Desi defence cos ranked among least transparent

MUMBAI: Indian companies involved in the defence sector are ranked among the least transparent in the world in a latest report by anti-corruption watchdog Transparency International (TI). The report, titled “Defence Companies Anti Corruption Index 2015,” measures the transparency and quality of ethics and anti-corruption programmes of 163 defence companies from 47 countries.
The report, based on all-desk research conducted between April and December 2015 on publicly available information, comes at a time when India, with a defence budget of $40 billion, is looking at modernizing its army, navy and air force with latest equipment, ships, fighter jets, arms and ammunition.
Indian Ordnance Factory, the world’s largest government-operated production organization and the oldest run by the Indian government, has been ranked ‘F’ by TI on the ‘A to F’ scale, where ‘A’ stands for highest and ‘F’ for lowest level on the transparency index.
Publicly listed government firms like Bharat Earth Movers Limited (BMEL) and Bharat Electronics Limited (BEL) have been ranked ‘E’ while Hindustan Aeronautics Limited (HAL) had to be content with a ‘D’.
Bangalore-based BMEL is Asia’s second largest manufacturer of earth moving equipment and it controls 70% of India’s market in the sector, while BEL is a Navratna which manufactures advanced electronic products for the Indian armed forces. Both BEL and BMEL have improved their ranking by one grade compared to 2012.
“Corruption in defence affects us all. It is not just about commissions on sales; corruption can also directly threaten the lives of citizens and soldiers,” said Mark Pyman, director of the Transparency International UK Defence and Security Programme, adding that “companies that have improved are taking the lead in bringing transparency to this often-secretive sector”.
The firms that made it to the ‘A’ grade on the list include all US-based companies like Bechtel, Fluor Corporation, Lockheed Martin and Raytheon.