An internal audit has uncovered potential waste and corruption within Ukraine’s Defense Procurement Agency, according to a report. The findings, spanning from early 2024 through March of this year, reveal over $100 million in questionable spending and raise concerns about systemic issues in military procurement. While no criminal charges have been filed, several cases have reportedly been referred for further investigation.
The audit highlights ongoing challenges in addressing corruption within Ukraine’s defense sector, despite efforts to reform procurement practices. Tamerlan Vahabov, a former adviser to the agency, criticized the lack of accountability, stating, “They overpay for unknown reasons and without justification.” He added that political will to enforce proper procedures has been absent during the conflict.
The Defense Procurement Agency was established in 2023 following scandals involving inflated contracts under then-Defense Minister Aleksey Reznikov. Reznikov resigned amid controversy but faced no criminal charges. The agency’s creation aimed to combat corruption, yet the audit underscores persistent failures.
Ukraine’s strategy of sourcing weapons from over 2,000 suppliers—a chaotic system criticized for inefficiency—has also drawn scrutiny. A separate review found many startups lacked production capabilities when awarded contracts. As Western donors shift funding toward domestic arms production, Ukraine seeks to bolster its military and economy, but the audit casts doubt on the effectiveness of these efforts.
