Procurement Risk:
Critical
Score:
3/100
Government Policy
Q57
0/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. There is no public procurement law in Myanmar. In 2014, the Deputy Attorney General…
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There is no defence-specific legislation that covers defence and national security procurement. No public procurement legislation at all could be identified in Myanmar.
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There is no defence-specific legislation that covers defence and national security procurement. As such, this indicator is marked ‘Not Applicable’.
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Q58
0/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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As Myanmar’s military normally handles its affairs internally, the procedures and processes of the Office of the Auditor General as an oversight mechanism lack…
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There is no formal procedure for the public to access information about the defence procurement process. As Myanmar’s military normally handles its affairs internally,…
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In 2016, there was a confrontation between military representatives and MPs from the NLD party due to the violation of asset disposal procedures [1].…
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Q59
8/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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The Office of the Auditor General under the Ministry of Defence acts as an internal oversight mechanism [1]. However, in the absence of democratic…
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The Office of the Auditor General under the Ministry of Defence is tasked with acting as an internal oversight mechanism [1]. The Office of…
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As Myanmar’s military normally handles its affairs internally, the procedures and processes of the Office of the Auditor General as an oversight mechanism lack…
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The Defence White Paper does not include future procurements [1]. A National Strategy and Defence Policy is mentioned in the Defence White Paper [1],…
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There have been some announcements made by the military about its future purchases, but defence purchases are normally made in secret and planned purchases…
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The military rarely publishes its actual defence purchases. The responsible person at the Ministry of Defence explains the MoD’s defence spending to Parliament on…
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The Myanmar military is always secretive about its military purchases and never publishes them publicly. There is only one Defence White Paper, published in…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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There are no laws detailing standards or procedures for defence procurement. There may be procedures for defence procurement, but these are not available to…
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There are no laws detailing standards or procedures for defence procurement. As such, this indicator is marked ‘Not Applicable’.
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Q63
0/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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The Defence White Paper (2015) addresses the National Defence Policy and the Defence Strategy, which is based on the People’s War Strategy, but does…
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Myanmar does not have a procurement law [1]. Neither MPs from Parliament nor the Auditor General have the power to scrutinise the military’s defence…
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The Defence White Paper (2015) addresses the National Defence Policy and the Defence Strategy, which is based on the People’s War Strategy, but does…
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Tender Solicitation, Assessment and Contract Award
Q64
NEI/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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Myanmar’s military mostly makes its defence purchases in secret and rarely makes them public [1]. As a consequence, Myanmar’s defence market is not transparent…
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Myanmar’s military has its own audit and the Office of the Auditor General lacks the power to scrutinise defence spending; one source indicated that…
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Q65
0/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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There are regulations issued by the Directorate of Procurement, which manages the tender process in the military [1]. But nepotism and bribery prevail [1].…
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There is an internal audit mechanism exercised by the Office of the Auditor General [1]. This process is not well specified and cannot be…
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MPs have criticised the fact that they cannot scrutinise the Myanmar military’s budget or defence procurement effectively. They also criticised the fact that the…
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There is an internal audit mechanism exercised by the Office of the Auditor General, however, external actors are prohibited from auditing the defence sector…
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Q66
0/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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There is the Anti-Corruption Law in Myanmar, enacted in 2014. However, this law cannot regulate military activities because of Article 20(b) of the Constitution,…
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There is no legislation that applies to the defence sector in which collusion is prohibited. As such, this indicator is marked ‘Not Applicable’.
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As noted in 66B, there is no legislation that prohibits collusion in the defence sector. As such, this indicator is marked ‘Not Applicable’.
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No information could be found to clarify whether training is provided to procurement officials with regards to collusion. As such, this indicator is marked…
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Contract Delivery and In-Service Support
Q67
25/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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There are some procedures for investigating contractors’ services and delivered goods. The relevant procuring entities and respective departments in the military are responsible for…
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A retired military officer said that certain military contracts and tenders, especially those concerning armaments, cannot be made public [1]. A military contractor also…
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The Directorate of Procurement has a monitoring mechanism, whereby personnel from the respective military departments inspect deliveries and procurement officials ensure that contractors meet…
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Inspectors from the respective departments of the military can report corrupt activity and unqualified delivery. Sanctions, such as cancelled payment, are imposed on the…
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Q68
NEI/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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A complaint mechanism is known to exist. If the contractor does not agree with the decision of the Directorate of Procurement, they can file…
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The regulations for the complaint mechanism is only available to the contractors and not to the public. We are not able to access enough…
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There have been incidents where contractor companies have complained to the Directorate of Procurement (DoP). The DoP responded to the complaint and the company…
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There is no legislation regulating punishment for corrupt contractors. However, there are guidelines for procurement officials [1]. They cannot directly take action against the…
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This indicator is marked ‘Not Applicable’, as procurement officials have no authority to exclude companies that are implicated in corruption-related offences. There are guidelines…
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This indicator is scored ‘Not Applicable’, given that procurement officials have no authority to exclude companies that are implicated in corruption-related offences. As Myanmar’s…
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Offset Contracts
Q70
NEI/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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The government is entirely excluded from the military’s defence contracts. Article 20(b) of the 2008 Constitution grants the military the power to administer its…
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There is no legal window for the civilian government to intervene in the military’s defence contracts, especially offset contracts, because the military has the…
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The government is entirely excluded from the military’s defence contracts. Article 20(b) of the 2008 Constitution grants the military the power to administer its…
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As there are no policies, procedures, or pieces of legislation in government, transparency is not required or possible.
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As there are no policies, procedures, or pieces of legislation regarding defence offset contracts, there is no information regarding the monitoring of these contracts.
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As there are no policies, procedures, or pieces of legislation in government, enforcement is not possible.
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Myanmar’s military mostly makes its defence purchases in secret and rarely makes them public. As a consequence, Myanmar’s defence market lacks transparency and we…
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Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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Both foreign and local brokers arrange the deals for the Myanmar military’s defence procurement. Myanmar does not have a procurement law [1], meaning there…
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This indicator is marked ‘Not Applicable’, as there is no general prohibition of, or clear restrictions on, the use of agents and intermediaries.
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Financing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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Myanmar’s military mostly makes its defence purchases in secret and rarely makes them public. Therefore, we are not able to access information about financing…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. Under the military junta, China provided legitimacy for Myanmar and was the country’s biggest…
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This indicator is not assigned a score in the GDI. According to Article 20(b) of the 2008 Constitution, the Defence Services has the right…
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This indicator is not assigned a score in the GDI. A few years after the delivery of Chinese military equipment, many Myanmar soldiers complained…
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