– This check shows that the defense sector has weak control and weak follow-up, both of the value of the framework agreements and of the duration of the agreements, said Auditor General Karl Eirik Schjøtt-Pedersen at a press conference on Tuesday.
Together with his staff, he has gone through last year’s state accounts, and one of the findings has resulted in criticism of the defense sector.
– At the Norwegian Armed Forces, we saw, among other things, that orders were not linked to a framework agreement. Then they do not get a full overview of how much has been used of the agreement. This increases the risk that they will continue to trade on a deal even after the full value has been achieved. They had also placed orders for NOK 734 million on 101 framework agreements which had expired on time, says Auditor General Karl Eirik Schjøtt-Pedersen.
In violation of the regulations
The National Audit Office believes that the manner in which this has not been followed up by the Ministry of Defense is “critical”. This is the middle level of criticism the National Audit Office gives, where the strongest is “strongly reprehensible”.
The conclusion is that:
* There is weak follow-up and control of framework agreements.
* Direct purchases have been made in violation of the procurement regulations.
Schjøtt-Pedersen points out that over the next twelve years, the Norwegian Armed Forces will receive allocations of NOK 1,635 billion. Much will go to investments through framework agreements.
– That the defense sector has good control and follow-up of both the value and term of the framework agreements is important for the billions to be used in a good way, said Schjøtt-Pedersen at the press conference.
He believes it is about trust in public procurement.
Billion sum
In 2022 alone, the defense sector spent NOK 27 billion under the category “other operating costs”, which are mainly acquisitions.
The National Audit Office’s investigation covers the Armed Forces, Defense Materiel, the Defense Research Institute, Defense Building and the National Security Agency (NSM). In the period 2014–2022, they have entered into more than 3,000 framework agreements, the National Audit Office states.
– It is reprehensible that the Ministry of Defense has not had sufficient control over whether the businesses have established systems and routines that ensure that procurement of goods and services takes place in accordance with the procurement regulations, reads the official criticism.
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