Audit finds transparency breaches in Lithuania’s dragon’s teeth purchase

Lithuania’s Public Procurement Office found transparency violations in the army’s purchase of mobile tetrahedrons known as “dragon’s teeth,” LRT reported. The findings concern a tender run by the Lithuanian Armed Forces Logistics Board and were presented to members of the Seimas Audit Committee on Wednesday.

The contract was awarded to Taiklu, a private limited company, for nearly 823,000 euros excluding VAT. The procurement took place on June 26, 2024.

The office identified three types of violations: failures concerning compliance with technical specifications, the assessment of an unusually low price and transparency during contract performance.

Under the contract, Taiklu had to provide evidence that the tetrahedrons could withstand a force of 1,000 kilonewtons. The company supplied laboratory test results confirming they met the requirement, but only 110 days after the procurement process. The office said the army had no such evidence during the tender.

The office also found that the army’s requests for justification of unusually low prices were too formal and did not meet legal requirements. Two suppliers, including the winning bidder Taiklu and the manufacturer Gelmesta, offered unusually low prices. The office said the army should have examined more closely that Taiklu bought the tetrahedrons from Gelmesta at prices below those offered by the manufacturer.

The contract required delivery within 270 calendar days of its signing. Taiklu delivered some goods in several batches after the deadline, with the latest arriving 30 days late. As the contract has been completed, the office said it would limit its action to classifying the violations, while a decision on individual liability remains to be made.