Auditor general: Defense scandals pose no security threat to Estonia
Auditor General Janar Holm told ERR that the scandals that have emerged in the defense sector in recent months do not pose a security threat to Estonia. He said openly discussing problems instead makes the country stronger.
"I know many countries where it is not possible to talk about such things. This only makes us stronger," Holm said in response to a question about whether scandals in the defense sector pose a security threat to Estonia.
At the same time, Holm said the situation in the defense sector is concerning because several of the problems are systemic. He added that the more money that flows into the sector, the greater the confusion becomes.
The National Audit Office found problems with both the acceptance of goods and the awarding of contracts in 64 contracts handled by the Estonian Center for Defense Investments (RKIK). "Wherever we looked, there was some kind of problem," Holm said. In his view, a conventional inventory is not sufficient for accounting for Estonian Defense Forces stocks and a more digital system is needed.
EDF needs accounting rules
Holm said the Estonian Defense Forces, like all other government agencies in Estonia, must begin complying with accounting rules. He said this is important, on the one hand, for the Defense Forces itself, so that it has a quick and up-to-date overview of its assets and where they are located. On the other hand, the public must be able to see whether the money allocated to the defense sector has reached its intended destination.
However, because of problems with the accounting records, a situation arose this year in which the National Audit Office went to audit the annual report and the Defense Forces and Ministry of Defense said they had €1.2 billion worth of stocks. The National Audit Office cannot confirm whether the stocks are actually worth €1.2 billion because of the problems with the accounting records. "It seems to us that the figure should be somewhat higher," Holm said.
When there is confusion, it creates fertile ground for someone with bad intentions to take something for themselves at the state's expense. Efforts are now underway to determine what assets should be there in the first place in order to establish what is missing. Holm said there is also confusion surrounding the artillery shell deal, with the information lacking a clear audit trail.
Difficult to place blame without information
When information is lacking, it is also difficult to determine who is responsible. Holm said the parties are shifting the blame back and forth. "From the National Audit Office's perspective, what matters here is something that is often regarded as bureaucracy — namely, documentation," he said.
The National Audit Office has also told the Estonian Center for Defense Investments that the information does not provide a clear audit trail.
"We are now arguing over this and classified information is also creating a great deal of confusion, but presumably there will be clarity at some point," Holm said. He said primary responsibility always lies with the agency that enters into a transaction. In this case, the main responsibility lies with the head of the Estonian Center for Defense Investments, who signed the contract.
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Editor: Marcus Turovski, Merilin Leetna
Source: "Otse uudistemajast"
