Oleksandr Turchynov: Enhancing the transparency of procurements under the state defense order will strengthen the state’s defense capacity
Enhancing the transparency of
procurements while implementing the state defense order will strengthen the
state's defense capacity.
This was stated by Secretary
of the NSDC of Ukraine Oleksandr Turchynov in his speech during a roundtable
discussion "Problematic issues of reforming Ukraine's defense-industrial
complex. Enhancing the transparency of procurements under the state defense
The event, chaired by the NSDC
Secretary, gathered together representatives of the NSDC Staff, the Verkhovna
Rada Committee on National Security and Defense, the Presidential
Administration of Ukraine, the Ministry of Economic Development and Trade of
Ukraine, the Ministry of Defense of Ukraine, the General Staff of the Armed
Forces of Ukraine, the State Property Fund of Ukraine, the State Concern
"Ukroboronprom", the National Institute for Strategic Studies, the "League of
Defense Companies of Ukraine" association, the Center for Army, Conversion and
Disarmament Studies, "DEFENSE EXPRESS" Media and Consulting Company, military
According to the Secretary of the NSDC of Ukraine, financing of the state defense order has increased 19,5 times over the past five years. "These funds must be used
with maximum efficiency, and conditions for attracting investment and
innovative resources to our defense industry should be created", - he said.
The issues of restructuring
state-owned enterprises, optimization of their production capacities, the
establishment of vertically integrated structures by production segments on the
corporate basis, and the creation of a modern management system for the
defense-industrial complex were considered.
In this context, Mr. Turchynov
stressed that the reform of the defense-industrial complex is one of the
priorities of the NSDC of Ukraine.
"The reform of the
defense-industrial complex of Ukraine is taking place well underway, and there
are already many steps taken in this direction - this is a gradual
transition to NATO standards in the development and production of new weapons
and military equipment, increased production and product quality,
liberalization of foreign economic activity, implementation of direct contracts
for defense ministries on the procurement of weapons abroad, etc.", - the NSDC
At the same time, according to
Mr. Turchynov, excessive secrecy and low competitiveness in implementing the
state defense order affect defense procurements. "Procurement of products,
works and services constituting state secret is carried out, in most cases,
without the application of competitive procedures with respective
consequences - the lack of the possibility of qualitative selection
of the state defense order contractors", - the NSDC Secretary noticed adding
that this leads to the subjective assessment the performed procedures,
increases corruption risks and budget expenditures.
"Limited access to information
about measures planned under the state defense order means the lack of a fully
fledged competitive environment", - he added.
Moreover, according to Mr.
Turchynov, due to the "closeness" of the state defense order, there is
virtually no public control in this area, "effective functioning of which can
be ensured only through free access to relevant information", - the NSDC
Secretary stressed adding that undoubtedly there exists such information the
disclosure of which may harm the national security of Ukraine. "However,
restrictions on state secret should be justified", - he pointed out.
During the discussion with the
experts, suggestions were made to resolve the problematic issues of reforming
the defense-industrial complex and to improving the state defense order.
"Today, we have heard a lot of constructive ideas
that will be analyzed and used in determining the ways of reforming and
developing Ukraine's defense-industrial complex, enhancing the transparency of
the state defense order, which should be further implemented in the relevant
laws and other regulations", - the Secretary of the NSDC of Ukraine summarized.