Pevkur: Estonian Defence Ministry to temporarily take over management of Defence Forces' property

Estonian Defence Minister Hanno Pevkur said in an interview with "Aktuaalne Kaamera" that the National Audit Office's recommendation to temporarily transfer management of the Defence Forces' property to the ministry is correct and will be implemented.

Pevkur recalled that a year-ago audit raised 36 remarks concerning the Estonian Centre for Defence Investments, of which 32 have since been resolved, while four remain — some of which, he said, may be impossible to fix because they relate to older contracts still in force. The ministry has hired a separate team to carry out an inventory, changed internal accounting rules, and ordered a full inventory to be conducted.

An accounting problem, not missing equipment

The minister stressed that the state knows exactly how many howitzers and artillery shells it owns and is aware of the state of warehouse stocks. The issue, he said, lies more in the fact that the value of property changes over time, while the overall accounting system for the Defence Forces' property and stocks is extremely large in scale. Still, Pevkur acknowledged that order must be maintained regardless of the system's size.

Management will be handed to the Defence Ministry temporarily. Pevkur drew a comparison with the Education Ministry's experience, which fully took over financial management of Harno, the Education and Youth Board, put it in order, and returned it after roughly six months to a year. He expects a similarly quick turnaround this time before control reverts to the Defence Forces.

Responsibility and the minister's position

Asked about accountability, Pevkur said that specific individuals who failed to properly carry out the inventory work will be identified through cooperation with internal audit and internal control systems. Leaders of the defence agencies, as well as the ministry's secretary general, have said they do not plan to resign.

Asked whether he intends to remain in office, Pevkur said he will continue as minister for as long as he retains the trust of the prime minister and parliament.

The National Audit Office's audit uncovered serious problems in the work of the Defence Ministry, the Defence Forces and the Estonian Centre for Defence Investments (RKIK), including shortcomings in accounting for military property and stocks, breaches of accounting rules, issues with contract and advance-payment controls, and financial risks about which parliament had previously received different information.