Defence Ministry to temporarily take over military asset management

Estonia’s Defence Ministry will temporarily take over the management of the Defence Forces’ assets following a recommendation from the National Audit Office, Defence Minister Hanno Pevkur told ERR’s Aktuaalne Kaamera.

Pevkur said the ministry would put the systems in order before returning responsibility to the Defence Forces. He said the arrangement was expected to last between six months and a year.

The National Audit Office has identified serious problems in the activities of institutions operating under the Defence Ministry, including the incorrect reporting of defence stocks. The audit said the issues increased the risk of misuse of state funds and assets.

Pevkur said the audit had also found progress since the previous year. Of 36 observations made about the State Defence Investment Centre last year, 32 had been addressed and four remained outstanding. He said some of the remaining issues might not be possible to correct because they involved existing contracts.

The ministry has hired a separate team to conduct an inventory, changed its internal accounting rules and ordered a complete inventory. Pevkur said these measures should demonstrate that the accounts were in order, adding that the physical assets were accounted for.

“We know exactly how many howitzers and shells we have, and we know the stock levels,” Pevkur said. He added that the main issue concerned changes in the value of assets over time and the complexity of accounting for the Defence Forces’ assets and stocks.

He said the Defence Forces would still be responsible for ensuring that the required ammunition was present and correctly counted.

Asked about responsibility for the problems, Pevkur said the ministry would examine the matter through internal audits and controls. He said the review would also determine whether specific individuals had failed to complete their duties.

Pevkur said he would remain defence minister as long as he retained the confidence of the prime minister and Parliament.