Last year, the Ministry of Defense promised the Riigikogu that no obligations to the state had been taken under EU arms contracts. A new State Audit report shows this is not true. Urmas Reinsalu says the Riigikogu was simply lied to.
Reinsalu, who chairs the state budget control committee, spoke last fall with Defense Minister Hanno Pevkur and State Auditor Janar Holm. During the discussion, concerns were expressed about the Ministry of Defense's mismanagement. Last fall, the State Audit found several problems in the ministry's contracts. These issues require urgent resolution, especially as the defense budget grows.
The new audit shows that serious problems persist in the Ministry of Defense. For example, there is no proper internal control. This affects the accounting of assets, expenses, and liabilities. Reinsalu says these problems were promised to be resolved last year, but now they have worsened.
Last fall, the Ministry of Defense confirmed that no state obligations had been taken under EU arms contracts. However, the State Audit report shows this is false. The state must spend 70 million euros on them. This means the ministry has taken on obligations not accounted for in the state budget. Reinsalu believes the defense minister should resign.
Reinsalu says management measures are needed to resolve the issues. The Ministry of Defense must have clear leadership. The problems have deepened because the state is accepting procurement contracts worth billions of euros. Reinsalu emphasizes that major efforts are needed to address these problems.
Anastassia Kovalenko-Kõlvart, who chairs the anti-corruption special committee, said the State Audit report reveals mismanagement and corruption risks in the defense sector. She has scheduled an emergency committee meeting for next Thursday. Kovalenko-Kõlvart added that the government raised taxes to increase defense spending, but it is not even known where this money has gone.