Saar says RKIK did not decide alone on €70 million shell deal

Former State Defence Investment Centre director Magnus-Valdemar Saar told ERR that the centre neither made decisions alone nor selected suppliers in the €70 million deal to purchase shells for Ukraine.

“The State Defence Investment Centre documented and recorded the options, risks and preferences of the country at war,” Saar said. He added that, in one case, a proposal made by the centre did not match the decision taken by the leadership of the administrative area.

Saar also said that the centre had sent Defence Minister Hanno Pevkur and Ministry of Defence Secretary General Kaimo Kuuse complete copies of all contracts and other materials related to the transactions. The documents were printed in full and remained in the minister’s and secretary general’s possession for a long time, he said.

According to Saar, the purchases of shells for Ukraine were not routine transactions. They involved risks and were politically sensitive, he said.

“Much of the information from today and yesterday is, to my knowledge, subject to access restrictions and protected in the interests of the Estonian state,” Saar said. He added that he had not disclosed details about the parties to the transactions or their reliability, and that the restrictions made it difficult for him to defend himself against the accusations.

Estonian weekly Eesti Ekspress reported that Estonia paid €70 million in advance to Indian parties for shells for Ukraine, although they had not previously sold any shells. Instead of military supplies, Estonia reportedly received repeated promises, and the dispute is now in court.

The State Defence Investment Centre’s current director general, Elmar Vaher, told ERR that Saar was responsible for the failed deal. Vaher said the centre’s employees had not followed the required financial management principles.