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Theme: Political

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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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 

A forum tracking progress towards the 2030 sustainable development agenda has been taking place in Niger this week. With matters of security preoccupying policymakers and the public across the region, the moment has come for commitments made by United Nations members to be translated into action.

The aim of the ninth Africa Regional Forum on Sustainable Development is to take stock of how far countries have progressed towards the implementation of five of the Sustainable Development Goals (SDGs), an ambitious set of development targets to be met by 2030.

However Goal 16, “Peace, Justice and Strong Institutions”, is not part of the review, although the security challenges facing countries including Niger, Nigeria and Mali should serve to remind delegates of the urgent need to address corruption-related risks to defence and security.

Goal 16 includes commitments to fight corruption, increase transparency, tackle illicit financial flows and improve access to information to achieve peaceful societies. Without meaningful action to reduce corruption, little progress will be achieved in the five SDGs selected for discussion: Goals 6 (clean water and sanitation); 7 (affordable and clean energy); 9 (industry, innovation, and infrastructure); 11 (sustainable cities and communities); and 17 (partnerships for the Goals).

Corruption, organised crime, the use of illicit financial flows to fund terrorism and violent extremism and forced displacement of people threaten to reverse much development progress made in recent decades. Mali is a case in point. Impunity to corruption, terrorism, drug trafficking and other forms of transnational organised crime undermine stability and development.

In Nigeria, where high-profile elections have been fought in recent days, memories of the deadly End SARS protests continue to linger.

Elsewhere conflicts and instability add to natural disasters, causing untold human suffering. Our ability to prevent and resolve conflicts and build resilient, peaceful and inclusive societies has often been hampered by endemic and widespread corruption.

We must take action and do so by embracing a “whole-of-society approach,” fostering dialogue, cooperation, and partnerships between state and non-state actors to promote transparency, accountability, and effective oversight, in line with Goal 16 of the SDGs.

Failing to take action on SDG 16 following the forum would be a missed opportunity, especially when coordinated efforts and commitments are needed from states in and out of Africa, to address the complex problem of corruption and its threat to human lives.

 

Jacob Tetteh Ahuno, Projects Officer, Ghana Integrity Initiative; Mohamed Bennour, Transparency International Defence and Security Project Manager; Ara Marcen-Naval, Transparency International Defence and Security Head of Advocacy; Bertha Ogbimi, Programme Officer, CISLAC; Abdoulaye Sall, President of CRI 2002

 

Image: Lagos, Nigeria, during the End SARS protests of October, 2020.

The perception of transparency in defence needs to change. Currently, secrecy is often the norm and transparency is the exception. Instead, transparency should be the norm and secrecy the exception.

Despite robust and widely agreed international and national anti-corruption and freedom of information legislation that governs public sectors, the defence sector remains secretive and lacking a fundamental level of transparency that is crucial to ensure accountability. Such legislation frequently contains national security exemptions that are vague, undefined or overreaching and provide defence institutions with a sweeping mandate to classify information by labelling it critical to national security.

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.

As the Munich Security Conference begins today, Josie Stewart, Director of Transparency International Defence and Security, said:

“If Russia’s war in Ukraine has taught us anything, it should be that raising the stakes in the fight against corruption should be high on the agenda at the Munich Security Conference (MSC).

“Energy supply disruptions, Russia, and an economic or financial crisis have been flagged as the top three security risks for leading democracies in 2023. But almost a year after Russia’s invasion of Ukraine, we can expect the MSC, beginning today, to shift its focus back to traditional concepts of security and defence.

“In this context, it has never been more important for leading democracies to take on the fight against corruption as a global security imperative. If the enemy of democracy is corruption, the Western military industry needs to cleanse itself at home before fighting it abroad.

“We look forward to hearing the outcomes of a panel discussion at the MSC organised by Transparency International and the Basel Institute on Governance.”

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 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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Responding to the announcement of a new Agenda for Peace, Josie Stewart, Director of Transparency International Defence and Security, said:

“We welcome United Nations Secretary General Antonio Guterres’ promise of a new Agenda for Peace in 2023, to address the challenge of dramatically evolving conflicts. We hope the Agenda will address the role of corruption in perpetuating conflict, and the accountability challenges in relation to non-state actors, including private military and security companies.”

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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.

Private Military and Security Companies (PMSCs) are a growing presence globally. They act as ‘shadow armies’, operating without transparency and free from legal accountability for their actions in conflict zones around the world.

Since the US-led wars in Afghanistan and Iraq, the industry has expanded from an estimated value of US$100 billion in 2003 to US$224 billion in 2020.

Such is the power PMSCs wield, there is an urgent need for United Nations members states to collectively commit to regulate, investigate and prosecute misconduct by these firms.

It is against this backdrop that Transparency International Defence and Security is bringing policymakers together at a hybrid event, open for registration now, to highlight this issue and catalyse change.

Many of the largest PMSCs were founded in the United States and Europe. But sophisticated PMSCs are increasingly being established in a variety of countries ranging from Australia to China, India to Israel, and Turkey to the United Arab Emirates (UAE). The Russian Wagner Group is operating in many African countries and the network’s grip on matters of national security is tightening.

PMSCs are not merely providing ‘bodies’ and direct combat services. They sell services such as intelligence, surveillance and cyber security. This expansion in services has elevated corruption and conflict risks in many countries with critically weak protection to guard against defence and security sector corruption.

Required response

In response to these trends, a United Nations Intergovernmental Working Group on PMSCs is debating an international framework to regulate their activities.

Currently the internationally supported but non-binding Montreux Document encourages countries to refrain from hiring PMSCs that have a record of engaging in bribery and corruption, among other crimes. While it is a step in the right direction, it lacks teeth.

Some countries, such as the United States, Australia and New Zealand are also exploring new regulations and laws at national level.

These are positive moves. However, until international and national legislation is formally agreed upon, the kind of law-breaking carried out by PMSCs such as land grabs facilitated through corruption and violence against civilians,  documented in our latest research paper, will continue.

In Washington this month Transparency International Defence and Security will be convening a workshop to galvanise international support for anti-corruption standards for PMSCs. Chaired by Transparency International co-founder Peter Conze, the event is being held as part of the influential International Anti-Corruption Conference.

We will be making the case for the UN to establish:

  • Clear complaint mechanisms and standards to protect whistle blowers
  • A requirement of reporting on beneficial ownership of PMSCs and subcontracting by PMSCs
  • Increased transparency of contracts and enhanced reporting on exports of PMSC services to enable external oversight and accountability, including procurement and transfers of weapons and equipment in line with arms control requirements
  • Heightened oversight at the higher level of states institutions. For example, the State and Defense Department should establish accessible whistleblowing channels and regularly monitor their use, at a minimum

As the event is being held in Washington, we will also share a roadmap for progressing US legislation, highlighting the need for:

  • The definition of defence services to be expanded to include combat activities and potentially intelligence services, so that US companies and individuals must obtain US government authorisation (or a licence) to export such services
  • More detailed reporting to Congress on defence service exports, including listing the specific types of authorised defence service and associated dollar value for each country
  • Enhanced policy guidance for the State Department to assess the risks of corruption before approving a contract or license for PMSC services abroad

It’s time for PMSCs to be brought out of the shadows. Join us.