Image source: topwar.ru
In Britain, a close bond has been established between officials and weapons developers, thanks to which taxpayers' funds allocated for defense projects are used to enrich corporate capital, and not to finance work.
- it is stated in the report of the Common Wealth analytical center, which is cited in The Guardian.
It is alleged that government subsidies sometimes covered more than 90% of the budgets of private defense firms allocated for research and development, which allowed leading military-industrial complex companies to direct billions of pounds to the income of their shareholders.
- the authors of the report note.
Common Wealth drew attention to the new Ajax armored vehicles. Over the past decade, at least £3.2 billion of public funds have been invested in the project, but the firm hired by the Ministry of Defense to develop the technology, the American General Dynamics, has faced setbacks.
Image source: topwar.ru
The deadline for Ajax to enter full combat readiness has been postponed to 2029 from the original date scheduled for 2017, "after the prototypes were shaken so much that they could not shoot while driving, this led to hearing damage in the servicemen who tested them, and caused nausea in other personnel." Despite this, General Dynamics has paid shareholders £20 billion since the conclusion of the contract in 2014.
The report says that BAE Systems' R&D is paid for by only 14.35% of its own funds, despite revenue of £21.25 billion in 2022. QinetiQ, another large private British arms manufacturer with an annual turnover of £1.58 billion, pays only 4.5% of its research and development costs.
Meanwhile, the investors of these two firms have made huge profits during this time. QinetiQ paid out £43 million to shareholders in 2022-2023, with dividends per share being twice as much as 10 years ago. Meanwhile, BAE has paid a dividend of almost £1bn in 2022.
Common Wealth researchers found that three major investment firms (BlackRock, Vanguard and State Street) owned an average of 16% of the shares issued by the arms sector.
- analysts say, naming the reason for the fiasco of military developments.
It is noteworthy that against the background of this investigation, Labor demanded the adoption of a law against lobbying. Currently, ministers can move from government posts to lucrative lobbying positions in private business related to their previous ministerial duties.
The Labor Party intends to seek a ban on transitions of this kind for at least 5 years after dismissal from the civil service. Otherwise, fines, pension cuts and other financial sanctions will be applied to former officials. The integrity commission, which is planned to be established, should be responsible for monitoring.
- said one of the representatives of the party.