Anti-bribery and -corruption regulations – the real-world test

Bribery and corruption have been part of many arms deals around the world. From time to time, scandals related to such deals have rocked governments in various countries. Some people involved were prosecuted, with some ending up in jail.

After Israel became one of the major arms exporters (one of the big 10), a need emerged to force industry to operate according to a single set of anti-corruption regulations.

A few days ago, the Israeli aerospace and defence industries were ordered to prepare compliance programmes that would avoid any sort of bribery and corruption as part of export contracts. This was an attempt to comply with the regulations of the Organisation for Economic Co-operation and Development (OECD), which Israel joined last year.

A letter signed by Udi Shani, director general of the Israeli Ministry of Defence, stated that all relevant companies have been instructed to prepare internal regulations according to the ministry’s guidelines.

Flightglobal has learned that each of the aerospace and defence companies will be required to nominate a “corporate compliance officer” to supervise the procedures relevant to the export of the company’s products. He or she will also supervise the work of the company’s representatives in foreign countries.

In previous years, Israeli defence companies have been mentioned in investigations of alleged corruption relating to the export of defence hardware. The new regulations are aimed at avoiding any such future occurrences.

Now we have to wait and see how the new regulations are being enforced in the real world of arms sales.



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