Arms company in crisis: chaos at Ruag

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Would have, would have, tank chain: Nicolas Perrin (64), the outgoing chairman of Ruag MRO, is probably annoyed these days. One thing is certain: if he had not fired Ruag CEO Brigitte Beck (57) in August, the federal arms company would probably not have been under constant criticism for months.

In the spring of 2023, Brigitte Beck made several mistakes. First, she debunked an interview she gave to CH Media and threatened the editors. She then contradicted the Federal Council at public events and called on NATO states not to comply with the Swiss War Materials Act.

But instead of responding to his CEO’s blunders, Perrin did nothing for weeks. Only after some time did he engage a law firm to investigate Beck’s performance. The internal reporting is available to Blick. It concludes that the Ruag boss “did not know to any significant extent the legal basis for her activities in the War Material Act” – otherwise she would not have asked Germany and Spain to pass on Swiss war material. The lawyers call it ‘accepting a violation of the law’. Moreover, Ruag’s crisis management was ‘inadequate’, especially that of CEO Beck.

One scandal after another followed

When Perrin finally fired Beck in August, it was not the liberation he had hoped for. The media began investigating the Ruag area and came across one scandal after another. For example, they found a suspected corrupt Valais manager who allegedly lined his own pockets during his previous work for Ruag.

What was advantageous to VR president Perrin for a long time is now attributed to him: he is the brother-in-law of Brigitte Hauser-Süess (69), the personal assistant and companion of VBS boss Viola Amherd (61). Perrin became a big risk for the women’s duo and he had to leave. Just a few weeks ago, he assured Blick that he wanted to run for president of Ruag again.

As Blick has now learned, Heinz Liechti (69) is also leaving the board of directors – the former VBS employee was previously vice president of Ruag. The defense company refuses to comment on Liechti’s impending departure.

Otherwise the Ruag will not calm down. Research shows: The chaos there is greater than previously known.

 Mortar: According to an internal report by EY auditors, there are problems with a Ruag mine thrower. “In the case of the Swiss mortar, it turned out that a wire near the closing head had become loose due to use,” they write. “If these wires also come loose on the Omani product, this could become a warranty case for Ruag. There is still uncertainty as to whether the closing heads of the delivered mortars need to be replaced.” An insider told Blick: “If you had to replace the mortars it would be very expensive.” Ruag would not comment on the matter, saying: “The document you quote from is outdated and no longer current.”

 RIO: Ruag supports the Ruag Innovation Organization (RIO), which costs R13 million annually. Officially, “the threads for innovative ideas and products come together” in this unit. It is intended to help the company ‘acquire new customers, develop alternative business models and establish itself in other markets’, but is seen as a cash grab within Ruag. The insider criticizes: “RIO has no clear focus and no positioning in the military’s innovation ecosystem.” RIO is too large and functions as a task force involving all levels of management. According to reports, the unit will be managed directly by the outgoing vice-chairman of the board, Heinz Liechti.

 Crisis in the Board of Directors: The members of Ruag’s board of directors do not seem to be in harmony. Although board member Elisabeth Bourqui (48) has been in office for a long time, Ruag only knows about her: “Updates to follow.” Officially, the defense company is proud that three of the six board members are women, but their expertise in the defense industry does not always seem to be available. “The board of directors interferes far too much with operational matters and practically paralyzes management,” criticizes the Ruag insider. Ruag declined to comment on these allegations.

25 Leopard 1 tanks rust away in northern Italy

What’s next? VBS boss Viola Amherd must look for a vice president in addition to a new Ruag president. Former board member Monica Duca Widmer (64) is interviewed for the top position. What speaks for her is that she is a woman. The argument against her appointment is that she belongs to the Ruag branch and has not yet been able to clean up there.

Jakob Baumann (65) is mentioned by external observers: The former division officer was head of planning in the army, became head of armaments and head of the Armasuisse department at the DDPS. Baumann had previously served on Ruag’s board of directors; When he was appointed chief of armaments, he resigned from this committee.

An embarrassing problem that Ruag will have to deal with as soon as possible is the 25 Leopard 1 tanks that are rusting in northern Italy (Blick reports). German company GLS bought the classic cars from Ruag – but the Swiss company claims to have withdrawn the contract. A court in Italy ruled in favor of the GLS. Ruag has filed an appeal.

Source:Blick