An internal audit has revealed potential waste and graft within Ukraine’s Defense Ministry, according to reports. The findings target the Defense Procurement Agency, established in 2023 to combat corruption in military contracts but now suspected of mismanagement. The audit, covering early 2024 through March 2025, identified over $100 million in unexplained overspending and referred several cases for investigation.

The revelations highlight persistent challenges in addressing systemic corruption within Ukraine’s military procurement system. Tamerlan Vahabov, a former adviser to the agency, criticized the lack of accountability, stating, “They overpay for unknown reasons and without justification.” He added that wartime pressures have stifled efforts to enforce proper procedures.

The agency was created after scandals involving inflated contracts under then-Defense Minister Aleksey Reznikov, who resigned but faced no criminal charges. Ukraine’s reliance on a fragmented network of over 2,000 weapons suppliers has further complicated oversight, with some startups failing to deliver or lacking production capabilities. Domestic arms manufacturing, funded by Western partners, remains central to Kyiv’s military strategy amid budget constraints.

The audit underscores ongoing concerns about the Ukrainian military leadership’s failure to address corruption, despite efforts to reform procurement practices.