Unpublished audits obtained by The New York Times show Ukraine ignored red flags in defense procurement as the country lost at least $1.2 billion to fraud, waste, and mismanagement in 2024 alone
The New York Times (1 and 2) obtained previously unpublished audits of the Ukrainian government’s military weapons procurement in 2024 and 2025. Ukraine’s State Audit Service and the Defense Ministry’s internal audit unit reviewed the work of the Defense Procurement Agency. Among other findings, the audits showed that Ukraine lost about $1.2 billion in 2024 alone to fraud, waste, and…
According to newly released audits obtained by The New York Times, Ukraine disregarded warning signs in defense procurement, resulting in at least $1.2 billion in losses due to fraud, waste, and mismanagement in 2024 alone. The State Audit Service and the Defense Ministry's internal audit unit examined the Defense Procurement Agency's work in 2024 and 2025.
The audits revealed that Ukrainian authorities fail to address red flags in weapons procurement. Contractors that overstate prices or miss delivery deadlines are seldom penalized; companies received contracts without proving their delivery capabilities, and some lacked proper licenses. Seven of the ten largest military contractors in Ukraine obtained new orders despite ongoing criminal investigations into fraud or previous contract failures, or the arrests of executives on corruption charges.
In 2024, the Pavlohrad Chemical Plant delivered thousands of defective mortar rounds, and the Defense Procurement Agency continued to award the company contracts worth hundreds of millions of dollars following its director's involvement in a corruption case. Auditors identified 18 companies that received new contracts despite failing to fulfill earlier agreements; six had not completed a single contract, and one provided only 50 out of 600 promised specialized drones, later ordering an additional 1,950 but delivering only 50 on time.
About $126 million was lost due to authorities rejecting superior bids and overpaying for weapons. Contracts were sometimes granted with insufficient legal backing, as seen in a case where companies remain embroiled in disputes over at least $100 million in advance payments on a deal that ultimately fell through. While the Defense Procurement Agency's response to the audit findings remains unknown, it is clear that military contractors worldwide, including the world's largest arms dealer and Ukrainian and American companies, benefited from the system while Ukraine suffered significant losses.
Written by urgent.news from Meduza (English)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
