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
3.8 Involvement in the country’s economy and politics
Explanation of risk area
Where the armed forces are significant participants in economic and political life of a country, they can distort both. 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. This causes two problems. One, the military is diverted from the primary task of providing security toward economic enterprises. Two, the armed forces can be tempted to influence political life in order to maintain their economic enterprises, and curtail political freedoms and human rights in the process.
This tends to be a strategic-level pathway with operational and tactical consequences for partnering, including lesser effectiveness of the armed forces, a complex web of interests and relationships between military, political and economic actors, and fraught civil-military relations.
Consequences for the mission
Uncertainty over HNDSF commitment to shared goals
Diversion of HNDSF attention and resources to non-security goals, diminishing the effectiveness of assistance
Denial of economic and political opportunities to the population, leading to growing frustration and, in the long term, possibly conflict
Use of donors’ political and in-kind support for economic and political gain
Reputational risks
Examples
External Link
The Officer's Republic: Egypt
Following the Arab Spring, the Egyptian military has used the period of political transition to strengthen its hold on the country’s economy. With access to conscript labour, cheap land and state subsidies, the armed forces have been running hotels, farms, chemical factories and food processing companies. At the same time, the armed forces intervened in political issues, curtailed human and political rights (especially of political opponents), and failed to provide security against growing ISIS influence. While security assistance, especially from the US, continues to be delivered, it does not appear to help make the armed forces more effective.
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Military misuse of civilian land: Pakistan
In Pakistan, the armed forces misused civilian land for commercial purposes such as housing. Army-affiliated charities and foundations such as the Fouji Foundation, Army Welfare Trust, Bahria Foundation, and Shaheen Foundation are registered as charities. With preferential access to state resources, the scale of Pakistani military’s impact on the country’s economy is unclear.
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Military involvement in natural resource exploitation
In countries such as Indonesia and the DRC, the armed forces play a significant role in the exploitation of natural resources: they provide security for mining operations and can support particular factions’ access to natural resource sites. This distorts the economy, dilutes their purpose, and can lead to violence as factions compete for access to resources.
View external case studyIndicators & Warnings
HNDSF protecting political factions
Exceptions from transparency and accountability requirements for armed forces in legislation or practice
Reports of HNDSF or high-ranking officers' ownership or management of commercial enterprises
Diminishing effectiveness of armed forces
Bloated and unaccountable defence budget
Fighting centred around resource-rich areas
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.