Estonia finds two more RKIK contracts worth millions at risk of collapse
Beyond the already known €70 million problem involving the company Datasel, Estonia's Centre for Defence Investments (RKIK) has run into trouble with two more firms whose contracts total around €10 million. The issue was raised at Riigikogu's anti-corruption committee.
Estonia's parliamentary anti-corruption select committee reviewed the use of state funds and corruption risks in the defence sector on Thursday, September 3. Beyond the already known case of unfulfilled ammunition supply contracts for Ukraine worth €70 million, it emerged that problems extend to two additional companies.
Outgoing Defence Minister Hanno Pevkur told the committee that just under €60 million relates to several contracts with the company Datasel, while roughly another €10 million consists of advance payments under contracts with two other firms. He declined to name these companies for now, saying the Centre for Defence Investments (RKIK) still needs to sort out the situation.
Centre preparing to go to court
RKIK head Elmar Vaher said negotiations with the two companies produced no results, so the centre is preparing to take legal action to protect its interests. Separately, the Indian company involved in the original €70 million case has already filed lawsuits against Estonia.
Committee chair Anastassia Kovalenko-Kõlvart said that if RKIK indeed lacks adequate risk analysis and vetting of business partners, as revealed at the hearing, this raises questions about the centre's other contracts as well, given that RKIK's total investments run into hundreds of millions of euros.
Vaher acknowledged that the centre was not sufficiently prepared for the sharp increase in the defence budget, but said management of specific areas, internal controls and audit mechanisms have since been put in order, along with a clearer decision-making process so responsibility no longer rests solely with the director general.
Prime Minister Kristen Michal said the Defence Ministry's plan now includes a full inventory of the defence sector, to provide a complete picture of stocks and assets, their locations and usability. In addition, Vaher will prepare an overview of all concluded contracts and potential state obligations.
