cultivating professionalism among auditors, however, remains a long-term process” in a system that is rife with corruption, informality and unclear delineations of responsibilities.⁴
Accounting practices for non-salary related funds are also open to abuse. In 2017, it was revealed that four gendarmes had allegedly been skimming off 5,000 CFA each month from payments made to gendarmes from the institution’s housing cooperative.⁵ This scam continued from 2004 until 2014, allowing the four gendarmes to amass an estimated fortune of 2.3 billion CFA.⁵
The World Bank notes that “the main risks affecting the payment of wages in the military are at the local level and involve potentially unjustified, and in fact completely irregular, siphoning off in units by supervisors”.⁶

Chains of command are strictly separated from chains of payment. The armed forces provide information about their needs and the Ministry deals with procurement and payments. [1][2] In practice, the armed forces collect information about requirements through the chain of command, and then provides that information to the Ministry. [3]

Chains of command are arguably separate from chains of payment. According to an interviewee, the human resources and financial division work together to send information (a list of paid military personnel) regarding salary payments to the Treasury that has an account at the Central Bank of West African States (BCEAO); it is the chief of fefence (Etat Major) that ensures payment through bank transfers to military personnel, and in some rare cases he also pays in cash (1).
This demonstrates that there is no direct de jure link between the management of human resources and the actual payment of wages. However, de facto it returns to military (chief of defence) to provide the final payment.

Chains of command are separated from chains of payment. The National Defence Policy 2006 posits a change of command for planning and conduct of military operations – from National Defence Council, Minister of Defence, Chief of Defence Staff, to Service Chiefs or Commander of the Joint Taskforce. The government has concluded arrangements to begin the enrolment of all military personnel on the Integrated Personnel and Payroll Information System (IPPIS) July 30, 2018. This aim at integrating all personnel within the system of payment (1), (2).

Following the introduction of the IPPIS, the stated aim is to capture “all” personnel within the system so any exceptions are anomalous given the stated aim (2).

As military personnel are not all yet captured on the Payroll Information System (IPPIS), most payments still flow through the regular military command structure (2).

The chains of command are separated from payment processes. The Finance Directorates of the Ministry of Defence and the Army are responsible for paying salaries and allowances. Military personnel receive their salaries through their personal bank accounts. A decision on salaries, allowances and other benefits for active military and civilian personnel is made by the Minister of Defence or by another authorised official [1]).

There is no separation between the chains of command and the chains of payment. They are connected, and commanders can affect the payments of the soldiers or junior officers (1). Defence institution websites do not publish chains of command or salary grades (2), (3). Wage Protection Systems were put in place in 2017, by the Ministry of Manpower (equivalent to the Ministry of Labour); however, reforms are aimed at the private sector (4), (5). The Employment Law, RD 35/2003 sets out rules around salaries, Article Two states that it does not apply to the armed forces (6). There is no evidence to suggest that chains of command are separate from chains of payment.

IGenerally, the chain of command is separated from the chain of payments (2). However, the commanders influence the chain of payments within their units, agencies or offices. According to the Military Service Law, commanders have power over some financial matters (1), (2).

The chain of payments in MoD – the Administrative Department – is under control of the MoD director-general, it is independent and separated from the chain of command [1]. The payment system is defined in the Law on Professional Military Service (Art. 74) [2]. Lower level wages are paid by specialised entities that deal with all financial issues that pertain to military units. For example, three support units of the Warsaw Garrison Command deal with the logistics of 300 units subordinated to MoD [3].

The chair of the command is separated from the payment system. However, the command can intervene in some cases such as fining, punishment or the increase of bonuses. The general idea is that they are separated and work independently from one another. [1,2]

The Saudi government does not publish details relating to its payment processes in the military or government ministries, except for occasional announcements of bonuses for military and other personnel (1). According to a Gulf affairs expert, chains of command are not separated from chains of payment (2). Three other sources have also highlighted that the payment chains are not separated from the chains of command. They are well connected, and commands can alter the payment of personnel through their authority (3), (4), (5).

The system of personnel payment appears routine throughout most of the government. Many Saudi ministries employ multinational government services firms to design systems for payroll processing and other administrative functions. The Ministry of Interior contracted with TCS (Tata Consultancy Services), which utilizes the well-known Oracle E-Business Suite of applications to administer payroll and other personnel management tasks (6).

However, according to information published by the Ministry of Defence, under its new organizational structure, the military chain of command is separated from support service functions. For example, strategic affairs, technical and administrative services, and procurement units are separate (7). The literature does not refer to the chains of payment of salaries.

Chains of command are strictly separated from chains of payment throughout the ministry and armed forces. According to the Law on Serbian Armed Forces, the government determines the base salary calculation, whereas the defence minister defines coefficients for salary calculations, conditions and criteria for increase or decrease of a salary, salary payment etc [1].
The accounting service, situated within the MoD’s Budget and Finances sector, calculates salaries and allowances of military staff and transfers the payments to their bank accounts [2].

According to our sources, there is a strong separation between the financial and administrative command and the operation commands within the MoD, however, they all work under the Minister of Defence(1,2). In accordance with article 13 of Decree n° 79-735, dated 22 August 1979, on the organisation of the Ministry of National Defence, the General Directorate of Administrative and Financial Affairs is responsible for mandating or authorising the expenditure of personnel, or the administrative and financial affairs of the personnel of the Ministry of Defence. The Directorate of Personnel and Training is responsible for other aspects of military personnel management (Article 18 of the same Decree) (3).In its response to GI 2015, the Ministry of Defence affirms that the General Directorate of Administrative and Financial Affairs is responsible for mandating or authorising the expenditure of personnel, and for the administrative and financial affairs of the personnel of the Ministry of Defence. The directorate is not included in the chain of military command and refers directly to the Minister of National Defence (4). Despite extensive research, no other sources related to this issue, such as reports from the media, or civil society, could be found (5).

Chains of command are not strictly separated from chains of payment. It is the state secretary who defines the size of allowances and bonuses at the proposals of heads of departments. The salary of civil servants within the MoD is comprised of several components such as the basic salary (depends on the serviceman`s position), wage premium, monthly arrears payment, etc. Salaries are fixed depending on the position of the civil servant, but they can sometimes vary within brackets (for instance: salary for position “A” according to the military unit “B” job pattern varies from 900 UAH to 1200 UAH). Although commanders have a certain influence on this kind of variation of salaries, the General Staff is set to abolish this practice, and the salary will not be subject to this kind of influence. Wage premiums specifically fall under the influence of commanders. Although the legislation requires a decrease in wage premiums, commanders still use these [1, 2].

Research has revealed that the chains of command are strictly separated from chains of payment throughout the ministry of defence and armed forces. The UAE government has put in place a Wages Protection System (WPS), developed by the Central Bank of the UAE, which allows the Ministry of Labour to create a database that records wage payments to guarantee the timely and full payment of agreed-upon wages (1). The WPS is activated at all institutions registered with the Ministry of Labour across all sectors and industries, and the system also guarantees that payment is processed independently from the chain of command in all sectors, including the defence sector (2), (3).

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