Illegal Private Enterprises

Illegal private enterprises are a form of misuse of assets, and come about when individuals gain an income from state-owned assets. This may be through the payment of exorbitant fees to cronies for consultancy or other services, or the use of service personnel for private work. It can also include bankrolling of the military by private enterprises in return for military protection of their business interests. The development of a system of patronage between the military and private business is highly detrimental; the more profitable it becomes, the more difficult it is to counter.

When links between business and defence and security establishments are based on personal gain, it is corruption. For example, if a general owns a plumbing company and that company is hired to do work on the barracks, the general receives money due to the connection—not necessarily the quality or cost of the work his company does. In addition, the company, its workers, or its assets may be protected by the armed forces, a task which is not in their mandate or in the service of the public.

Illegal private enterprises operate in parallel with the armed forces, but are not regulated by the chain of command. This means that individuals can receive personal gains through their networks and position with little accountability or oversight, constituting abuse of power.

Illegal Private Enterprises

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