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Technical requirements

The technical requirements and/or specifications of a defence contract constitute a particularly influential corruption entry point. Corruption risk in this regard stems from the complexity and high monetary value of defence contracts, as well their direct connection to national security and the thick wall of secrecy and confidentiality shielding them. There are, of course, a number of areas within that defence and security realm that must be protected by confidentiality. However, over time this requirement can become habitual and unnecessary — with purchases of boots, uniforms, and office supplies being routinely “classified” — thereby introducing corruption into the procurement process. In fact, according to research by TI-DSP, approximately 70-80 per cent of given defence contracts do not require their confidentiality restriction.

Defence tenders which yield the most value for money, as well as the most suitable and high quality kit, depend on open competition. However, the dynamics of secrecy described above, combined with close supplier-purchaser relationships stemming from security of supply considerations, allow the technical specifications of a contract to be deliberately swayed in favour of a particular supplier, in return for kickbacks. Similarly, technical specifications can be manipulated to reflect corrupt opportunities rather than the requirements of the armed forces. This said, most public procurement systems do abide by competition regulations in large-scale purchases, to ensure value for money. Nevertheless, bribery, kick-backs, collusion or coercion still distort the process of tender specifications, supplier selection and eventual award of the contract.  


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