This initiative is led by Transparency International UK on behalf of TI. For information on the most current activities, please click here or contact Mark Pyman at mark.pyman@transparency.org.uk.

Why is the defence sector prone to corruption?

Business is largely conducted behind a veil of secrecy. This is justified ostensibly on grounds of national security, but a SIPRI study investigating the barriers to greater transparency found that secrecy worked more in the interest of the officials and the companies than the public purse or security. As a result, the barriers to greater transparency “more often sprang from lack of political commitment than genuine national security reasons.”

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The following are concrete recommendations to work to end corruption in the defence sector.TI is already working in these areas, as can be seen in the section on TI (UK)’s work.

1. Implementing Defence Integrity Pacts

Defence Integrity Pacts (DIP) need to be applied in real situations. These are enforceable anti-bribery pledges signed by all parties to a defence procurement contract and overseen by empowered independent monitors.The DIP should be tailored to suit individual country and procurement needs, applied early and for the duration of the contract. We have learnt valuable lessons from applying a Defence Integrity Pact in Colombia, are shortly piloting a second in Latvia, and are in discussion with other interested governments.

2. Developing a Framework Code of Conduct for the Defence Industry

A critical mass of international defence companies should come together, with the support of TI (UK), to develop a strong framework code of anti-bribery and corruption measures for international defence procurements. This will combine hitherto separate efforts undertaken by American and European industry associations, for a truly global solution to this global issue. Signatory companies can later align their own internal processes to this framework.

3. Exporting country encouragement of their defence industry

Exporting countries should be strongly associated with the anti-corruption initiative given the importance of their role. Defence ministries and their export support organisations need to promote strong anticorruption practices as an important platform for the common competitiveness of European companies.

4. Strengthening anti-corruption measures in regulatory requirements

Anti-corruption assurance must be placed more centrally in arms control regimes, both at national and international level, providing they are carefully targeted, rather than generally adding to the bureaucratic burden.There is a need for OECD Anti-Bribery Convention signatories to enforce the Convention more energetically.

5. Reforming Defence Organisations and Processes

The defence ministries of importing countries should be strengthened with enhanced anti-corruption capability and knowledge.Anti-corruption standards and knowledge can also be disseminated through international organisations such as NATO.

Background resources:

• Working Paper: Addressing Corruption and Building Integrity in Defence Establishments (TI (UK)/TI-Secretariat)
• Preventing Corruption in the Official Arms Trade TI (UK)
• Corruption in the Official Arms Trade TI (UK) policy research paper
• Saferworld, a non-governmental organisation working to prevent armed violence
• The extent of single sourcing and attendant corruption risk in defence procurement: a first look Presented at University of Nottingham Public Procurement Conference, 19th June 2006
• Unicorn – Global Unions Anti-Corruption Network Sector: Defence – Resources
• IMF Working Paper: Corruption and Military Spending by Sanjeev Gupta, Luiz de Mello, and Raju Sharan
• Opinion: Corruption in Arms Trade by Ikram Sehgal of The Nation
• Bribery and Corruption Still Rampant in Global Arms Trade by Frank Vogl
• Some economic aspects of the arms trade speech by Samuel Brittan at Cambridge
• Stockholm International Peace Research Institute
• David Isenberg defence news mailing list: Subscribe

News articles:

• Taiwanese man sentenced in weapons plot
• BBC lifts the lid on secret BAE slush fund
• Bid to end Saudi probe over arms deal threat
• Revealed: BAE’s secret £1m to Pinochet
• Thales investigating judges extend probe into arms deal
• France faces big bill in Taiwan frigate deal
• Indian court demands answers on submarine kickback charge
• CSSD’s empty gesture against corruption (Czech Republic)
• Kuwait documents allege Halliburton bribe scandal
• Ship deal made Githongo to resign, says report
• Alvis: the president's family and the payoffs
• Cashing in for profit? (Boeing-Druyun scandal)
• Congressman admits to taking bribes, resigns (Randy “Duke” Cunningham)
• Blair defends decision to halt inquiry into Saudi defense contacts

Defence Anti-Corruption Digests:

• by the Preventing Corruption in the Official Arms Trade team, the Digests provide news summaries on the latest defence corruption, feature articles, and interviews.Editions 1-5 currently available.

Press releases:

• UK defence industry anti-corruption forum 12 June 2006 – Society of British Aerospace Companies

Related documents and links

• TI’s letter to the Secretary-General of the OECD
• Coalition of civil society organisations’ letter to the British Prime Minister
• Read about The Corner House and Campaign Against Arms Trade (CAAT) legal challenge against the SFO here
• TI´s Press Release on Serious Fraud Office Investigation of UK-Saudi Arabia Arms Deal
• 2006 TI Progress Report: Enforcement of the OECD Convention on combating bribery of foreign public officials
• Eva Joly letter-to-the-editor, The Independent newspaper
• Letter TI Nepal to the Secretary General of the OECD