Military-Owned Businesses Pose Unique Corruption Risks

By Samuel Rubenfeld

Businesses owned by militaries around the world pose unique corruption risks to the sectors in which they operate, a new report found.

The report, released Thursday by Transparency International’s U.K. Defence and Security Programme, looks at how military-owned businesses are structured, what the inherent corruption risks are for these firms, and why and how the countries have made reforms to their military-owned companies.

“Once the military begins to engage in economic activities, it is often difficult to end such practices. In most situations, corruption becomes rampant and a major problem which (sic) harms the state and the national economy as well,” the report said.

Introducing a profit motive into the military increases the chance for distraction, the report said. Looking at case studies in China, Indonesia, Turkey and Pakistan, the report found that distraction often leads to outright graft, and in the more extreme cases that manifests itself in the form of embezzlement of state funds, tax fraud and even brutal coercive practices on workers. …..

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Pakistan’s military and legislators plan peace talks with Taliban

– In the midst of bad and worsening relations with Washington, Pakistan considers new round of peace talks with Pakistan-based Taliban, arguing that ‘military solutions’ are making things worse.

By Owais Tohid

Excerpt;

……. But analysts believe that striking negotiations with Islamic militants will pose serious challenges. “We struck peace accords with militant commanders during the past and those blew up on our face,” says Peshawar-based defense analyst, retired Brig. Mohammad Saad. “Once you enter into negotiations, they [the militants] grow bigger than their size and start believing themselves as equal. The more the state talks to them, they will become a bigger problem in Pakistan.”

“Their agenda is different,” Brigadier Saad adds. “Their ideology is in clash with the norms and values of any modern civilized society.” …..

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