The Ministry of Defense of Ukraine is introducing a new procurement architecture in accordance with NATO standards. This is reported by the press service of the Ministry of Defense, UNN reports.
Details
The agency emphasizes that the new procurement system and active cooperation with law enforcement agencies will help eliminate the risks of corruption in procurement for the Armed Forces.
The Ministry of Defense has introduced ceiling prices for products above which suppliers cannot supply food to the military
For example, while previously, according to NABU, suppliers set the purchase price for potatoes at UAH 16/kg, in one of the tenders in December 2023, the Ministry of Defense set the maximum price at UAH 10.35. The situation is similar for cabbage (UAH 28 and UAH 14.54, respectively) and onions (UAH 39 and UAH 22.86, respectively).
A fundamental procurement reform has been launched. The new system envisages a two-tiered mechanism: the Ministry of Defense sets procurement rules and checks quality, while a new agency, the State Logistics Operator, conducts direct procurement. Previously, these functions were concentrated in the Ministry, which could lead to a conflict of interest. Separation of duties should eliminate corruption risks
Addendum
The agency explained that until May 2023, suppliers could actually set the prices at which they shipped food to military units on their own.
To do this, they set an uncompetitively low price for the entire meal package, which included all the food, on the eve of the tender. This allowed them to win the tender. And after winning, the supplier company would make changes to the cost of individual products. Namely, they would increase the price of mass product groups, such as vegetables, fruits, dairy and meat products, etc. And they reduced prices for non-marketable products such as strawberries and blueberries.
This allowed the total price of the food package to remain unchanged. It was this scheme that led to the infamous "eggs for 17 UAH"
Recall
Detectives of the National Anti-Corruption Bureau of Ukraine exposed a corruption schemeunder which the Ministry of Defense purchased food at inflated prices, allowing some suppliers to receive excessive profits from the military budget.
