Murder, corruption, bombings – the company at centre of Australia’s submarine deal
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Murder, corruption, bombings – the company at centre of Australia’s submarine deal Michael West Media by Michelle Fahy | Oct 24, 2020 The arms company at the centre of a deadly criminal saga and numerous global corruption scandals, Naval Group, was selected by the Australian government to build our new fleet of submarines – a deal heralded as ‘one of the world’s most lucrative defence contracts‘. How did this happen? In this special investigation Michelle Fahy discovers significant gaps in anti-bribery and corruption measures on this massive procurement project. The message communicated far and wide is that our standards are lax; grey areas are tolerated; and we’ll bend the rules and look the other way.…………In June this year, 18 years later, a Paris court secured the first convictions in the case. Six men were found guilty of charges involving kickbacks on deals signed in 1994 for the sale of submarines to Pakistan and frigates to Saudi Arabia. They include three former French government officials and the former head of the International Division of Naval Group.
Investigations into arms trade corruption take years, often more than a decade, due to multiple countries being involved, layers of offshore shell companies hiding the money trail, and the senior people implicated. Court cases and convictions are rare. The Karachi Affair resonates in Australia today because despite this high-profile and deadly criminal saga – and two other corruption scandals, in Taiwan and Malaysia, which also involved murder – the company at the centre of all three, Naval Group, was still selected by the Australian government in 2016 to build our new fleet of submarines. A deal heralded as “one of the world’s most lucrative defence contracts”. Naval Group is 62.25% owned by the French government and 35% by French multinational Thales (a global top 10 weapons-maker). The French case continues. In January, the former French prime minister Edouard Balladur and his defence minister will stand trial. It is alleged the kickbacks helped fund the PM’s failed 1995 presidential bid. Both men deny any wrongdoing. Meanwhile, in Australia, the submarine deal continues. In February last year, after two years of negotiations, the government signed a ‘strategic partnership agreement’ with Naval Group. The signing took place despite the emergence of two more investigations into Naval, including alleged corruption on a 2009 submarine deal with Brazil and a significant security breach where complete plans of the new Scorpène submarines Naval had provided to India were apparently leaked from within Naval. ………………….Strong anti-corruption measures essentialVast amounts of Australian taxpayers’ money are being handed to military industrial companies, including Naval Group, in contracts. Yet the perennial lack of transparency in defence procurement, blanket secrecy surrounding Australian weapons exports, and a pervasive “culture of cosiness” between government and industry all continue. “Big money attracts greedy people and firms,” wrote a 31-year veteran of financial crime investigation for the Australian Federal Police, Christopher Douglas, in 2018. “New defence programs… also attract foreign intelligence interest.” This is already occurring in Australia, and Douglas says there will be more than one country spying. He says there is a “symbiotic relationship” between successful intelligence gathering operations and corruption. The corruption risk has only compounded since 2018. In June, the federal government further increased its projected military spend, from $195 billion to $270 billion. Tufts University in America researches arms trade corruption. It says there is an assumption by governments, barely questioned in defence and security circles, “that maintaining an advanced domestic arms industry is an unquestioned good, and essential to national security and influence. In all too many cases, this goal has therefore been placed above anti-corruption objectives.” (Emphasis added.) In Australia, developing a domestic arms industry is being accorded a high priority, but this should be accompanied by an increase in anti-corruption protections. The facts show nothing could be further from the truth. ‘Perfect bribe vehicles’Many of the world’s corrupt arms deals involve submarines. “They are perfect bribe vehicles,” says Tufts University, because “submarines are hugely expensive, and not many countries actually need them.” Australia is in a minority of countries that can argue it needs submarines. But do we need to spend quite so much money? Of the options available, the government selected the most risky one: the largest, most expensive, never-before-built, and thus completely untested, option. Chris Douglas, now director of Malkara Consulting, has written a report questioning Australia’s anti-corruption due diligence on the Future Submarine program. He has since used Freedom of Information requests to try to find out more about Defence’s anti-corruption framework in the program and has uncovered what appear to be significant gaps, discussed below. The international standard for anti-bribery measures is ISO 37001. It was introduced in 2016. Anyone serious about managing bribery and corruption requires a system that meets this international standard. ‘Come-from-behind victory’It was called “a remarkable come-from-behind victory” for DCNS, as Naval Group was then known, as it beat the respected German bid and former prime minister Tony Abbott’s favoured Japanese bid, to win Australia’s huge submarine contract in April 2016. How did DCNS do it? A history of the procurement is here, but we’ll probably never know the telling background details……………
Quite the opposite. Costello told the ABC’s Lateline, “The probity of me working for DCNS was checked and agreed with the government and all stakeholders in the program.” Costello didn’t elaborate on – or the ABC didn’t air – who in “government” signed off on it, nor who “all” the stakeholders were…………… Well-connected intermediaryIt was revealed in February 2019 that Naval Group had “recently” hired David Gazard to help “improve a rocky relationship with the Defence Department and to secure a crucial Strategic Partnering Agreement (SPA)”. A Liberal Party insider, David Gazard is well connected with the highest levels of the party. He was an adviser to John Howard, Peter Costello and Tony Abbott, in the lobbying business with Peter Costello for a time, and is also reportedly a member of prime minister Scott Morrison’s inner circle. In the 2010 federal election, Gazard stood for the Liberals in Eden-Monaro. After two years of negotiations marked by tension and sometimes bad-tempered wrangling, in December 2018 the government announced that negotiations had concluded. In February 2019, the ‘contract of the century’ was signed. Gazard and Naval Group declined to provide details on his role or the amount his lobbying firm, ECG Advisory Solutions, was paid. Sole FoI document suppressedEarly this year, Chris Douglas lodged an FoI request with Defence about anti-corruption measures on the submarine program. He asked for: …….[documents about anti-corruption measures]……. Douglas submitted another more general request to find out what, if any, ABC planning Defence had done. One document was identified, which Defence said was prepared by EY as part of its comprehensive advisory role (discussed above) and which included opinions and recommendations regarding the business affairs of Naval Group. As the document mentioned ‘third parties’, Defence said it needed to consult with them before it could be released. Douglas outlined his concern that entities involved in corruption often hid their activities and identities by claiming information was commercially sensitive. Nevertheless, Defence consulted the third parties. On 8 May, Defence told Douglas it was declining his request to release the document. Among other things, it said it had consulted EY, which had advised that the document was a very specific aspect of its comprehensive advisory role which, if read out of context, would not be in the public interest and could reasonably be expected to harm the professional reputation of EY. Defence also said it was “aware of allegations in connection with then-DCNS. In relation to these allegations, there have been no formal adverse findings against Naval Group.” (Emphasis added.) A month after this correspondence, the Paris court recorded the conviction against a former senior executive of then-DCN, now Naval Group, on charges relating to the kickback scandal. As noted earlier, given the paucity of cases to ever reach court in this industry, it is alarming that the Defence Department seems to require a “formal adverse finding” before it will give weight to corruption concerns. When it comes to managing corruption risk, is the Defence Department saying it is content to set the lowest possible bar for its contractors to clear? Government collusionThere is no better example of the collusion between governments and industry to ensure arms trade corruption cases rarely make it to court than the UK’s protection of BAE Systems, as described by Tufts University:…… If the multinational, majority French-government-owned Naval Group’s business and professional affairs are such that they would or could be adversely affected by the release of a risk assessment document evaluating its suitability to undertake the largest defence procurement program in Australian history, we might wonder, why was it selected? https://www.michaelwest.com.au/murder-corruption-bombings-the-company-at-centre-of-australias-submarine-deal/ |
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1.This month
For international nuclear news go to https://nuclear-news.net
of the week
Nuclear power cannot solve the climate crisis
PETITION https://www.alp.org.au/petitions/australians-dont-want-nuclear-power/
26 Feb – 24 April The Image is not Nothing (Concrete Archives) is a group exhibition that explores the ways in which acts of nuclear trauma, Indigenous genocide and cultural erasure have been memorialised by artists and others. It comes as the result of research by curators Lisa Radford and Yhonnie Scarce whose fieldwork has encompassed sites of significance including Auschwitz, Chernobyl, Fukushima, Hiroshima, Maralinga, New York, Wounded Knee and former Yugoslavia.
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Submissions to the Senate Committee Inquiry into National Radioactive Management Amendment Bill. 2020. Go to our summaries of significant submissions, conveniently listed in alphabetical order at Kimba waste dump submissions or see all submissions listed at Read the Submissions
Bill Gates, while motivated to help fight climate change, has also long been trying to make a success of his nuclear technology company Terra Power. The climate emergency presents him with the perfect opportunity to promote this, and especially, to get tax–payer funding to do it, as he suggests in his new book.
Elon Musk and Bill Gates: beware of gurus toting solutions to climate change
Elon Musk has grand plans to save the world. Bill Gates has just published his book ”How To Avoid a Climate Disaster”. They both envisage tax-payer funding for their solutions. But beware of gurus toting the solution to the planet’s crisis.
If you don’t think that our home planet is in an ecocidal crisis, then you’ve been blissfully unaware of global heating, over-population, biodiversity loss, waste crises, plastic pollution, overconsumption of energy , water shortages, deforestation, nuclear danger, space junk danger, perpetual nuclear war risk…….
Visionaries like Bill Gates and Elon Musk have brought extraordinary, and beneficial advances to our human society. On the way, they have become billionaires. And good luck to them. But their wealth and fame has made them all too ready to be seen as world leaders, and to see themselves as having the solutions to world problems. This can be problematic, as in effect, some of their solutions exacerbate the problems.
The future envisioned by both Bill Gates and Elon Musk has one huge blind spot. They both foresee ever-expanding energy use, and they plan for that – problems can be fixed with technology.
On a finite planet, endless energy use just cannot work. But the concept of enough is just not in their plans. If the human species does not take up the concept of enough, we could just become an extinct species. Technology could be used to reduce energy use, but that idea fades away as Gates, Musk, and other technocratic leaders see progress as being to have ever more exciting and energy-guzzling gimmicks and activities.The digital revolution. It should be a benefit, enhancing our lives, and in many ways, it IS. But an energy price is paid in our unbridled use of digital technology. Every email, emoji, Facebook post, tweet, blogpost, Youtube, uses electricity. It’s not as if these actions just disappear ”into the cloud”. What a dishonest term that is! There is no such cloud. What there actually IS – is a host of vast areas of dirty great data” farms”. There’s another dishonest term. They’re not farms. They are soulless collections of great metal servers, using ever growing amounts of electricity, and of water, to keep them cool.
Then there’s the price at the end. It’s very hard to find out the details and the extent of toxic materials from digital technology, that are dumped in poor countries.
And, to be fair, companies like Apple, have made some efforts to reduce their ewaste. https://www.ewaste-expo.com/is-apple-delivering-on-its-environmental-claims/
However, planned obsolescence is rampant in the high tech world, resulting in the utter tragedy of ewaste pollution, – from discarded smartphones, laptops, computers, printers, TVs, fidbits, smart fridges, robots etc, the tragedy of the thousands of children working as waste-pickers in India and Africa, in slum conditions. E-waste includes many toxic materials such as lead, arsenic, cadmium, and mercury, that release dioxins. . ”With no health or environmental protections in the slum, the toxins contaminate the air, water, and the food consumed in the slum…….. The area is constantly covered in thick, toxic smoke from the burning of electrical cables that goes on all day and night,” – High-tech hell: new documentary brings Africa’s e-waste slum to life https://news.mongabay.com/2012/04/high-tech-hell-new-documentary-brings-africas-e-waste-slum-to-life/
Both Gates and Musk are enthusiasts for renewable energy, and in the climate crisis, they are to be applauded for their work in this direction. Yet, as with all kinds of digital technology, renewables should not be unlimited, and do have their downsides, both in the production (pollution from rare earths mining/processing), and in the final disposal, with toxic wastes, and components that are difficult to recycle. . The International Renewable Energy Agency (IRENA) estimates that solar panels produced 250,000 metric tonnes of waste in 2018 alone.
Bill Gates and Elon Musk do show their awareness of the planet’s grave environmental problems, but we don’t hear from them about energy conservation, or about moving away from the consumer society. Both talk quite enthusiastically about the great increase in energy use that we can expect. They complacently predict endless energy use, just as the nuclear lobby did in its glossy advertising film ”Pandora’s Promise”
Elon Musk now plans to put 24,000 satellites into space, and is well known for his dream of colonising Mars, and This idea has, of course, been taken up by many others, and there’s a sort of general public delight in space travel and interstellar rocketry. People seem oblivious to the fact that this will require huge amounts of energy, and that the space scientists already are turning away from clean solar power, to the far more dangerous source of nuclear fission. They’re also oblivious of the state of affairs in near space, where the trillions of bits of space debris pose dangers, floating about just like the plastic pollution in the oceans. Meanwhile the military planners in USA, Russia, China are already planning for nuclear weapons and war in space.
No surprise then that Elon Musk sees nuclear power as necessary – not just for his predicted need for much more electricity on Earth, but for this obsession with satellites and rockets.
Less well understood than his push for electric cars and Tesla technologies, is Elon Musk’s investment in the cryptocurrency, Bitcoin. Running Bitcoin demands enormous amounts of electricity, as Timothy Rooks explained recently https://www.dw.com/en/why-does-bitcoin-need-more-energy-than-whole-countries/a-56573390
Bill Gates, while motivated to help fight climate change, has also long been trying to make a success of his nuclear technology company Terra Power. The climate emergency presents him with the perfect opportunity to promote this, and especially, to get tax–payer funding to do it, as he suggests in his new book.
Wake up people! These two gurus have done some good stuff. But don’t let them manipulate us into dangerous territory – with nuclear technology, so connected with weaponry, and with its dangers, and the unsolved problem of radioactive trash. Sure, technology has got to be part of solving the planet’s crises. But we need much more imaginative leadership to steer our species away from infinite consumption and infinite energy use.
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