Corruption in Defence Leah Wawro 26 November 2012

Agenda 1.Why it matters 2.The TI Defence & Security Programme 3.Defence Companies Anti-Corruption Index 4.Government Defence Anti-Corruption Index

Why defence & security corruption matters Defence officials tell us that corruption: Wastes scarce resources Hurts operational effectiveness Diminishes public trust Defence officials tell us that corruption: Wastes scarce resources Hurts operational effectiveness Diminishes public trust Defence and security sectors are there to protect a country and its citizens. When the sector is corrupt, it can’t do that. High risk: Huge contracts High secrecy Unique corruption risks. Impact on peacekeeping, conflicts Defence and security sectors are there to protect a country and its citizens. When the sector is corrupt, it can’t do that. High risk: Huge contracts High secrecy Unique corruption risks. Impact on peacekeeping, conflicts

TI-DSP Approach National defence & security forces Civil Society Defence Industry Inside: Facilitate discussion Reframe the problem Analysis/action plan Training Build confidence that D&S can be tackled Collaborate on research Expertise Direct engagement Index Establish global forum for a-c standards Research, publicise high risk areas Outside: Measuring and analysing External oversight Work with NATO, UN

Defence Companies Anti- Corruption Index TI assessment Company review and input TI analysis Peer review TI final review  External measure of extent and depth of anti-corruption capabilities and programmes—measuring capability  Aims:  improve standards  benchmark progress  Competition  Based on Typology for good corporate anti-corruption system  A-F banding  35 Questions; 0-2 scoring 133 Companies Worldwide Top 100 global defence companies (2010 defence revenue, compiled by Defence News & SIPRI) Defence revenue of $100 M and a nationality not represented in top 100 Launch: October 4 th

The Defence Companies Index The ability of companies to prevent and tackle corruption risk in the defence and security sector.

Government Defence Anti- Corruption Index What is it? A global Index to measure levels of corruption risk in national defence and security establishments worldwide. A means to monitor the success of anti-corruption mechanisms over time Comparison between countries A project that uses a wide range of input: from National Chapters, Civil Society experts, Defence and Security sector experts, and governments themselves. Methodology An objective questionnaire filled out by an expert independent assessor, reviewed by two independent peer reviewers, a government reviewer and finally a TI National Chapter reviewer. 76 questions, scored on a 5-point scale. Model answers guide assessor’s responses. Using of Global Integrity’s field research software, Indaba. Assessor completes Questionnaire Peer Review x 2Government Review TI National Chapters Review Libel Review Ongoing TI-DSP review and standardisation throughout process

8 POLITICAL Contracts Secret budgets Collusive bidders Technical requirements / specifications Single sourcing Offsets Disregard of corruption in country Agents/brokers Financing packages PROCUREMENT Values & Standards Salary chain Payroll, promotions, appointments, rewards Conscription PERSONNEL OPERATIONS Seller influence Contract award, delivery Asset disposals Military-owned businesses Illegal private enterprisesPrivate Security Companies Corruption within mission Subcontractors Leadership Behaviour Small Bribes FINANCE Defence & security policy Control of intelligence services Export controls Organised crime Nexus of defence & national assets Defence budgets Typology of Defence Corruption Risks

GOVERNMENT DEFENCE INTEGRITY INDEX: QUESTION SCORECARD Question Number: Sources and References: SCORE GIVEN: Score 4: Score 3: Score 2: Score 1: Score 0: N/A: Justification for score: Peer reviewer 1’s comments: Peer reviewer 2’s comments: Govt. reviewer’s comments: TI-NC’s comments:Final, standardised score: Example Question: Has the country signed up to international anti- corruption instruments such as, but not exclusively or necessarily, UNCAC and the OECD Convention? Answer guidelines: 4. The country has signed up to all relevant instruments, there has been formal ratification, and there is evidence of compliant activity. 3. The country has signed up to all relevant instruments, but there is limited evidence of compliance (e.g. partial shortcomings in complying with specific parts of the conventions). 2. The instruments have been signed up to and ratified; there has been no evidence of compliance. 1. The country has signed up to but not ratified all relevant instruments 0. The country has not signed up to the instruments. Transparency International Defence & Security Programme: Government Defence Anti-Corruption Index

Government Defence Anti-Corruption Index Scoring: 1.A-F 2.Integrity scores for each major corruption risk, enabling understanding of where risks are most prevalent. 3.Regional scoring patterns and scores associated with country clusters – i.e. BRIC / N11; Big Spenders; Countries in Conflict. Outputs An online scorecard for each question. A country summary: Key findings, reform recommendations. An overall report: key learnings across the entire index; also MENA-specific report. Spin off research: articles covering country-specific and regional analysis, methodological developments, and typology tests. Advocacy 50 TI National Chapters involved in process—assessment or review Roadmap to Reform; specific, targeted actions National/ regional launches Prompting engagement with MOD: TI Taiwan

Asia Pacific: China, South Korea, Singapore, India, Thailand, Pakistan, Australia, Sri Lanka, Indonesia, Japan, Malaysia, Philippines, Bangladesh, Taiwan, Nepal, Afghanistan Europe/Central Asia: Italy, Greece, UK, Germany, Spain, France, Norway, Austria, Czech Republic, Sweden, Cyprus, Turkey, Russia, Belarus, Poland, Bulgaria, Georgia, Ukraine, Kazakhstan, Serbia, Hungary, Uzbekistan, Croatia, Latvia, Bosnia, Slovakia, Israel MENA: Iran, Saudi Arabia, Jordan, Syria, Egypt, Lebanon, Libya, Iraq, Morocco, Algeria, Bahrain, Qatar, Yemen, Kuwait, Tunisia, UAE, Oman, Palestinian National Authority Sub-Saharan Africa: Angola, South Africa, Eritrea, Ethiopia, Nigeria, DRC, Zimbabwe, Uganda, Kenya, Rwanda, Tanzania, Cote d’Ivoire, Ghana, Somalia, Cameroon Americas: Colombia, Brazil, Chile, Venezuela, Argentina, Mexico, USA Countries: Government Defence Anti- Corruption Index

12 Planned Publications, : Single Source Procurement Police Reform Political Economy & Expeditionary Contracting Military-Owned Businesses Toolkit for Civil Society Defence Corruption Literature Review Research Recent Publications: Single Source Procurement Police Reform Political Economy & Expeditionary Contracting Military-Owned Businesses Toolkit for Civil Society Internal audit and security corruption