Reinsalu accuses Defence Ministry of lying to parliament

Estonian lawmaker Urmas Reinsalu has accused the Defence Ministry of misleading the Riigikogu, Estonia’s parliament, after a State Audit Office report found that the state faces 70 million euros in obligations under European Union defence equipment agreements, ERR reported.

Reinsalu, chair of the Riigikogu’s special committee on state budget control, said the Defence Ministry had told lawmakers last autumn that the agreements involved no obligations for the state. The new audit found otherwise.

“The State Audit Office states that it cannot assess the accuracy of inventories worth 1.2 billion euros,” Reinsalu said. He added that the ministry had taken on obligations that were not included in the state budget.

The audit also found continued significant deficiencies in the internal controls of institutions under the Defence Ministry. These affect the accounting of assets, costs and receivables, as well as the implementation of the budget.

The State Audit Office had identified similar problems in an audit of the state’s consolidated annual report last autumn, including difficulties obtaining necessary information from institutions under the ministry. Reinsalu said he had discussed the issues with Defence Minister Hanno Pevkur and Auditor General Janar Holm at the time.

“In this logic, my firm conclusion is that the defence minister should resign,” Reinsalu said.

He said the problems needed to be addressed through management reforms and greater clarity across the ministry and its area of government. Reinsalu also suggested that the minister’s active reshuffling of the ministry’s senior leadership may have contributed to the problems.

Reinsalu warned that the issues had deepened as Estonia prepared to enter procurement agreements involving billions of euros in further obligations, which he said were necessary for security reasons.