Indian firm: Estonia defense contract dispute left us out of pocket
A company at the heart of a defense procurement scandal says it delivered the bulk of the munitions and could have met all its obligations had Estonia not ended the contract, Eesti Ekspress reported.
The company, Datasel, an Indian firm, is suing Estonia, says it delivered the bulk of the munitions — €59 million worth – to the state Center for Defense Investments (RKIK).
The controversy prompted the resignation of Hanno Pevkur (Reform) as Minister of Defense late on Wednesday, and the payment matter is with international arbitration.
"Datasel is the party that has suffered losses in connection with these supply contracts," the company told Eesti Ekspress via its lawyer. "The actions of the Estonian Center for Defense Investments, particularly the reasons given for the extraordinary termination of the contracts, are contradictory and illogical."
Datasel confirmed it had received €59 million in advance payments from the RKIK; the RKIK put the pricetag of the procurement at €70 million, which Eesti Ekspress says means the remaining funds must be "somewhere else," though the paper does not yet know where.
"Datasel has supplied a significant quantity of goods and submitted invoices totalling €58 million," the company said, acknowledging delays but disputing claims of insufficient quality. "Eventually, Datasel was given to understand that the RKIK was unable to accept the remaining goods," the company said, adding that it remains committed to fulfilling the contract if the RKIK fulfils its own obligations.
Eesti Ekspress on Wednesday published its article revealing how the Estonian state had sought to buy artillery shells from Datasel, an effort intended to provide aid to Ukraine, but the deal fell through. The RKIK terminated its contracts with Datasel last fall and requested the company return advance payments.
Datasel disputed this, prompting the RKIK to recourse to the courts, first to a domestic Estonian court and then to the Strasbourg-based European Court of Arbitration. There is reportedly no record of the production of shells for Ukraine.
Pevkur resigned Wednesday, saying while he had no personal involvement in the case, he was taking "political responsibility" for it. The scandal has prompted cross-party calls for accountability and a criminal investigation. It has also highlighted shortcomings in the Estonian Defense Forces' (EDF) inventory management system.
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Editor: Andrew Whyte, Mirjam Mäekivi
Source: Eesti Ekspress
