The Ministry of Defense has changed the procurement system of foodstuffs for the Armed Forces of Ukraine. Limit prices were introduced

The Ministry of Defense of Ukraine changed the procurement architecture of foodstuffs for the army in accordance with the standards of NATO countries. This should eliminate the risks of corruption.

This was reported by the press service of the department.

They explained that until May 2023, suppliers could independently set the prices at which they shipped products to military units. On the eve of the tender, they set uncompetitively low prices for all products. This made it possible to win the tender. And after the victory, the supplier made changes in the price of individual products. Prices for mass groups of goods (such as vegetables, fruits, dairy and meat products, etc) were made high, and prices for non-marketable goods (strawberries, blueberries) were lowered. This made it possible to keep the total price of the product set unchanged. According to this scheme, "eggs for UAH 17" appeared, the Ministry of Defense explained.

Now, the Ministry of Defense sets maximum prices for foodstuffs above which suppliers cannot supply products to the military.

"For example, if earlier, according to NABU, suppliers set the purchase price for potatoes at UAH 16 per kg, then at one of the tenders of the Ministry of Defense in December 2023, they specified a maximum price of UAH 10.35. The situation is similar with cabbage (UAH 28 and UAH 14.54, respectively) and onions (UAH 39 and UAH 22.86, respectively)," the report said.

The Ministry of Defense writes that the procurement reform has been initiated. The new system envisages a two-level mechanism: the Ministry of Defense establishes procurement rules and checks quality, and direct procurement is carried out by a new agency, the State Rear Operator. Previously, these functions were concentrated in the ministry, which could lead to a conflict of interests. The division of responsibilities should eliminate corruption risks.

The state operator of the rear has already announced in the “Prozorro” system the first tenders under the new procurement system, which will start from the II quarter.

• On February 14, the NABU informed that it had discovered a scheme that allows for inflated prices for some categories of products for the army. The scheme is based on the existing procurement system. It allows unscrupulous suppliers to earn excess profits and profit from the military in pricing. Yes, eggs are sold at triple the price, and salmon or blueberries, which are not included in the diet of the military, are sold at prices that are many times lower than market prices.
• Detectives are currently checking a huge array of documents. NABU formulated and submitted recommendations to the Ministry of Defense to correct the situation.