Audit reveals $240m for fortifications left unused in 2024

Business

16 February, 03:17 PM

Systemic flaws — including fragmented planning and weak internal control — plague critical infrastructure protection and fortification construction, Accounting Chamber Chair Olha Pishchanska said on Feb. 16.

She highlighted these issues at a meeting on corruption risks initiated by the National Agency on Corruption Prevention (NACP).

"I presented colleagues with separate conclusions of our audits for recent years," Pishchanska reported on Facebook.

Fortification Failures

In the fortification sector, the audit revealed:

  • Inconsistent regulatory frameworks and unstable management structures

  • Planning flaws leading to chaotic work organization and procurement

  • Risk of inflating resource and service costs by over 135m UAH ($3.3m);

  • Non-use of approximately 10bn UAH ($240m) in allocated budget funds in 2024.

"Recommendations for this audit are being implemented, and some flaws were eliminated even during it was conducted," Pishchanska noted.

Energy Sector Gaps

Regarding critical energy infrastructure, the audit found significant gaps in the initial approach to the experimental protection project.

"Participants' organizational capacity and management mechanisms were not taken into account," Pishchanska explained.

"So far, recommendations implementation remains at a low level, mostly due to the need for new regulatory frameworks."

She emphasized that even experimental projects require clear internal rules and liability models.

Accounting Chamber earlier reported that over half of Armed Forces soldiers are forced to buy gear at their own expense.

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