Estonia defense procurement agency faces legal dispute over ammunition contract

Estonia's state defense procurement agency, RKIK, is embroiled in a legal dispute involving Datasel S.R.L. and Miava Capital. Datasel is demanding millions of euros from the state following a controversy regarding a 60 million euro contract for ammunition that failed to materialize despite significant advance payments.

The Estonian state has taken both companies to court. The scandal has led to political fallout, including the resignation of Defense Minister Hanno Pevkur, who took political responsibility for the situation. Prime Minister Kristen Michal has noted that several aspects of the contract, which involved payments to an unknown company, remain unclear.

In response to the controversy, Member of Parliament Rain Epler has submitted formal inquiries to RKIK Director General Elmar Vaher. The questions focus on the agency's risk management, physical inspection procedures for suppliers, and the verification of production capacity before making large advance payments for weapons and ammunition.