The Ministry of Defence has not been able to fully remedy the shortcomings of earlier SAO audits. Of the 11 measures, four were not implemented at all and two only partially
PRESS RELEASE ON AUDIT NO 23/30 – 30 September 2024
During the Audit No 23/30, which we are summarizing today, the Supreme Audit Office (SAO) auditors returned to four previous audits* in the Ministry of Defence (MoD) and examined how the Ministry corrected the deficiencies identified then. The auditors found that of the 11 measures selected, four were not implemented at all and two were only partially implemented. For example, the Ministry has not yet introduced a system for ordering and distributing equipment that would simplify and speed up its distribution to all members of the army; nor has it purchased sufficient stock of certain types of equipment. Furthermore, it has not implemented the stipulated serviceability of tanks and has not ensured an adequate supply of spare parts for their repair. The renovation and modernisation of military sites is not proceeding as planned and there is a risk that the MoD will not be able to build facilities for the military equipment it is purchasing.
According to the auditors, the lack of implementation of the measures has a negative impact on the effectiveness, economy and efficiency of spending. The SAO also found shortcomings and risks in areas where the measures were implemented.
Regarding, for example, the army equipment, the original Audit No 18/17 showed that the funds spent on providing army equipment did not correspond to the needs of the army and, due to low stock levels, the MoD had to regulate the distribution of equipment. Also, the equipment distribution system was outdated. It has now become apparent that although the MoD has gradually increased the budget for the acquisition of equipment, it has not purchased equipment stocks corresponding to the increased amount. Almost CZK 1.4 billion remained unused. For example, the auditors found from the stock overview that even this March the Ministry was still 19% short of equipment items such as summer boots, reflective jackets, fireproof winter overalls, tactical vests, etc.
Another measure foresaw the launch of an electronic ordering system for equipment in 2022. This was to be followed by a project of equipment delivery service. The SAO found that although the MoD has created an ordering system, it will be in trial operation until March 2025. As of this April, 58% of the members of the Czech Armed Forces had access data to log in to the system. The objective that the ordering system should be used by all members of the Army and that the distribution of equipment should be easier and faster had not been met at the time of the completion of the Audit No 23/30. As the MoD postponed the follow-up project of the delivery service at the same time, the SAO assessed the funds used to set up the electronic ordering system as not being spent effectively.
During the Audit No 19/13, concerning armoured vehicles, the SAO found, inter alia, that the MoD did not sufficiently ensure the repair and maintenance of these vehicles, did not ensure the supply of spare parts and thus did not ensure sufficient operability of the tanks. The SAO's current audit showed that although the MoD has slightly strengthened its own repair capacities, it has not implemented major projects to increase the economy of funds earmarked for maintenance and repair of equipment. The construction of a multifunctional hall in Jaroměř, which is to be used for complex repairs of both established and newly introduced military equipment, has been postponed by seven years until 2032. And what about spare parts and the operability of tanks? The MoD has not met the stipulated serviceability of tanks and has not ensured a sufficient stock of spare parts. During the audit period 2019 to 2023, it did not enter into any separate contract for the supply of spare parts needed for tank repairs within its own repair capacity.
The SAO's current findings on Audit No 18/02, which examined real property intended for the needs of the Czech Armed Forces in 2018, indicate material shortcomings in meeting objectives related to the development and maintenance of real property. In particular, the renovation and modernisation of 11 prioritised military sites is not proceeding according to the time and financial plan. The MoD has so far invested approximately CZK 2 billion in the first phase of modernisation and renovation of the sites, which is only 14.5% of the planned CZK 14 billion. And as the investment actions are postponed in time, the SAO believes that the condition of the properties is likely to deteriorate further, with additional expenditure on their restoration and modernisation, and thus uneconomical spending. For example, the SAO found a significant risk that the MoD would not have time to build garages and related technology for newly purchased cannons. Although the first cannons are due to be delivered in 2026, no modernisation or related construction was under way at the site designated for their deployment at the time of the audit.
Communication Department
Supreme Audit Office
* Audit No 18/02 – State property and funds related to this property earmarked for tasks of the Czech Armed Forces; Audit No 18/17 – State property and funds spent on the acquisition and distribution of the equipment for officers of the Czech Armed Forces; Audit No 19/13 – Armoured vehicles of the Czech Armed Forces; Audit No 19/20 – University education of members of the security forces and soldiers of the armed forces.