The committee met Monday to discuss the audit office's criticisms, which included observations of overpayments in the tens of millions and a lack of transparency in the availability of data on the use of funds.

Committee chair Kalev Stoicescu (Eesti 200) said while urgency is needed, things might not be fully resolved by year-end. "In some cases, these are systemic problems which have lasted for years and, thanks to decisions that were taken not last year or this year, but considerably earlier, by the leaders of that time," Stoicescu told "Aktuaalne kaamera."

We must speak with those who are in office now and who should set things right. It is in their power and within their competence," Stoicescu went on, noting that these defense representatives should be invited to appear before the committee.

Committee deputy chair Leo Kunnas, (Independent) even stated two agencies under the defense ministry's remit, the State Defense Investment Centre (RKIK) and the Defense Resources Agency (KRA) should never have been created as civilian entities distinct from the Estonian Defense Forces, a fact highlighted by the changed security situation, he said.

"These are purely peacetime structures and cannot function normally during war. Ultimately we ask – what functions could even now be taken away from the EDF commander and the EDF?" Kunnas said.

Raimond Kaljulaid (SDE), who sits on the committee, said the situation in the field of defense investments is even worse than has already been reported in the media.

Audit office representatives who attended Monday's defense committee meeting stressed the problems with defense funding are systemic, long-term, and substantive, he said.

"Representatives of the National Audit Office repeatedly emphasized that the problems are systemic, have persisted for a long time, and are certainly not only accounting-related, but substantive," Kaljulaid wrote on his social media account.

Minister of Defense Hanno Pevkur (Reform) also presented his explanations at the meeting, some of which the National Audit Office rejected, Kaljulaid went on. "For example, the minister tried to explain that sometimes it is necessary to make advance payments larger than agreed in order to secure deliveries. The National Audit Office intervened and pointed out that the advance payments discovered during the audit had been made in error."

The audit office also stressed that they had not checked all transactions and all asset records yet, Kaljulaid wrote, noting that the auditors had verified the location of 11 assets against the records, and in three of these cases the asset was located elsewhere than it should have been.

Errors with advance payments were also found in a spot check, which in Kaljulaid's view suggests that there may be more such erroneous advance payments yet to be identified. "The ministry is only now clarifying what the situation with them is. I got the impression that something is very wrong in how the ministry annually keeps records of advance payments with suppliers, which is also confirmed by the National Audit Office," Kaljulaid went on.

The question also arose as to why the Minister of Defense did not immediately inform the National Defense Committee of the issues, he went on, also criticizing there being insufficient time for discussions at Monday's meeting.

"It is regrettable that the coalition voted down the proposal to allow sufficient time for this discussion," he wrote, adding that by the time stakeholders had given their introductory presentations and the committee members had asked their questions, the parties involved had about 15 minutes left to provide answers.

"Naturally, it was only possible to give very general answers during that time; there was no time left for follow-up questions or for discussion."

EDF commander Lt Gen. Andrus Merilo said the defense forces have an overview of the existing supplies, their locations, and the supplies incoming.

The EDF is accelerating the flow of information between databases to eliminate the deficiencies in reporting as pointed out by the National Audit Office, Merilo added.

"I do not rule out that we may have to hire additional auditors or think through how we conduct the inventory," Merilo said.

"Stockpiles move, some things get used up. We purchase more and accounting is constantly running in parallel. And that accounting may indeed not reach the correct database in real time. It takes a little time. Temporary discrepancies also arise from that," Merilo told "Aktuaalne kaamera."

The National Defense Committee did not at Monday's meeting get any specific deadline from defense sector representatives as to when the shortcomings will be rectified.

An extraordinary inventory is to be completed by October.

In a report released Wednesday, the National Audit Office (Riigikontroll) highlighted several issues in contracts signed by agencies under the Ministry of Defense. This came as part of the audit of the state's consolidated annual accounts, though the defense budget is particularly in focus as the changed security situation has meant it has been growing at a rapid rate.

One major error identified was an overpayment of US$79.1 million (€68 million) to a supplier, followed by another US$8.7 million (€7.5 million), of which only US$47.8 million (€41 million) was recovered.

The audit office report also identified serious difficulties in accessing key data from the ministry and its agencies, urging swift action.

Any potential misuse of public funds, which according to the report goes back further than the current minister's term in office, also needs to be seen in the light of soaring food prices and other inflation and tax hikes which primarily affect the average person.

Minister Pevkur said advance payments were made to the US government for the purchase of HIMARS systems, Minister of Defense Hanno Pevkur, which started arriving in Estonia in spring.

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