Hidden Menace: How secret company owners are putting troops at risk and harming American taxpayers

This report was originally published by Global Witness.

Since the financial crisis and release of the Panama Papers, we have heard a lot about the revenue governments lose to tax avoidance and evasion, but what about the losses resulting from corruption and fraud when governments spend money on goods, services and infrastructure?

Around the world governments spend $9.5 trillion each year on public procurement.  It should be no surprise that fraudsters, and corrupt officials, take advantage of this. According to research by the UN, corruption may amount to as much as 25% of the value of government procurement contracts worldwide.

Hidden Menace reveals the seriousness of the problem of anonymously-owned companies in U.S. government spending and recommends what must be done to fix it. It focuses on the issue of anonymous shell companies in military contract spending, both because of the serious national security risks posed by their use for illicit purposes, and because of the significant proportion of the U.S. budget—approximately 8.5% of total U.S. federal government spending annually.

Continue Reading: the full report can be found here.

This report was originally published by Global Witness.