Deficiencies in defense facilities: audit of the Accounting Chamber reveals serious problems
21 October 10:39
The Accounting Chamber has conducted an audit of the compliance of the use of budget funds for military engineering and fortifications, which resulted in the elimination of violations worth about UAH 5 billion. This was reported by "Komersant Ukrainian" with reference to the Accounting Chamber.
The Accounting Chamber has approved the Report on the results of the audit of compliance with the use of budget funds for military engineering and fortifications. Member of the Accounting Chamber Gennadiy Plis was responsible for the audit. The meeting was attended by the representatives of the Ministry of Defense of Ukraine, state customers and a member of the Ukrainian Parliament. The report contains information that constitutes a state secret.
Audit objective
The main objective of the audit was to assess the extent to which the planning processes and budget expenditures for fortification construction complied with the current legislation.
The control covered the period from January 2023 to September 2024 and included the following
- the status of construction of fortifications,
- the use of budget funds by the Ministry of Defense and state customers,
- the effectiveness of accounting, reporting and control over the readiness of the facilities.
Systemic deficiencies identified
The audit revealed a number of problems that complicated the effective construction of fortifications:
- Insufficient legal and regulatory framework for construction processes;
- Delays in approving the state program of fortification construction;
- Problems with accounting and reporting, including the actual readiness of structures;
- The use of the state budget reserve fund, which is intended for unforeseen expenses, is not on a regular basis;
- Failure to use the funds in full and overdue receivables;
- Risks of overestimating the cost of works and materials.
According to preliminary estimates, the amount of deficiencies reached about UAH 5 billion.
Measures to eliminate violations
During and after the audit, most of the issues were promptly resolved:
- The regulatory framework for fortification construction was improved;
- The purchased material assets were registered;
- Almost all overdue receivables were repaid;
- The unused reserve fund was returned to the state budget;
- The contractual value of materials and services was adjusted and overpayments were reimbursed;
- Lawsuits were filed to recover fines for unfulfilled obligations;
- Some of the materials stored by the contractors were transferred to the Armed Forces of Ukraine.
Next steps
The decision of the Accounting Chamber together with the Report will be sent to the key authorities:
- The President of Ukraine,
- The Verkhovna Rada of Ukraine and its Committee on National Security, Defense and Intelligence,
- The Cabinet of Ministers,
- The Ministry of Defense and government customers.
This will ensure compliance with the law and control over the use of budget funds, taking into account the provisions on state secrets.
