The new audit by the National Audit Office once again revealed major problems in the defense sector. The Ministry of Defense has many shortcomings in its work. For example, asset accounting and financial management are disorganized.
In July 2024, the National Audit Office wrote to the Ministry of Defense. The letter stated that the Center for Defense Investments (RKIK) and the Defense Forces must improve their work organization. Additionally, there are many unrecorded assets.
Last year's audit showed the same problems. Poor work organization at RKIK and the Defense Forces affects accounting. The problems are long-standing and unresolved. The defense sector uses a lot of money, which increases risks.
One major issue is advance payments. For example, one supplier had received a 9.6 million euro advance since 2018. This was like a long-term loan from taxpayers' money.
The Ministry of Defense has taken on obligations not covered by the state budget. This could cost up to 70 million euros. Chancellor Kaimo Kuusk says this resulted from a supplier's bankruptcy. Whether the state must pay is still unclear.
Former Defense Minister Urmas Reinsalu says the ministry promised to avoid such expenses. Kuusk responded that they are fixing the issues and describing the risks.
Defense Minister Hanno Pevkur did not speak with ERR. Kuusk stated that the chancellor is responsible for financial matters. He does not plan to resign.
The Ministry of Defense, RKIK, and the Defense Forces acknowledge the problems. At RKIK, documents are unsigned or lack authorization. This increases the risk of corruption.
RKIK head Elmar Vaher said he is not aware of corruption issues. He did not answer the question precisely. Unsigned documents are, in his words, "minor negligence."
Defense Forces logistics chief Valdo Veski was pleased that there were no errors in asset accounting. However, starting in 2025, the Defense Forces must record asset values. Currently, there is a 1.2 billion euro gap in accounting.
Veski said some deliveries lack prices. This is a problem with the National Audit Office. He does not see major changes or corruption risks.