Assets are economic resources, and include both intangible assets (capital/financial) and tangible assets (buildings, land, equipment, etc.). A 2007 report by the Inspector General of the US Department of Defense showed that in Iraq, US $1 billion in military equipment provided to the Iraqi security forces had gone missing and posed a major risk for diversion at a later point. According to a CBS News Investigative Report, ‘the military could not account for 12,712 out of 13,508 weapons, including pistols, assault rifles, rocket propelled grenade launchers and machine guns’.

Corruption risks exist particularly in countries that are selling or disposing of large quantities of assets, and in conflict or post-conflict countries where military assets cannot be protected. Besides personnel and expertise, equipment and buildings are the most precious assets a defence or security establishment possesses. Within defence and security establishments, there are 6 main categories of assets:

• Single Use Military Equipment: military equipment which cannot be used for civilian purposes. This includes weapons as well as equipment which supports and delivers them, e.g. warships, submarines, fighter aircraft, tanks, missiles and launchers.
• Land and Buildings  (excluding dwellings)
• Assets under construction
• Transport equipment
• Plants and machinery
• Information technology (IT) and communications systems

Land, buildings and weapons are the most commonly reported areas of corruption. Often, as in Iraq, outside actors have contributed to diversion and improper disposal.

The use of surplus equipment and infrastructure is a challenge for all defence and security establishments. When the sale or disposal of surplus equipment and infrastructure is not subject to the same scrutiny as defence procurement, management of equipment and surpluses can involve a very high corruption risk.

Read more about asset disposals in our Handbook, Building Integrity and Reducing Corruption in Defence and Security.

Read more on Financial Risks.

Read more on Our Work.