The Accounting Chamber will continue to monitor the implementation of its recommendations and inform the public on the progress of their implementation
In response to the recommendations of the Accounting Chamber Ukraine issued following the compliance audit of defence procurement in the area of logistical support to the Armed Forces of Ukraine in 2024, the responsible entities improved a number of regulatory and control mechanisms in this area.
As a reminder, the audit covered the activities of the Ministry of Defence of Ukraine and the State Enterprise “State Logistics Operator” (SE “SLO”) in 2024 and identified a number of systemic shortcomings in the conduct of logistical procurement. These included, in particular, insufficient funding, inadequate accountability of suppliers for failure to fulfil contractual obligations, and uneven digitalisation of logistical support processes. A survey of 29,000 service members showed that 60% of them had to purchase clothing and equipment at their own expense, while 26% reported shortages of fuel in their units.
To date, the audities have implemented 13 of the 23 recommendations.
In particular, the Ministry of Defence of Ukraine and the State Enterprise of the Ministry of Defence of Ukraine “Defence Procurement Agency” (SE “DPA”) reported that the distribution of powers among the participants in the logistical procurement process had been regulated and that mechanisms for performance assessment, internal control and risk management had been introduced. The audities also reported improvements in the procedures for planning, price determination, supplier verification and the development of technical specifications, as well as the introduction of digital tools for managing procurement and logistical support processes.
The measures taken have helped streamline the regulatory and organisational framework for logistical procurement and the supply of food, clothing and equipment, and fuels and lubricants for the needs of the Armed Forces of Ukraine.
At the same time, the Office of the Prosecutor General reported that, on the basis of the Audit Report, information had been entered into the Unified Register of Pre-Trial Investigations, and the relevant materials had been forwarded to the Main Investigation Department of the National Police of Ukraine for inclusion in the materials of the criminal proceedings.
The Accounting Chamber of Ukraine will continue to monitor the implementation of the recommendations and will keep the public informed about the progress of their implementation.
Additional information.