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 order".
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 experts, etc.
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 Secretary noticed.
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.