The Yarovaya Factor: Why a public figure who advocated for changes in the procurement system of the Ministry of Defense is now criticizing them

The Yarovaya Factor: Why a public figure who advocated for changes in the procurement system of the Ministry of Defense is now criticizing them

Kyiv  •  UNN

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Recently, Dana Yarovaya, a well-known public figure and member of the Public Anti-Corruption Council at the Ministry of Defense, has become more active in the media space.

The presentation and gradual launch of the State State Enterprise of the Ministry of Defense of Ukraine "State Logistics Operator", logically, should reduce the degree of the degree of discussion around this structure, which will now be engaged in non-lethal procurement for the needs of the Ukrainian army. DOT Director General Arsen Zhumadilov has repeatedly stated, the new state-owned enterprise is going to attract more national producers, reduce procurement number of national producers, reduce purchase prices, and eradicate corruption from the bidding process, UNN writes.

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And it is obvious that any conclusions about the feasibility of creating of the "State Logistics Operator" and its effectiveness can be made when the first procurement takes place.

At the same time, it seems that some people who actively criticized the previous leadership of the Ministry of Defense are already expressing dissatisfaction with the dissatisfaction with the actions of the new defense ministry team.

In particular, recently, a well-known public figure, a member of the Public Anti-Corruption Council a well-known public figure, member of the Public Anti-Corruption Council at the Ministry of Defense, Dana Yarovaya, has become more active in the media.

It was Yarovaya who was the icebreaker of the previous Defense Minister for procurement for the army, which was triggered by eggs at 17 hryvnia each.

It has once again become obvious to everyone that problems with with the procurement of food for the Ukrainian army really exist and need to be to be solved. In fact, this is what the new team of the Ministry of Defense did, but again but again, it came under criticism.

If we analyze Yarovaya's recent broadcasts on one of her Youtube channels, we can identify several of her key claims.

Arsen Zhumadilov has repeatedly said that food procurement food products will continue to be procured from a catalog of 409 items, which will be divided into 25 categories of product groups.

Yarovaya states that a working group was set up to analyzed the price offers of bakery producers and came to the to the conclusion that direct purchases from the manufacturer would allegedly cost more by 20-30%.

Elementary economic logic suggests that when purchasing goods directly from the manufacturer without the participation of an intermediary, there is no reason for its rise in price.

Moreover, in numerous comments to UNN, producers of of various food products, including bakery products, almost unanimously said that the exclusion of intermediaries and direct competition between producers will lead to a reduction in purchase prices and savings budget funds.

Yarovaya also does not like the fact that the DOT plans to separate the procurement of the products themselves and the procurement of services for their delivery.

Although, in the context of eliminating intermediaries, this is an absolutely logical step when a manufacturer delivers products to a distribution center and a logistics company delivers it to the location of military units.

In addition, Yarovaya says that the cost of goods that will include a 0.4% agency fee.

First, although DOT is a state-owned enterprise, it is an enterprise that will have to pay income tax and dividends to the state.  Second, the revenue ceiling is set at 250 million per year, which means that with large procurement volumes, the amount of agency will be reduced with large procurement volumes.

The most interesting thing is that, in general, Yarovaya, in fact, contradicts itself contradicts. A man in the midst of a full-scale war went on a somewhat fair, crusade against the Ministry of Defense to get rid of certain negative phenomena.  And now he accuses the new team of the of the Defense Ministry that it wants to break the system and build a new one during the war. the system and build a new one, but this does not happen, and according to Yarovaya, this is a bad story.

After the appointment of Rustem Umerov as Minister of Defense there were rumors that Yarovaya might become his deputy for logistics and public procurement. logistics and public procurement.

She never got the position. She did not confirm the rumors, but, in fact, she did not deny them either.

Maybe this is the reason for Yarovaya's criticism and skepticism?

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