Thursday, October 4, 2012

Breaking! HAL and BEL score low on anti-corruption systems

Neelam MathewsOct 4, 2012
 Two-thirds of the world’s biggest defense companies do not provide enough public evidence about how they fight corruption, according to a new study from Transparency International UK released today. This includes companies from all of the ten largest arms exporting nations like US, Russia, Germany, France, the UK and China—who between them are responsible for over 90 percent of the arms sales around the world, the Defense Companies Anti-Corruption Index (CI) shows.

The rating is done on good, publicly available evidence of having at least basic ethics and anti-corruption compliance systems in place. HAL, BEML and BEL, were listed under the lower bands.

Based on level of evidence for basic anti-corruption systems in place:Ten companies score in the top two bands. Fluor Corporation (only 3% defense) is the only company to score in Band A. In band B are Accenture, BAE Systems, Fujitsu, Hewlett-Packard, Meggitt, Northrop Grumman Corporation, Serco Group, Thales, and United Technologies Corporation.There are 34 companies in band C including Boeing, Lockheed Martin, Textron, EADS, ITT Exelis, Raytheon, and Honeywell. The 25 companies in Band D include our HAL, MTU and Safran, band E includes Dassault, while BEL and BEML are listed under under Band F. IAI, Navantia, Russian Helicopters, Tatra and Sukhoi are also part of the 47 companies under the lowest band, F.

The index provides an analysis of what the 129 biggest defense companies around the world do and fail to do to prevent corruption. The study, which grades companies from A to F, measures defence companies worth more than USD 10 trillion, with a combined defense revenue of over USD 500 billion. Transparency International estimates the global cost of corruption in the defense sector to be a minimum of $20 billion per year, based on data from the World Bank and SIPRI. 

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