The linkages between defence spending, corruption and illicit financial flows were examined in this report. The research content is guided by the TANA Forum Terms of Reference, dated 16 December 2013. The research proposal was submitted by Justice Africa to the TANA Forum in November 2013. This first section of this report, which is structured in three parts, discusses the global experience of defence spending and its connection to corruption, often facilitated by illicit financial flows. It was emphasised in this section that corruption in defence procurement is a global phenomenon. The reasons for this are unpacked, with a focus on the manner in which defence procurement is unique in all government expenditure due to its connection to national security concerns. The second section addresses the experience of defence procurement and corruption on the African continent. Included in this section are an analysis of formal defence procurement mechanisms on the continent and their susceptibility to corruption; a discussion of the scale, content and form of formal government defence purchases on the continent in the previous 20 years; and indicative case studies that illustrate the connections between government defence procurement, corruption and illicit financial flows. The third section concludes with recommendations based on the foregoing.
