Copyright: Asia Views/Tempo, 30th October, 2012

After the crash of a Hawk fighter jet in Riau, the Indonesian military has published statistics about the state of its military equipment. Only half of its 234 combat aircraft are airworthy. In the Navy, only 76 of its 317 vessels are operational, and only 39 of their 65 surveillance aircrafts can be used. Military officials lament the influence of brokers in arms deals, which allows too much focus on satisfying business partners rather than acquiring much-needed strategic equipment. This case exposes many of the pitfalls associated with the procurement of defence equipment.

Read full article: http://www.asiaviews.org/column-a-commentaries/3-column-a-commentaries/40067--weapons-of-mass-corruption

Copyright: AFP, 29th October, 2012

Former Bulgarian Defence Minister Nikolai Tsonev was found guilty of trying to bribe a prosecutor. Although the court initially demanded a sentence of seven years in prison for Tsonev, it later found that there was not enough evidence to take him to jail. The former Defence Minister’s arrest in 2012 reached the headlines, as the prosecutor referred to him as “an absolute criminal” and ordered him to kneel.

Read full article: http://www.focus-fen.net/index.php?id=n291041

Copyright: Manufacturing Business Technology, 26th October, 2012

An investigation showed that Mitsubishi Electric Corporation has been charging the Japanese Ministry of Defence extra for multiple decades. The government has still paid them 111.8 billion yen (USD 143 million) since suspending official contracts, as, ‘there are no other companies that can repair and manufacture such products.’ This highlights an important risk in procurement: single-sourcing. Despite Mitsubishi’s transgressions, the Japanese Ministry of Defence depends on Mitsubishi’s expertise.

Read full article: http://www.mbtmag.com/news/2012/10/mitsubishi-overcharges-defense-ministry-1970

Copyright: UPI, 26th October, 2012

An investigation has been opened in an appeals court in Cairo to look into claims that Supreme Council of the Armed Forces’ (SCAF) members were corrupt and violent towards civil society between January 2011 and the election last June. There have been reports that police abuse has been "endemic" since the 2011 revolution. The article stresses this could be the first serious post-revolutionary step at addressing military impunity.

Read full article: http://www.upi.com/Top_News/Special/2012/10/26/Egypt-investigates-police-military-abuses/UPI-30391351266437/#axzz2CrxHlJ1E

Copyright: The Sunday Times (£), 14th October, 2012

A three-month investigation from the Sunday Times uncovered top ranking retired military officers in the UK bragging about their influence to win contracts for defence companies. Secret recordings evidence the revolving door between the UK Ministry of Defence (MOD) and defence companies, as these officials offered to secure deals through their access to ministers and former colleagues, charging six-figure sums for the fix. Although the “generals for hire” article mentions four UK high-ranked officers and their detailed involvement in the scandal, they all deny any wrongdoing. The UK MOD launched an investigation into the allegations.

Read full article: http://www.thesundaytimes.co.uk/sto/news/insight/article1147765.ece

Copyright: Think Africa Press, 28th September, 2012

Although the official explanation for the crash of three Ugandan military helicopters in 12 August was “bad weather”, this article claims that the fact that the MOD has launched an investigation into the causes of the accident suggests there could be deeper reasons. Uganda’s history of corrupt procurement of dated defence equipment at inflated prices may have something to do with it. Experts have pointed out that the life span of that model of helicopters is only 20 years bearing good maintenance, but it is estimated the helicopters involved in the crash may be older. Also, the fact that the probe is led by General Salim Saleh – who may have been involved in the deal to buy these aircraft in the first place – risks compromising the findings of the investigation.

Read full article: http://thinkafricapress.com/uganda/helicopter-crashes-still-unresolved-mount-kenya

Copyright: Sydney Morning Herald, 27th September, 2012

During an on-going bribery investigation, it was alleged that Australia’s largest defence firm, Tenix, created secret offshore bank accounts. Tenix is being investigated after paying for senior officials from the Philippines to fly to Australia and back to secure a shipbuilding contract. Under Australian law, any benefit offered to a foreign official for a business gain is illegal. The broader implication is that Tenix moved this money to make it available for further payments to Filipino officials to speed deals along.

Read full article: http://www.smh.com.au/opinion/political-news/defence-firm-operated-secret-bank-accounts-20120926-26lxe.html

Copyright: BBC, 6th September, 2012

The French defence company was found guilty for bribing Nigerian officials to secure a contract between 2000 and 2003. Safran was fined 500,000 Euros, after the court found the company authorised bribes between 22,000 and 36,000 Euros to seal the deal.

Read full article: http://www.bbc.co.uk/news/business-19498916

Copyright: Reuters TrustLaw, 21st August, 2012

Finnish defence company Patria and the Slovenian government have agreed to cancel a USD 349 million contract for tanks in the midst of corruption investigations involving both parties. Although Patria stated the termination of the deal was part of normal business and nothing to do with the probe, the company is under investigation for bribing officials in Croatia and Slovenia. Janez Jansa, Slovenia’s Prime Minister, is on trial charged with bribery in connection with the same deal. He has denied any involvement in corrupt activity.

Read full article: http://www.trust.org/trustlaw/news/slovenia-ends-controversial-finnish-arms-deal

Copyright: AFP, 21st August, 2012

The chief executive of Czech vehicle manufacturer Tatra, Ronald Adams, was charged with corruption involving a USD 135 million contract in 2008-2009. In 2010, former Czech Defence Minister Martin Barak – who was also being investigated for the same case – accused Adams of trying to bribe him.

Read full article: http://www.google.com/hostednews/afp/article/ALeqM5hBOadJvb3uaOwhSehkclIL5crWUw?docId=CNG.6213cc6c6c34f5348dd39955badeb004.a01

Copyright: New York Times, 20th August, 2012

The New York Times uncovered that two former partners of arms trafficker Victor Bout tried to start an arms smuggling enterprise in Mauritius. It appears that the island allows illegal arms trade to flourish, from its offshore banking attributes to loopholes such as the provision of air operation certificates, which would allow traffickers to lease planes in one country to use them in another, easing the smuggling process.

Read full article: http://atwar.blogs.nytimes.com/2012/08/20/what-mauritius-can-teach-us-about-the-global-arms-trade/

Copyright: Financial Times (£), 15th August, 2012

A new aspect in the convoluted EADS corruption scandal involving bribes in a Saudi contract for communications and surveillance equipment by subsidiary GPT, was uncovered by the Financial Times in August. It was reported the defence giant had been alerted five years ago about questionable payments of £11.5 million (USD 18 million) resulting from this deal, which were made to an account in the Cayman Islands.

Read full article: http://www.ft.com/cms/s/0d99a2ae-e562-11e1-9a2f-00144feab49a,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F0d99a2ae-e562-11e1-9a2f-00144feab49a.html&_i_referer=http%3A%2F%2

Copyright: CNN, 8th August, 2012

Four high-ranking officials from the Mexican military have been arrested and charged after accusations of ties to drug cartels. The accusations include a former deputy defence secretary helping to protect the Beltran Leyva Cartel, which has since disintegrated. These allegations, however, mark a glaring change, from largely low-level bribery conducted between cartel members and local police forces to federal level corruption. Mexico’s new president, Enrique Pena Nieto, will face significant and urgent challenges upon entering office, especially curbing the death toll which has risen to over 47,500 since 2006.

Read full article: http://edition.cnn.com/2012/08/01/world/americas/mexico-military-corruption/index.html

Copyright: Committee to Protect Journalists, 30th July, 2012

Two journalists with the South African Newspaper 'Mail & Guardian' are being investigated over possession of a police deposition which connects the South African president spokesman Mac Maharaj with a corruption probe into the infamous USD 5 million arms deal South Africa agreed upon in 1999. The Committee to Protect Journalists called for an immediate cease of the probe into these reporters’ work.

Read full article: https://www.cpj.org/2012/07/south-african-journalists-questioned-over-scandal.php

Copyright: Defence Web, 15th June, 2012

The chair of the commission to investigate the 1999’s arms trade deals in South Africa is defending the strength of the commission. There are suggestions that the Ministry of Justice may intervene in the commission to give it more legal expertise.

Read full article: http://www.defenceweb.co.za/index.php?option=com_content&view=article&id=26242:arms-deal-inquiry-will-have-teeth-seriti&catid=54:Governance&Itemid=118

Copyright: Ammon News, 12th June, 2012

The former Chief of Jordan’s General Intelligence Department, Mohammed Dahabi, will go on trial for embezzlement, money laundering, and exploitation of public office. His assets have been frozen and he has been prevented from traveling outside of Jordan. However, questions have been raised about the fairness of the trial; the former deputy head of Jordan’s Anti-Corruption commission referred to it as “a highly politicised case.”

Read full article: http://en.ammonnews.net/article.aspx?articleNO=16871

Copyright: The Guardian, 11th June, 2012

The militias that brought down the regime of Muammar Qaddafi with the assistance of NATO forces are still engaged in strife between themselves. The current dearth of traditional defence and security services has meant that the primary form of security for civilians is these militias, and law and order have suffered as a result. In addition, this article notes that a plan to distribute funds to militias was “suspended among allegations of fraud and corruption.”

Read full article: http://www.guardian.co.uk/commentisfree/2012/jun/11/libya-unity-democratic-elections?newsfeed=true

Copyright: ISSA Africa, 11th June, 2012

A new version of the bill which would allow the creation of an independent anti-corruption agency in South Africa has been approved by the country’s parliamentary committee on police. This amended version incorporates concerns and proposals made by civil society organisations. The South African Police Service (SAPS) Amendment Bill resulted from a Constitutional Judgement which questioned the independence of the Directorate of Priority Operations (also known as the Hawks), as it found the unit was vulnerable to political interference.

Read full article: http://www.issafrica.org/iss_today.php?ID=1497

Copyright: BBC, 11th June, 2012

Somalis have not been entirely won over by the gains of the African Union troops against Al-Shabab. Highlighting the challenges which peacekeeping operations face in a corruption environment, the article quotes lorry drivers at Mogadishu seaport who think life was better under al-Shabab - less corrupt and more secure, so long as one stayed out of politics. ‘In al-Shabab areas, we don't see guns everywhere… If the government disarmed the militias and got rid of the checkpoints that steal money from us, then we would support the government’ said Mahmood Abdullahi, one of the drivers.

Read full article: http://www.bbc.co.uk/news/world-africa-18392212

Copyright: Reuters, 9th June, 2012

Abhishek Verma, an Indian businessman, has been charged in New Delhi under the Prevention of Corruption Act, in connection with allegations that he exercised influence in preventing the blacklisting of Swiss-based arms company Rheinmetall Air Defence AG. It is alleged that Verma was paid nearly £350,000 in an attempt to prevent the company from being blacklisted. Rheinmetall, who deny any wrongdoing, were placed on a blacklist earlier this year after facing allegations of corruption.

Read full article: http://uk.reuters.com/article/2012/06/09/uk-india-arms-corruption-idUKBRE85809220120609

Copyright: The Daily Star, 8th June, 2012

Former Egyptian president Hosni Mubarak was given a life sentence for the killing of protestors in the 2011 revolution, and for financial crimes. His Interior Minister, Habib al-Adly, received the same sentence. Yet several other leaders were cleared of all charges: Hasan Abd al-Rahman, head of the notorious, Stasi-like State Security Investigations; Ahmad Ramzi, head of the Central Security Forces; Adly Fayyid, the head of Public Security; Ismail al-Shaer, who led the Cairo Security Directorate; Osama Youssef, the head of the Giza Security Directorate; and Omar Faramawy, who oversaw the 6th of October Security Directorate. The security services in Egypt have been known for decades for abusing power with impunity, and for widespread corruption. In post-revolutionary Egypt, divisions have been revealed between reformist security service officers and those opposing reform.

Read full article: http://www.dailystar.com.lb/Opinion/Commentary/2012/Jun-08/176125-egypts-security-chiefs-have-just-gotten-out-of-jail-for-free.ashx#axzz1xIzSTTw1

Copyright: Insight Crime, 7th June, 2012

Bolivian senator Roger Pinto claims he is being persecuted by the government after exposing its links with drug gangs. Although he didn’t mention any specific officials, President Evo Morales’ Movement Towards Socialism (MAS) party accused him of seeking asylum in the Brazilian Embassy in La Paz to escape a standing trial on corruption charges. Pinto claims that every time he has reported corruption, the authorities open a new proceeding against him. His most high-profile allegations have been in relation with the former Interior Minister and Vice-president looking the other way regarding the country’s former top anti-drug official, who is currently in US prison convicted of drug trafficking. US prosectors said that he led a network of corrupt police officials.

Read full article: http://www.insightcrime.org/insight-latest-news/item/2733-bolivian-senator-claims-persecution-for-revealing-govt-drug-ties

Copyright: Insight Crime, 7th June, 2012

Bolivian senator Roger Pinto claims he is being persecuted by the government after exposing its links with drug gangs. Although he didn’t mention any specific officials, President Evo Morales’ Movement Towards Socialism (MAS) party accused him of seeking asylum in the Brazilian Embassy in La Paz to escape a standing trial on corruption charges. Pinto claims that every time he has reported corruption, the authorities open a new proceeding against him. His most high-profile allegations have been in relation with the former Interior Minister and Vice-president looking the other way regarding the country’s former top anti-drug official, who is currently in US prison convicted of drug trafficking. US prosectors said that he led a network of corrupt police officials.

Read full article: http://www.insightcrime.org/insight-latest-news/item/2733-bolivian-senator-claims-persecution-for-revealing-govt-drug-ties

Copyright: Asia Sentinel, 6th June, 2012

A French-owned and Malta-based financial consultancy, Gifen, is under investigation for its role in a controversial USD 1 billion (£639 million) purchase of submarines by the Malaysian government. This article reports on allegations that a portion of a EUR 114 million (£92 million) commission paid to Perimekar Sdn Bhd, formerly under the ownership of Abdul Razak Baginda, a close associate of the Malaysian Prime Minister, may have been laundered through Malta. A number of other companies around the world are also being investigated in connection with this case.

Read full article: http://www.asiasentinel.com/index.php?option=com_content&task=view&id=4571&Itemid=164

Copyright: The Express Tribune, 4th June, 2012

Opposition leader Imran Khan, head of the PTI party, has called for greater civilian oversight of military spending. He further argues that the Rs643 billion (£4.3 billion) defence budget be externally audited. Despite increasing by over 10 per cent over the last fiscal year, defence spending is still a closely guarded secret in Pakistan.

Read full article: http://tribune.com.pk/story/388400/official-reaction-pti-calls-for-civilian-oversight-of-defence-budget/

Copyright: The Republic/ AP, 1st June, 2012

Honduras has a new anti-corruption commission which is responsible for cleaning the country’s judicial system and national police of corrupt officials. Honduras’ President Porfirio Lobo claimed both institutions have been infiltrated by drug traffickers: "We're tired of not having a (security) system in which its members ensure justice and give confidence to the people," he said. This year Lobo has already replaced two police chiefs and a security minister due to the lack of improvements in security for the country, which in 2010 had the world’s highest homicide rate with 6,200 killings, or 82.1 homicides for every 100,000 inhabitants.

Read full article: http://www.therepublic.com/view/story/8bc47c56e21141ebad4858d3aae94fbd/LT--Honduras-Corruption

Copyright: London Evening Standard, 30th May, 2012

A British firm has been accused of bribery related to a £2 billion defence deal with Saudi Arabia. The company supplies communications equipment to the Saudi National Guard. Allegations were made that £14 million were paid into two offshore bank accounts in the Cayman Islands by the company in question. The Serious Fraud Office is investigating claims by the whistle-blower and former director of the company’s programme with Saudi, who was dismissed from his post after claiming that these payments were bribes.

Read full article: http://www.standard.co.uk/news/uk/whistleblower-accuses-british-firm-of-14m-bribe-over-2billion-saudi-deal-7804050.html

Copyright: Naharnet, 29th May, 2012

The house of former defence minister Akis Tsochatzopoulos, who was arrested in April for corruption allegations, has become one of the main tourist attractions in Athens. "After the Acropolis museum, this has unfortunately become the second main attraction here -- the home of a corrupt minister," said one young Greek outside the lavish mansion in the upmarket neighbourhood where the former defence minister used to live.

Read full article: http://www.naharnet.com/stories/en/41746-greek-ex-minister-s-home-now-a-monument-to-corruption

Copyright: The New York Times, 29th May, 2012

Mexico’s former Deputy Minister of Defence and three high-ranked Mexican Army officers have been arrested for alleged ties with the same threat they lead the fight against: organised crime. Amid what has been described as the biggest military corruption case in the country in recent years, the officers are suspected of taking bribes for passing information to the Beltran Leyva drug gang. According to the article, the arrests have reawakened concerns about how closely the military might be linked to the drug cartel, one of the top cocaine traffickers to the US.

Read full article: http://www.nytimes.com/2012/05/30/world/americas/mexican-army-case-adds-to-us-unease-in-drug-war.html?_r=3&ref=americas

Copyright: Yemen Times, 29th May, 2012

For the 2012 Yemeni national budget, USD 1.4 billion (£894 million) has been allocated for defence and security spending. The defence and security budget has traditionally been non-transparent, despite the amount spent in this area. According to Mustafa Nassar, Chairman of the local think tank Studies and Economic Media Centre (SEMC), corruption is high in part due to a lack of oversight: “there is a constitutional article that bans the monitoring of the defence and security budget.”

Read full article: http://www.yementimes.com/en/1572/report/850/Military-spending-after-the-revolution.htm