Lithuanian President flags systemic defense procurement flaws

Lithuanian President Gitanas Nausėda has pointed to significant systemic problems within the country's defense procurement system, urging swift reforms. He described a "mess" characterized by unclear responsibilities and inefficient decision-making algorithms that often lead to prolonged periods between identifying needs and fulfilling them.

"We need to fix this as soon as possible, because, first of all, the deadlines themselves are unsatisfactory. We cannot afford the luxury of spending several years while implementing one project or another, because we do not have that much time," Nausėda stated, emphasizing the critical nature of timely acquisitions for national security.

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VK highlights certain systemic issues that we must fix. First of all, regarding the principle itself, how responsibilities are divided, the decision-making algorithms. There is a lot of disorder here, which often ends either in a clear lack of definition of responsibility, or a very long period from the identification of needs to their satisfaction.

The president also underscored the necessity of effective utilization of state funds allocated for defense. He stressed that the public, which has diverted resources from other needs, must be assured that these funds are spent purposefully and contribute directly to the nation's security. "The public has taken these funds away from their other needs, and they must know that these funds are not just being spent somewhere, but are being spent meaningfully and they are increasing our state's security," he said.

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We need to fix this as soon as possible, because, first of all, the deadlines themselves are unsatisfactory. We cannot afford the luxury of spending several years while implementing one project or another, because we do not have that much time.

A recent audit by the National Audit Office (VK) revealed a sharp increase in failed arms and military equipment procurements, rising from 24% in 2023 to 59% last year. Auditors attributed this to shifting needs, poorly prepared operational requirements, late supplier offers, or unacceptable prices. The audit also found that decision-making for some acquisitions is excessively slow, with 42% of assessed procurements taking between 30 and 374 days for coordination with advisory bodies, far exceeding the recommended 180–240 day maximum for international procurement.

While the audit did not identify "tragedies," it highlighted deficiencies that require immediate correction. The Ministry of National Defence has announced plans to submit proposals to the government in the autumn aimed at streamlining defense procurement processes.

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The public has taken these funds away from their other needs, and they must know that these funds are not just being spent somewhere, but are being spent meaningfully and they are increasing our state's security.