Improper national defence procurement procedures
Profligate spending on defence contracts
Misuse of defence authority
Illegal activities involving defence agencies
Incompetence by defence supply agencies
Bribery involving defence contracts
Unfair practices in award of defence industry contracts
Falsification of invoices for defence equipment and services
Defence industry scandal
Arms procurement fraud
The procurement procedures of the national defence institutions are structured so that waste of resources, over-spending, corruption and spiralling costs and bloated military budgets are the natural consequences. Weapons systems generally cost too much, take too long to develop and perform too poorly. For a large part of business between the military and private enterprise, negotiated cost-plus-fixed-fee contract are used rather than sealed-bid fixed-price contracts. Regardless of the type of contract, they are not binding; fixed price contracts are only tentative and provisional prices, potential losses resulting from errors, poor judgement, and performance failures on the part of contractors are averted by modifications and amendment of contracts. Close relationships between government and defence industries are maintained by hiring practices by which retired military officers readily join contractors' staffs and top industry executives move to political positions within defence departments. Classification of documents and equipment mean that only approved industries are allowed access to contracts. Defence industry lobbyists keep contact with both politically influential people and bureaucrats. Reforms in national defence procurement procedures are often called for but little is done. Elected and appointed officials face incentives to opt for quick fixes; political authorities invest little in follow-up to the changes that are made; elections are always around the corner. Adversely affected parties keep quiet and wait for the storm to pass over. Elected officials, concerned with re-election, are more interested in how a defence contract will benefit their constituency than military effectiveness.
The international munitions business is secretive and closed and involves a small and incestuous community. That makes it a suitable environment for fraud.