3.1 Resource diversion and corruption in the acquisition process
Corruption related to materiel, be that in procurement, logistics, or asset management and disposal, is one of the most frequent forms of illicit activity in the armed forces.
Risk Areas
3.3 Misuse of defence funds: secret expenses
Explanation of risk area
A significant risk can come with any discretionary expenditure that occurs in secret and has little to no oversight. These budget lines are vulnerable to diversion and misuse for private gain.
Consequences for the mission
Diversion and waste of resources
Abuse of civilians and illegal activity
Examples
Case Study: Corruption and Plan Colombia: The Missing Link
Confidential expenses and false positives: Colombia
In Colombia, significant defence budget increases after 2000 included the so-called ‘confidential expenses’, covering spending on intelligence and counterintelligence operations, and the protection of witnesses and informants. While they only constituted a 0.5% of the security budget and were mostly used by the police, confidential expenses have been linked to one of the grisliest forms of defence sector corruption during the Plan Colombia years – the extrajudicial killings of civilians to boost insurgent body counts. There have been allegations that money spent under this budget was used to pay off soldiers accused of these ‘false positive’ killings, in order to buy their silence and prevent them from pointing out senior officers who had also been involved in the schemes.
View case studyIndicators & Warnings
Classified budgets lacking any oversight, even internal
Outcomes or actions whose funding is difficult to explain
Reports of bribes or other forms of corruption
Risk Areas within Risk Pathway 3. Partnering with host nation defence and security forces (HNDSF)
3.2 Bribery and patronage in recruitment and promotions
Both bribery and patronage in recruitment distort a meritocratic process meant to put the best people in particular posts.
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3.3 Misuse of defence funds: secret expenses
A significant risk can come with any discretionary expenditure that occurs in secret and has little to no oversight. These budget lines are vulnerable to diversion and misuse for private gain.
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3.4 Ghost soldiers
Absence of personnel and inaccurate data waste resources, impede operational planning and execution, and can lead to operational failures.
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3.5 Abuse of civilian populations
Whether subject to extortion or in danger of physical harm, the civilian population begins to see the armed forces as part of the problem rather than part of the solution.
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3.6 Links with criminal, paramilitary and insurgent groups
Where armed forces support or lead operations against criminal and insurgent groups, infiltration by said groups – especially when their resources exceed those of particular units – is a very real risk.
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3.7 Provision of healthcare
The complexity of healthcare-related issues, the power imbalance between practitioner and patient, and the multitude of stakeholders involved are only some of the factors that make healthcare susceptible to corruption risks.
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3.8 Involvement in the country’s economy and politics
With preferential access to state resources – from budgets to communications networks to transportation corridors – and an ability to secure incentives such as tax breaks or conscript labour, armed forces which turn to economic activity enjoy an unfair advantage over civilian actors.
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Mitigations within Risk Pathway 3. Partnering with host nation defence and security forces (HNDSF)
1. Getting your own house in order: anti-corruption for mission forces
1.2 Codification and dissemination of ethical standards
1.3 Pre-deployment training and preparation
1.4 Whistleblowing and reporting channels
Strong integrity standards among mission troops and their ability to notice and report corruption can help identify corruption problems among partner forces.
When corruption occurs due to lack of resources or inability to meet basic needs, providing assistance can help change incentives and rationales.
Ensuring that financial flows do not exceed the host nation’s absorptive capacity will diminish the risk of diversion by corrupt networks; tying funding and assistance to improvements in governance can help create momentum for reform.
6. Utilising a comprehensive approach: supporting inter-agency initiatives & shaping incentives
6.1 Supporting civilian initiatives
6.2 Shaping incentives and limiting opportunities: a full spectrum
Supporting civilian initiatives such as reform of the judiciary can help create accountability for the defence and security forces, and using a full spectrum to shape incentives could render corruption less attractive at strategic, operational and tactical levels.
7. Working with civil society: from political inclusion to tactical cooperation
7.1 Formulating political strategies
7.2 Tactical cooperation: project oversight
Civil society organisations can be valuable allies in the fight against corruption, at a strategy-setting level and when attempting to limit low-level corruption that feeds higher-level networks. Their participation is also key to establishing healthy civil-military relations.
8. Reforming Host Nation Defence and Security Forces (HNDSF)
8.1 Supporting security sector reform (SSR)
8.2 Host nation training, partnering and mentoring
8.3 Countering personnel corruption: recruitment, promotions and payroll
8.4 Modernising acquisition processes and resource management systems
These are specific measures targeted at improving the integrity and effectiveness of defence and security forces. Their utility depends on the type of corrupt practices affecting a particular force.
9. Investing in monitoring and oversight
9.1 Overseeing donor funds: Inspector General systems
9.2 Overseeing donor funds: End-use monitoring of equipment
9.3 Strengthening host nation oversight
9.4 Supporting external oversight bodies
Stronger oversight of mission resources will help limit opportunities for corrupt networks, and helping develop host nation or civil society oversight mechanisms will help create longer-term accountability of host nation forces.
Ensuring that the international mission is able to receive and process signals of wrongdoing increases the likelihood of detection and diminishes the appeal of corruption.