Transparency of defense procurements

Transparency of defense procurements 

Draft bill #8381 of January 24, 2023 

Cosponsors: a group of MPs from Servant of the People, Holos, European Solidarity, Batkivshchyna, and Restoration of Ukraine factions 

Who is affected: officials from the Ministry of Defense, service providers, service members, and Ukrainian citizens. 

Summary of the bill: 

• it will be prohibited to buy goods and services under a simplified procedure if the online procurement system is not used 
• under martial law, procurements by the Ministry of Defense will be restricted by the following requirements: 

• procurements over ₴200 thousand, a client will be obliged to publish online a report about a defense procurement agreement if the procurement was concluded not via the online procurement system (for procurements of defense services and services essential for defense and security — over ₴1.5 mln) 
• a report about an agreement will have to include information about the client, procured goods or services, and prices per item/service. For procurements of services of providing food, a report also will have to include the titles of particular items, price per item, and price of each provided service 

• if substantial changes are introduced in such an agreement, the client will have to publish a notification about this fact. 

Why this is important: 

• on January, 21, the media shared the results of a journalist investigation. According to the media, the food for service members is procured by the Ministry of Defense for prices several times higher than market prices 
• the Minister of Defense Oleksii Reznikov refuted these accusations. However, he supported the dismissal of his deputy responsible for the procurements. Also, the National Agency on Corruption Prevention ordered the minister to investigate the incident. 

What is right: 

• the transparency of procurement procedures is important not only for keeping the public informed but also for effective spending of public funds and providing the military with goods and services of proper quality. In the time of war, it is of high importance 
• the bill is trying to address the causes and consequences of a crisis and scandal in the Ministry of Defense 
• better transparency and increase in public trust in government bodies. In the time of war, citizens’ trust in the state and government bodies is of high importance.