Estonian Ministry of Defence to take over asset management after audit

The Estonian National Audit Office has identified serious accounting and contract management issues within the Ministry of Defence's jurisdiction, warning that these discrepancies increase the risk of misuse of state funds and assets. The audit highlighted concerns regarding a 1.2 billion euro stock balance.

In response, Defence Minister Hanno Pevkur announced that the Ministry of Defence will temporarily take over the management of defense assets. While Pevkur acknowledged the audit's findings, he maintained that taxpayer money has been used correctly and that the ministry is aware of its inventory, including artillery and ammunition. He noted that the discrepancies often stem from the fluctuating value of assets and the massive scale of defense stocks.

To rectify the situation, the ministry has hired a dedicated inventory team, updated internal accounting rules, and initiated a full inventory audit. The goal is to stabilize the accounting processes before returning management responsibilities to the Defence Forces.