Pointing fingers at defense system problems: disarray in arms procurement

Lithuania's State Audit Office has identified "considerable disarray" in the nation's defense system procurement processes, particularly concerning armaments, according to a recent audit covering 2020-2025. State Controller Irena Segalovičienė likened the situation to using a "TV remote to operate a state-of-the-art military radar," highlighting a critical gap between the country's growing military hardware and its outdated systems.

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Today we arrive at these races with a very reliable "Volkswagen Passat," but we all need to switch to much more modern transport, designed specifically for such speed races for our security.

The audit revealed a lack of centralized coordination, with no single entity responsible for assessing defense needs, managing allocated funds, or evaluating the effectiveness of purchases. Segalovičienė emphasized the need to transition from manual tracking to integrated information systems that provide real-time progress updates for decision-makers. The State Audit Office also pointed to digitalization challenges, with information scattered across various systems and an overabundance of internal organizations involved in procurement.

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We clearly recommended moving from Excel sheets to information systems that would allow decision-makers to quickly, here and now, every day, state what the progress is.

Artūras Skardžius, chairman of the Audit Committee, expressed concern that while defense spending is rapidly increasing, the capacity to manage and utilize these funds effectively lags decades behind. He noted that significant funds are spent on intermediaries and that public procurement procedures often disregard legal requirements, including market research. Skardžius stated, "The war is at our doorstep, and the system to use these funds effectively for defense, to achieve the greatest effect, is still decades behind."

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It's the same as operating the most modern military radar with a TV remote – it doesn't work.

Defense Minister Robertas Kaunas assured that many of the identified problems are being addressed. He mentioned the establishment of central purchasing organizations like the Defense Resources Agency and the Infrastructure Management Agency. However, he acknowledged the ongoing challenge of balancing procurement speed with transparency, especially when hundreds of millions are spent through non-public negotiations. Former Minister Laurynas Kasčiūnas echoed this dilemma, questioning whether to prioritize speed through non-public negotiations for essential items like anti-drone technology or opt for slower, potentially less effective public tenders.

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The war is at our doorstep, and the system to use these funds effectively for defense, to achieve the greatest effect, is still decades behind. There is neither digitalization nor the capacity to effectively carry out public procurement.