Ukrainian President Signs Decree to Reform Defence Procurement After Scandal

Ukrainian President Petro Poroshenko has signed a decree in order to reform defence procurement after two corruption scandals involving the state-run Ukroboronprom defence conglomerate came to light.

The scandal broke out following the release of successive videos by Bihus.info after the conclusion of an investigative project. The latest one accuses Ukroboronprom of procurements at prices five times higher than the market average. The first one was dedicated to how Oleh Hladkovskyi, President Poroshenko’s business partner, allegedly laundered $9.2 million in defense procurements.

Poroshenko signed the official order enacting the decision of the National Security and Defense Council of Ukraine (NSDC) "on the reform of the military-industrial complex and increasing the level of transparency in the implementation of the state defense order," according to a report by published by the press service of the President of Ukraine.

Domestic defense enterprises need to be strengthened to fulfil provide security, and to equip defense forces with new and modernized weapons and military equipment in the face of the Russian aggression, the report read.

Regular inspections of Ukrainian military-industrial enterprises, eliminating corruption risks, increasing transparency and strengthening control over the activities of the Ukroboronprom and other state-owned enterprises of the defense industry form a  part of the new reform under the signed decree.

In addition, Poroshenko promises to have Ukroboronprom’s accounts audited with the involvement of international experts and announce results to the public.