Estonian Defense Ministry finds shortcomings in contracts with Datasel — ERR News
Estonia’s Ministry of Defense, during an audit of contracts with ammunition supplier Datasel, identified shortcomings in counterparty checks, risk assessment and the documentation of decisions. At the same time, the working group found no evidence of deliberate concealment or deletion of documents and correspondence, ERR News reports.
Kristjan Mäe, the Ministry of Defense’s permanent secretary, told the parliamentary anti-corruption committee that ten representatives of the ministry and the Estonian Centre for Defence Investments (RKIK) worked on the report. They processed 428 gigabytes of data from document management systems, classified information registers, email inboxes and other official platforms.
Problems with checks and documents
According to Mäe, the justification for selecting contractors and the counterparty checks carried out should have been more thorough and were not documented systematically. Documents could not always be found or linked to specific contracts and decisions. RKIK also lacks the legal basis and necessary access to databases to conduct counterparty checks independently.
The report states that meeting minutes did not always convey the substance of discussions and the reasoning behind decisions made. Internal memos may not have contained sufficient information about facts and risks, while important working information sent through various channels was not always registered. At the same time, the available materials were sufficient to verify the legality of the agreements, and unregistered documents were systematized or entered into registers during the audit.
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Five contracts and supply risks
The first recorded communication with Datasel as an intermediary dates to December 1, 2023. According to RKIK Deputy Director General Asko Kivinuk, on that day intermediary Erik Malmsten sent the center’s director general the first invitation to a meeting.
Mäe stated that the conclusion of the contracts generally complied with the applicable requirements, RKIK’s authority, procurement procedures and legislation. However, in relation to five contracts with Datasel, risks associated with the company’s actual ability to supply products, the availability of components and compliance with deadlines gradually materialized throughout 2025.
Advance payments under each contract were made separately and within the deadlines set by the agreements. Since the payments were made over a short period, RKIK could not identify delivery delays or non-compliance of goods before the next payment obligations became due. Mäe also reported that, using funds from the European Peace Facility, RKIK delivered 93,268 rounds of ammunition worth nearly €145 million to the Armed Forces of Ukraine.
