The National Audit Office audited the activities of the Ministry of Defence. They found that there are many problems there. These problems increase the risk of misuse of state funds and assets.
Janar Holm, the Auditor General, said these are not just technical problems. They could lead to waste or misuse of state funds and assets.
According to the audit, defence purpose assets are incorrectly accounted for. The Ministry of Defence has issues with inventory accounting. For example, it's unclear which assets and in what amounts are on the balance sheet.
The Ministry of Defence has violated accounting rules. They have left some assets unaccounted for. The Defence Forces themselves explained that previous data does not reflect the actual situation.
The Defence Forces retrospectively changed the value of assets by nearly €100 million. They couldn't explain why this change was made. There is also no document explaining why and how the amount was determined.
The audit also found serious problems at the Centre for Defence Investments (RKIK). These are related to cost accounting, contract management and tracking of goods delivery.
The National Audit Office recommended that the Minister of Defence and Minister of Finance take measures to improve financial management. It is also necessary to resolve issues related to asset accounting and inventories.
Chancellor of the Ministry of Defence Kaimo Kuusk said the remarks of the National Audit Office are correct. He acknowledged that what has been done is not yet sufficient. Kuusk added that they have taken steps to correct deficiencies, but it will take more time.