Team Infidel
Forum Spin Doctor
Financial Times
April 14, 2008 By Sylvia Pfeifer, Defence Industries Correspondent
The defence industry should “clean itself up” and adopt industry-wide standards on ethical behaviour similar to those in the diamond industry, according to Lord Robertson, former secretary-general of Nato.
“In Nato I got frustrated with the way in which defence contracts appear to contaminate the political process in so many countries,” Lord Robertson told the Financial Times.
He said the industry needed to apply common standards similar to the Kimberly Process established in 2002 to stamp out the trade in “blood diamonds” from conflict zones.
His remarks will resonate among critics who have accused the industry of lacking transparency.
In Britain, the government is facing a firestorm of criticism after the High Court on Thursday ruled that it had broken the law by scrapping an investigation into arms deals between BAE Systems and Saudi Arabia. Judges found that the Serious Fraud Office had illegally allowed threats by Saudi officials to derail the bribery probe, which was controversially lifted in December 2006. The SFO is now under pressure to reopen the investigation.
Lord Robertson, British defence secretary from 1997 to 1999, declined to comment on the case, but he admitted defence in general did not have a good reputation. It was a “cut-throat business” where “the contracts are very, very big”, providing scope for corrupt behaviour.
Nevertheless, he said there was an appetite for change, noting: “The industry generally wants to be seen as playing by the book, both in their own interests and their reputation.”
Lord Robertson was speaking in his capacity as chairman of an industry-wide working group, which has teamed up with trade associations to raise anti-bribery standards and promote a common standard of anti-corruption compliance. But to work, the industry needed governments to sign up as well, he said.
Transparency International is hosting a conference in London tomorrow to discuss development of the code.
Lord Robertson said the conference would focus on preparing a guidance document setting out a code of principles – including a commitment to ensuring that no money or other gifts were illicitly channelled to a potential government customer – to which companies would be asked to sign up.
Such a code already has the backing of some west European and US defence companies, but the key will be ensuring compliance can be monitored and audited.
April 14, 2008 By Sylvia Pfeifer, Defence Industries Correspondent
The defence industry should “clean itself up” and adopt industry-wide standards on ethical behaviour similar to those in the diamond industry, according to Lord Robertson, former secretary-general of Nato.
“In Nato I got frustrated with the way in which defence contracts appear to contaminate the political process in so many countries,” Lord Robertson told the Financial Times.
He said the industry needed to apply common standards similar to the Kimberly Process established in 2002 to stamp out the trade in “blood diamonds” from conflict zones.
His remarks will resonate among critics who have accused the industry of lacking transparency.
In Britain, the government is facing a firestorm of criticism after the High Court on Thursday ruled that it had broken the law by scrapping an investigation into arms deals between BAE Systems and Saudi Arabia. Judges found that the Serious Fraud Office had illegally allowed threats by Saudi officials to derail the bribery probe, which was controversially lifted in December 2006. The SFO is now under pressure to reopen the investigation.
Lord Robertson, British defence secretary from 1997 to 1999, declined to comment on the case, but he admitted defence in general did not have a good reputation. It was a “cut-throat business” where “the contracts are very, very big”, providing scope for corrupt behaviour.
Nevertheless, he said there was an appetite for change, noting: “The industry generally wants to be seen as playing by the book, both in their own interests and their reputation.”
Lord Robertson was speaking in his capacity as chairman of an industry-wide working group, which has teamed up with trade associations to raise anti-bribery standards and promote a common standard of anti-corruption compliance. But to work, the industry needed governments to sign up as well, he said.
Transparency International is hosting a conference in London tomorrow to discuss development of the code.
Lord Robertson said the conference would focus on preparing a guidance document setting out a code of principles – including a commitment to ensuring that no money or other gifts were illicitly channelled to a potential government customer – to which companies would be asked to sign up.
Such a code already has the backing of some west European and US defence companies, but the key will be ensuring compliance can be monitored and audited.