The study of the technical and financial offer was completed in one day, and the award was approved without a “Tenders” meeting.
Paying millions to the Italian side before the due date and without benefiting from some clauses
Loading public money 485 million euros, the value of bills inflation, despite the lack of government approval
Without sufficient studies or determining an estimated value, and without the necessary financial funds, 3 meetings held by “passing” and sham approvals, the Ministry of Defense concluded the billion-dollar deal to purchase Eurofighters and its accessories, which burdened public money with the burdens it had carried through the policy of “imposing the order.” Reality” sometimes, and other times hiding some aspects from the decision-maker.
This is what the Audit Bureau concluded in its report on the Eurofighter purchase deal and the suspicions and abuses related to it, where it identified a number of shortcomings, observations and violations committed by the Ministry of Defense that constitute a disregard for the sanctity of public money since the beginning of the deal, foremost of which is ignoring the plans and programs approved by the military administrations, and direct contracting with The Italian company, despite the presence of 3 other companies, as well as the uncertainty of fair prices.
The Bureau revealed that the Ministry of Defense had studied the technical and financial offer of the Italian company, amounting to 7.759 billion euros, and approved it within one day. pass” without holding a meeting for this purpose.
He pointed out that the public money was charged 485 million euros as a result of the inclusion in the contract of an equation for calculating the value of inflation that is subject to increase and is calculated over the entirety. The value of the invoices submitted by the company without deducting the percentage due from the advance payment despite The absence of approval from the Council of the Ministry to include it in the contract.
He pointed out that the ministry canceled the item arming aircraft and did not conclude a contract in this regard to coincide with its industry plan and dates of delivery to be ready for operations, and followed a policy of imposing a fait accompli by concluding contracts and arranging large financial obligations on the state worth more than 9.5 billion euros without regard to the availability of Covered funds.
The bureau monitored the approval and disbursement of company bills worth 520 million euros before their due date, and granting the supervisory officer abroad powers that do not belong to him that entail the disbursement of sums of money, pointing to the unjustified loading of public money with additional amounts as a result of the ministry’s acquiescence and negligence towards meeting the company’s demands, by calculating inflation rates with increase and for undue periods.
He revealed the opening of bank accounts abroad without obtaining the required approvals, the failure to observe the sanctity of public funds and the ministry’s disposition of them away from the laws and financial instructions regulating them, and placing state funds and the accounts of the supervisory office at the disposal of an Italian officer without justification.
The bureau stated that 27.8 million euros were transferred to the Italian side before completing the training courses and without benefiting from the amount in training pilots according to the specified program, in addition to disbursing 1.9 million euros with an increase without explaining the reasons for that.
The Bureau recommended that the Ministry of Defense take the investigation procedures and hold the perpetrators of the Eurofighter and Tender Committees accountable due to negligence, and to hold the responsible members of the Supervisory Office accountable for disposing of public funds without being bound by the procedures.
He stressed the need to avoid burdening public money with additional amounts, taking into account the rationalization of spending and determining the aspects of exchange that can be dispensed with in line with the state’s financial policy, in confirmation of the decisions of the Council of Ministers issued in this regard.
He pointed to the need to adhere to the financial instructions regulating the payment of financial payments and sums of money abroad, and taking into account not to follow the policy of imposing a fait accompli by arranging large financial commitments, which forces the concerned authorities to take measures and issue laws to manage these amounts, which increases the financial burden on the public treasury.
1 The ministry ignored the plans and programs approved by the military departments, took decisions and made amendments to some contracts of a military nature without referring to the Military Defense Council or the departments concerned.
2 Purchasing combat planes through direct contracting from a European company, despite the presence of three other companies that enter into one organization to manufacture those planes without explaining the reasons for that.
3 The Ministry’s failure to prepare sufficient studies or determine an estimated value before purchasing the aircraft, and the failure to verify the suitability and suitability of prices, and the sham approvals issued by the Ministry regarding the study of the company’s technical and financial offer.
4 The Ministry’s solicitation of purchase and awarding offers to the company without having the funds available in the budget to cover this, in violation of the financial laws and instructions issued in this regard.
5 The Ministry’s Tenders and Practices Committee’s failure to comply with its competencies stated in the ministerial resolution issued in this regard, and its members’ breach of the duties and tasks entrusted to them.
6 The ministry follows the policy of imposing a fait accompli by concluding contracts and signing memoranda of understanding with others despite the lack of financial appropriations in its budget to cover this, which obliges the competent authorities in the state to take measures to manage these appropriations and the consequent increase in financial burdens on the state’s general budget.
7 Granting the supervising officer abroad powers that do not belong to him, entailing the disbursement of sums of money and his disbursement of some bills before their due dates, and authorizing him to carry out the tasks of military and technical departments within the ministry without justification, which weakens the tight control and follow-up on those works.
8 Loading the public money with additional amounts without justification as a result of the ministry’s acquiescence and negligence towards meeting the company’s demands by calculating the inflation rates by increase and for undue periods.
9 The ministry canceled the item arming the plane without referring to the General Committee for Armament and the Military Defense Council, and the absence of an armament contract for the plane to date to coincide with its industries plan and delivery dates to be ready for military operations.
10 The Ministry was unable to use the military base and equip it on time due to the failure to deliver electricity to it to date, which indicates the lack of necessary coordination in this regard with the Ministry of Electricity and Water before concluding the contract, which results in delaying the timetable for the arrival of the aircraft.
11 Signing a memorandum of understanding with the Italian government that entailed financial obligations on the state without obtaining prior approvals from the regulatory authorities, and the lack of funds for disbursement in violation of the financial laws and instructions issued in this regard.
12 Opening bank accounts abroad without obtaining the required approvals and in violation of the conditions stipulated in the memorandum of understanding and not complying with the controls contained in the circular of the Ministry of Finance when opening such accounts in violation of the financial instructions issued in this regard.
13 Failure to observe the sanctity of public funds and the ministry’s disposal of it away from the laws and financial instructions regulating it.
14 Poor and appropriate preparation and the failure to conduct the required studies regarding the training of pilots and ground crew, which caused an overlap in this regard between the contract concluded with the Italian company and the memorandum of understanding concluded with the Italian government, and the disbursement of increased amounts and payment of the value of training for all stages before completing the training process without giving reasons that.
15 Non-adjustment of the amounts spent on the documentary credit on a timely basis, and the fact that many of the amounts are added to the liabilities account – sums deducted on the types of budget expenditure items for more than one fiscal year without the Ministry being able to settle them, which caused confusion in the financial and accounting work of the Ministry.
16 Attaching the director of the joint international office and one of the officers working in the office to exceptional external training courses without obtaining approval from the competent authorities in the ministry, in violation of the decisions of sending them abroad, which burdened the ministry’s budget with additional financial burdens without justification.
1 The necessity of preparing integrated professional studies for major armament projects to show the need to get rid of the current military equipment and the importance of replacing it with new equipment with advanced and modern specifications, determining the estimated value of those projects, on the basis of which the budget is estimated, and verifying the suitability of the prices offered by the companies.
2 The necessity of prior coordination with the concerned authorities in the country towards managing the financial credits necessary for disbursement on such type of contracts before carrying out the procurement procedures in accordance with the relevant financial laws and instructions issued by the Ministry.
3 Taking into account conducting adequate technical studies and determining the necessary needs before contracting and concluding agreements to prevent any modifications to the works except in the narrowest limits and after taking the required approvals from the competent authorities in the Ministry.
4 The necessity of soliciting several offers from specialized factories and identifying the elements and foundations of technical and financial evaluation that fulfill the requirements of the Ministry of Defense.
5 The ministry took the investigation procedures and held the perpetrators accountable among the Eurofighter Committee members and the members of the Ministry of Defense’s tenders and practices committee because of their neglect of the duties entrusted to them and their approval of the project without the financial appropriations required to spend on the project and the study of the harmonization of prices and technical details of the project, each within its competence.
6 Commitment to the systems, regulations, financial procedures and administrative decisions approved and in force in the Ministry of Defense to approve the work completion forms and sign invoices by the beneficiary party and present them to the financial affairs sector and the financial controllers for review before disbursement by canceling the authorization granted to the project supervisory officer to sign the invoices.
7 The ministry took the investigation procedures and held accountable the responsible members of the supervisory office because they disposed of public funds without being bound by the financial and administrative procedures in force in the ministry and bypassing the powers of concluding contracts without authorization from the competent authority, and holding those responsible for stopping the pilot training program by not adhering to the training program contained in the memorandum of understanding. and amending it without referring to the competent authority in the Ministry.
8 Taking into account that contracts do not include any conditions or equations of inflation, etc., that entail adding financial burdens to the budget, unless they are explicitly disclosed to the decision-maker in the ministry.
9 The necessity for the Ministry of Defense to activate the procedures followed by it on the stages of completion of infrastructure projects, from approving designs, sub-contractors, and others through the sector concerned with the engineering sector of military installations.
10 The necessity of verifying the delivery of the necessary electrical supply to infrastructure projects before their completion to achieve the maximum benefit from those projects.
11 It is necessary to commit to presenting draft contracts and agreements to the supervisory authorities in the state before concluding them to obtain the required approval in accordance with the laws issued for the establishment of these authorities and the tasks entrusted to them, and to review them by the specialists in the ministry and the beneficiary entity in accordance with legal and financial procedures and in a manner that achieves the higher interests of the Kuwaiti army.
12 Avoid charging the public money with additional amounts, taking into account the rationalization of spending and determining the aspects of exchange that can be dispensed with in line with the state’s financial policy, in confirmation of the decisions of the Council of Ministers issued in this regard.
13 The necessity of adhering to the financial instructions regulating the payment of financial payments and sums of money abroad and taking all measures towards their prompt settlement in accordance with the procedures followed in this regard and for the regularity of financial and accounting work.
14 Warning to the military liaison and supervision offices abroad to follow the financial instructions for the rules of exchange and the payment of obligations and not to take decisions that entail financial obligations without referring to the competent authorities in the Ministry as provisions for control and follow-up on those works.
15 Taking into account that the Ministry does not follow the policy of imposing a fait accompli by arranging large financial commitments without the availability of the necessary funds for them, which forces the concerned authorities to take measures and issue laws to manage these amounts, which increases the financial burden on the public treasury.