Risk Areas

4.4 Asset disposal

Explanation of risk area

Disposal of mission assets, usually coming at a point when international forces are winding down, transitioning or withdrawing, poses significant corruption risks. Withdrawals tend to focus attention on the home country and take it away from the operational theatre, which is no longer a key preoccupation in mission planning.

Indicators & Warnings

Refusal to divulge the identity of beneficial owners and or/company officers, i.e. those who draw benefits from companies and those who direct companies’ actions

Shareholders, owners or company officers who are, or have recently been, public officials (could indicate a revolving door)

Reports of divested equipment in adversary hands

Reluctance of either contracting officers or purchasers to undergo due diligence and/or audit procedures

Interest in asset disposal from host nation stakeholders with no apparent legitimate rationale