Estonia prepares lawsuits against two more defense companies over contracts
Estonia’s State Defense Investment Centre (RKIK) is preparing lawsuits against two more defense companies over payment and delivery problems. The total value of contracts with these suppliers is slightly over €10 million, ERR News reports.
Former Estonian Defense Minister Hanno Pevkur said that RKIK still allows for the possibility of settling the situation with the two companies. At the same time, the center’s director general, Elmar Vaher, said that an attempt to resolve the issue had yielded no result, so the institution is preparing to go to court.
Dispute with an Indian company
The new cases are unfolding against the backdrop of a dispute with the Indian company Datasel. According to ERR News, Estonia paid the company €59 million out of the total €70 million contract for artillery shells intended for Ukraine. The ammunition has still not been received.
RKIK has already gone to a national court over Datasel, and the case is also before the European Arbitration Court in Strasbourg. Questions have arisen in connection with the contract about the whereabouts of €11 million and the delivery of the shells itself.
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Changes at the Defense Investment Centre
Elmar Vaher, who has headed RKIK since January, linked the problems with the three companies to the institution’s lack of preparedness for a large-scale increase in the defense budget. According to him, the center has streamlined its decision-making process and clarified the division of powers.
Estonian Prime Minister Kristen Michal said that the Ministry of Defense would conduct a full inventory of the defense sector’s stocks and assets. Vaher is also to review all RKIK contracts and possible obligations for the state. Going forward, the defense minister and the commander of the Defense Forces will report to the government every month.
The scandal surrounding the procurement of shells led to Pevkur’s resignation. The Estonian parliament’s anti-corruption committee also discussed the case, while its chair, Anastassia Kovalenko-Kõlvart, criticized the approaches of the ministry and RKIK to assessing and reporting risks.
