New Delhi. Amidst the ongoing war with Russia (Russia – Ukraine War), a major case of alleged corruption and negligence in the defense procurement system of Ukraine has come to light. According to confidential military audit reports, fraud and waste of resources caused Ukraine alone to face military action in 2024. 1.2 billion dollars There was a loss of.
According to reports, cases of faulty military material being supplied to the army by defense companies have also come to light. These include thousands of defective mortar shells, which were used by soldiers on the battlefield. In some cases the shells fell out of the launch tube instead of reaching their target or fell on the ground with little noise.
Criminal cases against seven of top 10 contractors
Confidential audit reports of the State Audit Service of Ukraine and the Ministry of Defense have raised serious questions about the defense procurement process. According to the report, seven of the country's top 10 military contractors won new government contracts at a time when criminal cases related to fraud were already pending against them.
Despite the arrest of CEOs and senior officials of some companies, instead of excluding them from the government procurement process, the companies concerned continued to be given new contracts. Due to this, questions are being raised on the system of transparency and monitoring in defense procurement.
Controversy in contract worth 2.8 billion dollars
The report also mentions a government-owned Ukrainian factory, which the military said was close to 2,33,000 defective mortars Made available. The factory's director, Leonid Shaiman, was arrested in a major corruption case involving the defense industry during the war.
Despite this, it is alleged that when Shaiman was 28 million dollars He got the initial mortar contract at the time he was already out on bail in corruption cases.
Expensive company got the contract after leaving low bid
The report also raises serious questions about the role of middlemen in defense procurement. Three companies had bid for the rocket artillery deal worth hundreds of millions of dollars.
Turkish parent manufacturer Arka Defense directly from the factory, close to $4,200 per rocket Had given the lowest bid. Despite this, the contract was awarded to a subsidiary of the Czechoslovak Group, which had offered a higher price.
Ukraine's defense spending is reportedly close to its decision to purchase rockets through a middleman rather than directly from a manufacturer. 13 million dollars There was an additional burden of Rs.
Questions raised on defense procurement amid war
Ukraine is currently facing a long war with Russia and its military needs are continuously increasing. In such a situation, a large part of the defense budget is being spent on the purchase of weapons and military equipment.
The issues revealed in the confidential audit reports have raised questions about how effective the monitoring of defense procurement is in emergencies like war. Poor supply of military material and procurement through expensive middlemen is not only causing loss to the government exchequer, but can also have a direct impact on the safety and military capability of troops deployed on the battlefield.