Is Corruption in the Defence Sector Inevitable?
Friday, 11 March 2011
By Leah Wawro of TI’s Defence and Security team
It’s true that the defence sector has a higher risk of corruption than many other sectors. But it’s no longer inevitable that the world must put up with significant corruption in the defence and security industries.
One of the reasons for this optimism is the success of a handbook produced two years ago, and recently updated, by the Defence and Security team at Transparency International. According to Mark Pyman, leader of the team, the world has moved on from asking ‘why is defence corruption a significant problem?’ to ‘so what should we do about it?’
The handbook discusses how to diagnose corruption risks in defence and security establishments and suggests how to do go about reducing them through practical reforms. It shows busy decision makers how significant progress can be made in tackling corruption risks in defence and security.
So strong was the positive reaction to the first handbook, that a second edition building on the first was launched this month. It draws on the lessons learned by the TI defence team working with the first edition in military and defence establishments here and abroad.
The second edition Building Integrity and Reducing Corruption in Defence and Security: 20 Practical Reforms was launched on 8 March at a Chatham House event chaired by Lord Robertson of Port Ellen, the former Secretary General of NATO. He’s a long-time supporter of TI’s defence programme. Four speakers, including Mark Pyman, gave presentations to mark the occasion.
Pyman was optimistic about the changes taking place in the realm of defence and security anti-corruption. He stressed that tackling corruption is not a losing battle—it has been done, even in challenging, post-conflict countries like Liberia, Rwanda, and Serbia.
Avgustina Tzvetkova, Deputy Minister of Defence of the Republic of Bulgaria also spoke positively about the changes in Bulgaria. The country has seen significant reform, in part through partnership with NATO and Transparency International’s Building Integrity Programme. Bulgaria’s ministry of defence has made major reforms since the inauguration of a new government in 2009, and Tzetkova emphasized the importance of strong political will and a clear and practical strategy.
Sir Stewart Eldon, former UK Permanent Representative to NATO, praised the handbook’s second edition as 'some of the world’s best practice in its field'. He noted that the increase of recommended reforms from ten to 20 reflects the growing knowledge of defence corruption issues. Afghanistan has brought the subject to the fore, and Eldon echoed Pyman’s statement that awareness of defence corruption’s devastating consequences, and willingness to address it proactively, has increased.
Sir Ian Andrews, Chairman of the Serious Organised Crime Agency, discussed the links between organised crime and defence corruption.
'Where there is corruption, organised crime is never far behind,' he said. '…Wherever corruption is taken seriously, so too is the threat from organised crime.' He called for closer engagement between law enforcement agencies and civil society bodies like Transparency International, in order to combine their strengths and tackle corruption and organized crime jointly and thus effectively.
Several members of the audience asked thought-provoking questions. A lawyer discussed whether alternatives to traditional penalties should be used in prosecuting cases of defence corruption—rather than using sanctions - allowing companies to continue to operate as they pay settlements. This was well-received by Pyman, who said that working with companies, rather than just advocating prosecution, has proven successful. Both Pyman and Eldon noted, however, that prosecution is vital in countering corruption, particularly because it indicates a strong commitment to reform.
Another audience member asked Tzvetkova about regional cooperation on defence corruption issues and countering organised crime. She responded that Bulgaria hopes to lead the region on this, and has been cooperating with other members of the South-Eastern Europe Defense Ministerial process (SEDM). A question was raised about the Bribery Act, and the potential impact of including hospitality and so-called ‘grease payments.’ All members of the panel expressed support for the Act. Pyman stated that he does not feel the Bribery Act would hamper the British defence industry, and said it will be a major step forward in reducing corruption. In fact, Pyman noted that in his conversations with members of the defence industry, they have been supportive.
If you are interested in receiving a copy of Building Integrity and Reducing Corruption in Defence and Security: 20 Practical Reforms, please contact the defence and security team.
To read Sir Stuart Eldon's speech click on the attachment.
 Sir Stuart Eldon's speech 8.03.2011.pdf | 25 Kb |