The financial audit sharply criticizes the federal arms company: that is how large Ruag’s tank cloud is

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At Ruag resignation after dismissal: Last August, CEO Brigitte Beck resigned after controversial statements about arms deliveries to Ukraine. Then the federal arms company caused redheads because it stuck to a tank deal with Germany’s Rheinmetall, even though the rejection by the Federal Council was foreseeable. 96 Leopard 1 tanks stored in Italy would land in Ukraine via Germany.

The plans raised so many questions that several investigations were launched. Result: Chairman of the Board of Directors Nicolas Perrin (65) has also submitted his resignation. In the future, Ruag must be able to “carry out its activities unburdened and with new forces”.

Report shows chaotic conditions

This dismissal is likely related to an investigative report from the Federal Audit Office (SFAO) published on Tuesday. This gives the arms company poor figures: the financial accountants have identified several shortcomings and their own rules were not complied with on several occasions. The image that emerges: With the chaos group Ruag, everyone can do what they want. This is consistent with information from accounting and business documents being unavailable.

It starts in 2016 with the purchase of a tank from a company subordinate to the Italian Ministry of Defense: Ruag did not comply with the authority and signature rules. The SFAO complains that there was no approval from the group management and the board of directors. Such inconsistencies run like a common thread through the company.

In addition: The original plan was to only purchase the tanks and replacement materials when a permanent buyer was available. It is not clear from the available documents why Ruag decided not to do so.

“Significant, negative financial consequences”

The group rented a warehouse in Villesse, northern Italy, where the “Leos” are still based. But: Although Ruag Switzerland is responsible, Ruag Germany signed a contract amendment in 2021, in which it more than tripled the monthly storage rental for eight years without prior notice. “Understandable from a business perspective,” says the EFK. Okay from management? No!

The Ministry of Defense (DDS) was not officially informed until much later – even after the Federal Council had already rejected the deal. This is all the more surprising because the outgoing Ruag board chairman Perrin is the brother-in-law of Brigitte Hauser-Süess (69), who is of course the closest advisor to Defense Minister Viola Amherd (61).

In 2022, Ruag wanted to sell the tanks to the German Rheinmetall AG, which wanted to forward them to Ukraine. But the Federal Council vetoed it. This “politically relevant transaction” was also not formally approved from above. Only later did it become known that not all 96 tanks belonged to Ruag. The company is still involved in a legal dispute with Global Logistics Support (GLS), which claims 25 tanks for itself.

There are obviously more than enough inconsistencies in their contract. And that is no longer surprising: once again the necessary approval from the Ruag leadership is lacking.

“Not shown due care”

How does Ruag react, apart from Perrin’s resignation? She promises to get better. The report shows “certain shortcomings”. Management and the board of directors would make every effort to correct “any weaknesses” and “remaining shortcomings” and “consistently continue the culture change”. Given the apparently chaotic circumstances, this is rather trivializing.

This is probably what the federal government is thinking too, which is more clear in its statement. The VBS and the financial administration believe that the shortcomings are serious. Binding regulations must be better respected: “The owners are annoyed that, according to the SFAO assessment, Ruag has not exercised due care in its business activities and has therefore incurred additional costs.” The federal government expects Ruag to immediately correct “apparent shortcomings in the organization, processes and business activities.” Further errors no longer seem to be accepted.

Source:Blick