SHARE
COPY LINK

DEFENCE

Austrian arms firm fails to meet grade in ethics

Austria's Hirtenberger Group, which produces industrial equipment and defence technology, is one of 37 companies that failed to make passing grades in an analysis of ethics and corruption released by Transparency International on Monday.

Austrian arms firm fails to meet grade in ethics
Photo: Shutterstock

Transparency International UK analyzed 163 defence companies across 47 countries for having proper ethics and anti-corruption programmes – programmes which the anti-corruption group explained can help prevent shady deals that may lead to the sale of defective equipment and harm to soldiers.

However, there is no suggestion that any individual company in the report has engaged in corrupt practices.

While 33 percent of the companies reviewed in the last report in 2012 showed improvement, two-thirds, or 107 companies, were still rated with below passing grades.

Thirty-seven companies, including Hirtenberger, showed no evidence at all of having anti-corruption or ethics programmes. When contacted by The Local, a spokeswoman at Hirtenberger said the company had “no comment” in response to the report. 

Corruption in the defence industry is an issue that we all should be concerned about,” report author Katie Fish told The Local. “It can be wasteful to taxpayers when money could be better spent on healthcare or education, and it can also impact the lives of soldiers when they are handling faulty equipment due to a corrupt deal, soldiers who are defending us.”

Just eight companies showed evidence of having mechanisms that encouraged whistleblower reporting and 13 companies conducted regular due diligence on agents.

In Europe and central Asia, 42 out of 62 received less than a C grade, 27 of which got the lowest grade of F.

Dublin-based Accenture, Airbus in the Netherlands and British Rolls-Royce were among the top-rated in Europe, each scoring a B based on public information and both Accenture and Airbus reaching the A level when internal information provided to Transparency International was considered.

No companies in Europe and central Asia received the top A grade based solely on publicly available information.

“When you look at, say, North America compared to Europe, it looks as if the European companies are more often in the D, E and F bands, but the US is a much larger group,” Fish told The Local.”

“It is surprising that UK companies are now in the upper half of the index, and that we do still see companies from Spain, France and German appearing in the lower half. There is still a need for improvement even in western Europe.”

The report also recommends steps that company CEOs, country leaders and investors can take to improve anti-corruption measures, such as having more disclosure of programmes on company websites and conducting independent reviews.

“Just as companies have a responsibility, governments equally have a responsibility,” Fish explained. “Politicians can really push to help the industry improve.”

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

DEFENCE

France recruits 1,800 extra staff to cyber warfare unit

The French defence ministry on Wednesday announced plans to significantly boost the country's four-year-old cyber warfare force, citing the "growing number and gravity" of hacking attacks on the country.

France recruits 1,800 extra staff to cyber warfare unit
French defence minister Florence Parly. Photo: Alain Jocard/AFP

The government had already planned to add an additional 1,100 recruits to a unit created in response to the growing number of cyber attacks on the West, mostly blamed on Russia and China.

Defence Minister Florence Parly told a cyber security conference in the city of Lille on Wednesday she had decided to go further to try make France “a cyber security champion”.

Warning of a “Cold War in cyberspace” she said she would hire an extra 770 cyber combattants on top of an additional 1,100 already planned, bringing the force’s staffing level to 5,000 by 2025.

France and other Western countries are alarmed over a growing number of increasingly aggressive cyber attacks, including data breaches and ransomware attacks, which typically see hackers encrypting victims’ data and then demanding money for restored access.

Recent high-profile targets have included a US oil pipeline, Ireland’s health service and India’s flag carrier Air India.

Parly said that the French army needed to increase it use of the “cyber weapon”.

“Our opponents do not shy away from doing so, whether state powers, terrorist groups or their backers,” she said.

SHOW COMMENTS