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Building Integrity and Reducing Corruption in Defence

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Building Integrity and Reducing Corruption in Defence Building Integrity and Reducing Corruption in Defence A Compendium of Best Practices The publication of this Compendium is supported by NATO and the Swiss Ministry of Defence Building Integrity and Reducing Corruption in Defence: A Compendium of Best Practices Geneva Centre for the Democratic Control of Armed Forces (DCAF) www.dcaf.ch The Geneva Centre for the Democratic Control of Armed Forces is one of the world’s leading institutions in the areas of security sector reform (SSR) and security sector governance (SSG). DCAF provides in-country advisory support and practical assistance programmes, develops and promotes appropriate democratic norms at the international and national levels, advocates good practices and makes policy recommendations to ensure effective democratic governance of the security sector. DCAF’s partners include governments, parliaments, civil society, international organisations and the range of security sector actors such as police, judiciary, intelligence agencies, border security services and the military. 2010 Building Integrity and Reducing Corruption in Defence: A Compendium of Best Practices Geneva, 2010 The following persons participated in the production of the Compendium of Best Practices in Building Integrity and Reducing Corruption in Defence Editorial Board Philipp Fluri (DCAF), Adrian Kendry (NATO), Simon Lunn (DCAF), Mark Pyman (TI-UK) Editor and Lead Author: Todor Tagarev (Bulgaria) Contributors Jean-Jacques de Dardel (Switzerland) – Foreword, Francois Melese (US) – Chapters 2 and 9, Adrian Kendry and Susan Pond (NATO) – Chapter 3, James Greene (US) – Chap- ters 5, 16 and 22, Mark Pyman (UK) – Chapter 8, Aditya Batara (Indonesia) – Chapter 11, George Lucas (US) – Chapter 12, Alxandre Kukhianidze, Tamuna Karosanidze, Nina Khatiskatsi and Alexander Scrivener (Georgia) – Chapter 13, Anne-Christine Wegener and Mark Pyman (TI-UK) – Chapter 14, Leonid Polyakov (Ukraine) and James Greene (US) – Chapter 17, Wim F. van Eekelen (The Netherlands) – Chapter 18, Valeri Ratchev (Bul- garia) – Chapter 19, Alice Eldridge (Lockheed Martin Corporation) – Chapter 20.1, Domi- nique Lamoureux (Thales) – Chapter 20.2, Ian Davis (UK) – Chapter 21, Nickolay Slatinski (Bulgaria) – Chapter 24. Some of the boxes in the text were contributed by other authors as follows: Maciej Wnuk (Poland) – boxes 7.2, 17.4 and 17.6; Elisabeth Wrigth (US) – box 7.6; Leonid Polyakov (Ukraine) – box 16.2; Sami Faltas (The Netherlands) – box 23.6; Velizar Shalamanov (Bulgaria) – box 24.2; Todor Tagarev – boxes 2.4, 8.2, 9.4, 9.5, 9.9, 12.1, 12.2, 12.3, 12.4, 17.1, 19.5, 20.1, 20.2 and 24.1. Language Editor: Ashley Thornton Disclaimer The views and examples presented in this Compendium are the personal responsibility of the authors and do not necessarily reflect the official position of either NATO or the Geneva Centre for the Democratic Control of Armed Forces. Original version: English, Geneva, 2010 © Geneva Centre for the Democratic Control of Armed Forces, 2010 Executive publisher: Procon Ltd., www.procon.bg Cover design: Hristo Bliznashki ISBN 978-92-9222-114-0 FOREWORD One of the less heralded benefits of the watershed changes in the international secu- rity equation—enabled twenty years ago as a result of the demise of Soviet rule—has been the reappraisal of the notion that the end always justifies the means. The end purpose of all defence efforts shifted from withstanding and defeating a known mighty enemy to ensuring wider security in an unstable and multipolar world. Concomitantly, new light was shed on the means to achieve a more comprehensive security. New no- tions such as human security and good governance became more central in the efforts of governments and the international community to help the transition from a Cold War posture to better working societies confronting the challenges of globalisation. NATO and its member states contributed to this evolution. The alliance opened it- self up to new partnerships and memberships. As it started adapting its structures, as member states downsized and reoriented their armed forces, more and more attention was also devoted to the pressing reform needs of its potential future members and ac- tive partners. The reform of the security sector was first encouraged among NATO’s former potential foes. But as reforms progressed, a wider approach was taken to the full range of transformations underway. These range from the parliamentary oversight of the armed forces to the furtherance of international humanitarian law, as well as the many necessary interactions between the military and civilians, defence institutions, police, civil society, international organisations and NGOs. This much wider approach to the workings of the security sector and all its actors soon led to a better understanding of what it takes to optimise security and maximise returns on political, economic and social investments in the stabilisation of conflicts and tensions. Ethics were better seen as being instrumental in furthering the end goal of lasting security. NGOs such as Transparency International (TI) rose to new levels of acceptance and respect and a number of governments decided to focus more keenly on the promises borne by a new spirit of openness and efficiency. A new initiative was thus launched within the EAPC/PfP framework, whose title is self-explanatory: Building Integrity and Reducing Corruption Risk in the Defence Establishments. This initiative and its related Trust Fund, led by Poland, Switzerland and the United Kingdom, are an important part and extension of the Partnership Action Plan on Defence Institution Building (PAP-DIB) chapter of cooperation established some years ago after the Istan- bul Summit. The needs in this field appear to be considerable and must be taken into account in the new areas of operation of NATO and some of its partners. The work undertaken under this heading by the NATO International Secretariat and the participating countries has from the start been enabled and strengthened by exter- nal actors such as TI, the Defence Academy of the United Kingdom and the Geneva v vi Foreword Centre for the Democratic Control of Armed Forces (DCAF), which has produced the present Building Integrity Compendium. Indeed, DCAF has developed expertise in matters related to transparency building, expressed in a good number of publications, among which are the Handbook for Parliamentarians co-published with the Inter-Par- liamentary Union in some 50 languages, as well as the DCAF-NATO Parliamentary Assembly handbook “Oversight and Guidance,” now under revision and slated to be re-published in 2010 as yet another Swiss PfP contribution. More generally, DCAF’s commitment to the PAP-DIB action plan is evidenced by manifold contributions and inputs in a wide number of cases benefiting individual countries as well as the Euro- Atlantic community as a whole. Together with the Geneva Centre for Security Policy (GCSP), as well as the abovementioned partners, DCAF has organised a number of seminars and conferences to take stock, reveal best practices and launch integrity in defence management programmes. Alongside its NATO partners, the Swiss government, for its part, is committed to supporting DCAF and the GCSP and to furthering the aims of the PAP-DIB action plan in the fields of integrity and transparency building. The task that lies ahead remains as large and complex as the imperfections of human nature. But the results collectively achieved so far in the fields of defence reform, stabilisation of conflict-prone regions and the extension of international cooperation bear witness to the promise encapsu- lated in this worthy compendium. Ambassador Jean-Jacques de Dardel Head of the Swiss Mission to NATO CONTENTS Part I Introduction...................................................................................................... ...........1 Chapter 1 The Corruption Curse................................................................................................3 Chapter 2 A Strategic Approach to Building Integrity and Reducing Corruption in Defence...13 Chapter 3 NATO and the Evolution of the Building Integrity Initiative......................................22 Chapter 4 National Approaches in Support of Building Integrity and Reducing Corruption in Defence...............................................................................................................31 Part II Corruption Risks and Vulnerabilities in Defence.......................................... .........41 Chapter 5 Personnel Policies...................................................................................................43 Chapter 6 Defence Budgeting and Financial Management ....................................................57 Chapter 7 Defence Procurement .............................................................................................72 Chapter 8 Offset Arrangements...............................................................................................86 Chapter 9 Opportunities and Risks with Outsourcing, Privatization and Public-Private Partnerships in Defence..........................................................................................99 Chapter 10 Utilisation of Surplus Equipment and Infrastructure.............................................112 Chapter 11 The Involvement of Defence Personnel and Assets in Economic Activities..........124 Chapter 12 Integrity Issues Related to Military Operations......................................................135 Chapter 13
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