Cabinet to review accounting lapses in defense sector
Prime Minister Kristen Michal (Reform Party) announced that he has convened a government cabinet meeting for early Thursday morning, where he will ask the Auditor General to provide an overview of unclear accounting practices in the defense sector.
"From Minister of Defense Hanno Pevkur, Commander of the Defense Forces Andrus Merilo, head of the Center for Defense Investment (RKIK) Elmar Vaher, and Ministry of Defense Secretary General Kaimo Kuusk, I expect a concrete action plan at Thursday's meeting to resolve the problems quickly," Michal wrote.
"People in Estonia need assurance that every euro invested in the defense sector goes toward defending Estonia," he said.
In an audit of the state's consolidated annual financial report published last week, the National Audit Office found numerous serious problems in the activities of institutions under the Ministry of Defense, which in its assessment increase the risk of misuse of state funds and assets.
According to the audit, defense‑related inventories are incorrectly recorded in the state's consolidated annual report.
The National Audit Office issued a remark regarding the accuracy of inventory balances in the Ministry of Defense's area of governance amounting to €1.2 billion, because due to significant shortcomings in the Defense Forces' inventory accounting, it is unclear which inventories, in what quantities, and at what value are reflected in the balance sheet — and which have been unjustifiably left out.
Last Friday, Minister of Defense Hanno Pevkur (Reform Party) said that the National Audit Office's recommendation to temporarily transfer the management of Defense Forces assets to the Ministry of Defense is correct, and the ministry will do so.
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Editor: Valner Väino, Argo Ideon
