Audit finds 42% of defence procurements take months to approve

Approval procedures for 42% of analysed defence procurements took between 30 and 374 days, Lithuania’s State Control said in a report published Thursday, according to LRT.

Auditors said the delays were caused by unclear rules governing the functions of bodies involved in procurement, decision-making powers effectively given to advisory groups, and divided responsibilities. These factors significantly extended strategically important procurement procedures and delayed acquisitions.

Advisory bodies reporting to the minister of national defence participated in decisions on 14 of the 31 analysed arms procurements. They included the Defence Resources Council, the Armaments and Military Equipment Group, and the Defence Resources Group.

The State Control found that the Defence Resources Agency, which carries out procurements, relied on protocol decisions by these bodies even when no legal act had been adopted by the minister or an authorised official.

Auditors said the advisory bodies were legally authorised only to submit proposals and conclusions, not to make decisions. They also warned that their members, despite directly influencing procurement outcomes, were not required to declare private interests as participants in the procurement process, creating risks of bias and a lack of transparency.

The audit also identified transparency gaps within purchasing organisations. From 2023 to 2025, procurements conducted by the Defence Resources Agency under exceptions accounted for 40% of the total value of all its contracts, amounting to 3.4 billion euros.

Although all agency employees must declare their private interests, the audit found that in 53% of cases, people involved in procedures did not record their actual participation in a specific procurement in any form. In 74% of those cases, they directly prepared procurement initiation applications. Auditors also found cases in which confidentiality undertakings were signed late, after procedures had already begun.

The State Control recommended that the Ministry of National Defence clearly separate the powers and responsibilities of advisory bodies from those authorised to make decisions. It also called for the decision approval process and its deadlines to be established, with final decisions made only by authorised bodies.

The aim is to reduce approval procedures to no more than 35 working days. The Defence Resources Agency was advised to strengthen procurement oversight and ensure that procedures comply with public procurement principles and requirements.

Earlier this month, the State Control reported that the defence procurement system was failing to meet the army’s needs. The audit found that the share of failed procurements in the defence sector had increased over two years, reaching 59% in 2025.