Ukraine's Defence Minister wants to create Military Prozorro procurement system

Oleksii Reznikov, Ukraine’s Defence Minister, is in favour of partial openness of defence procurement, following the example of the Prozorro system [public electronic procurement system – ed.]; the official proposes to create Military Prozorro.

Source: Reznikov, at a press conference on Sunday, 5 February, reports Ukrinform news agency

Quote: "My idea is currently being discussed so that we will be able to publish [data on procurement] without [specifying] a legal address or location, but [specifying] the volume, the amount of the contract, etc., so that the public can see it not after the agreements are concluded, but before. Together with Yuliia Svyrydenko, Deputy Prime Minister, we met with the prime minister, because she [Svyrydenko – ed.] has experts on Prozorro, and I asked her: develop a Prozorro program that would be... let's call it Military Prozorro. That is, let there be certain restrictions, but we all trust Prozorro, and I hope that we will succeed."

Details: In addition, the Defence Minister noted that purchasing food for military servicemen can be made seasonal, for a shorter period of time.

"We have now agreed with the Verkhovna Rada [i.e., parliamentary] committee to try to review the legislation that will allow such purchases to be made seasonal for shorter periods, but at the same time, our main goal today is the stable and high-quality supply of Ukraine’s Armed Forces, especially now, during wartime. This is a key priority," the minister emphasised.

Reznikov also said that a public anti-corruption council will be created under the Defence Ministry.

"We will form a working group of anti-corruption activists to create a public anti-corruption council under the Defence Ministry," he said.

Reznikov noted that such a council would allow the ministry to receive  public examination. The minister emphasised that it is very important to close access to certain information during martial law and at the same time provide the opportunity for society to control public funds.

He noted that he held meetings with parliamentary committees, during which they discussed updating the legislation. In particular, the MPs plan to normalise procurement in the security and defence sector in such a way that important information will be protected, but these purchases will be made more public.

At the same time, Reznikov stated that the facts of the handing over suspicions to representatives of the Defence Ministry do not relate to the food procurement system.

"Today, I am not aware of a single fact of suspicion being handed over to anyone, or the application of a preventive measure of detention against any official of the Defence Ministry related to the food procurement system, with those contracts that became the subject of the research of journalist, Mr. Yurii Nikolov," he emphasised.

Background:

• On 21 January, Zn.ua reported that the ministry purchases food for servicemen at a cost two- to three-times higher than that in Kyiv stores. 
• The Ministry of Defence called this information a lie and manipulation and promised to contact the Security Service of Ukraine (SSU) at first. Minister Oleksii Reznikov rejected the accusations.
• Later, Viacheslav Shapovalov, Deputy Minister of Defence, resigned and was fired. Bohdan Khmelnytskyi, Head of the State Procurement Department at the Ministry of Defence of Ukraine, has been dismissed from his position as well.
• On 1 February, Khmelnytskyi was accused of embezzling state funds and was arrested. According to the investigation, he purchased almost 3,000 bulletproof vests worth more than US$2.9 million for Ukraine’s Armed Forces, which turned out to be of poor quality. Viacheslav Shapovalov was arrested for two months and was set a multi-million-dollar bail on 2 February. He is suspected of lobbying for the conclusion of contracts for the supply of food for the military at inflated prices, as well as the purchase of body armour, helmets, clothing and other items for the needs of the Armed Forces of Ukraine of poor quality for a total amount of over UAH 1 billion [roughly US$24,691,000].
• On 2 February, the State Bureau of Investigation reported that, together with the Security Service of Ukraine (SSU), it had exposed and detained a criminal group that was overcharging the Ukrainian Armed Forces for produce, and supplying "imaginary" food. In particular, the official press release referred to the purchase of "eggs for 17 hryvnias" [approximately US$0.46]. Later, Pecherskyi District Court of Kyiv City arrested 5 people whom the Defence Ministry suspects of conducting procurements under unreasonably high prices.

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