At the end of September, in an interview with a Ukrainian media outlet, Defense Minister Rustem Umerov announced plans to merge the Defense Procurement Agency and the State Logistics Operator — two separate entities responsible for procurement for the Armed Forces of Ukraine. This idea was criticized by relevant public organizations and the Public Anti-Corruption Council under the Ministry of Defense. Eventually, the Minister of Defense stated that the reform of the Defense Procurement Agency (DPA) and the State Logistics Operator (DOT) would continue, “bringing these processes closer to NATO standards.” Furthermore, supervisory boards for both structures will be created soon.
Why did the minister's decision provoke a wave of criticism?
Any reorganization of a state institution usually takes at least six months, even under the best circumstances. During this time, the tasks assigned to the institution may not be properly fulfilled or could even come to a halt. The merger of the two agencies is likely to have extremely negative consequences during wartime, affecting the supply chains for weapons, food, and clothing for the military.
The Ministry has spent over two years launching and fine-tuning the work of both structures. Despite the repeatedly discussed idea of creating a single agency modeled on NATO countries, which would handle both lethal and non-lethal procurement, these processes were deliberately separated. This was due to the specific market conditions, its characteristics, and a certain need to counter the enemy's access to sensitive information.
It is important to consider that Ukraine is a unique case. No NATO country is currently engaged in such large-scale active combat, so their experience is not entirely applicable. Moreover, the parallel operation of two agencies in Ukraine has been supported by NATO, which also welcomed the Ministry of Defense's intention to establish supervisory boards for both agencies in the future.
What needs to be done now?
Understanding the importance of improving military and logistics procurement in Ukraine, NAKO (National Anti-Corruption Committee) believes this should be achieved through improving procurement procedures and ensuring the qualified selection of personnel.
We also emphasize the need to appoint supervisory boards for both agencies, involving independent, honest, and professional foreign specialists. This will not only ensure greater independence and impartiality of the agencies from the Ministry but also help strengthen trust from international partners. The selection process for the supervisory boards of the DPA and DOT has already been ongoing for over five months, so these boards must start working as soon as possible.