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Defense conflict almost exhausted: State Audit Service and business agree on cooperation - Holobutskyi

The conflict between the Cabinet of Ministers and arms manufacturers over the laying of profits in the price of products, which lasted several months, is nearing completion. Expert Oleksii Holobutskyi stated this, noting that the government must find ways to solve this situation.

"And while the government is looking for a competent legal solution (whether to count the profits of defense industry enterprises as losses to the state between March 2022 and July 2023), the parties have moved to dialogue. Major employers signed a memorandum of cooperation with the State Audit Service. And this is not a formal event, but a good signal that everyone is ready to work for victory - harmoniously and within the law. This is a signal of interaction and constructive," said Holobutskyi.

In his opinion, the government should take responsibility and prove itself in this situation more actively, because it was it that caused the conflict with the manufacturers of weapons. In particular, according to recent publications in the media, the initiator of the "crisis" resolution was generally Ukroboronprom.

However, despite the criticism, the State Audit Service was the first to demonstrate that it was ready to look for a way out of the regulatory collapse together with business.

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"Business and the state can be partners. Moreover, there were obviously shortcomings in contracts signed between the Ministry of Defense and defense industry enterprises. Yes, it is important for the country that today everyone works for defense, and not profit from the war," Holobutskyi explains the positive changes.

According to the expert, recent events indicate that the State Audit Service, as an institution that controls how honestly and transparently budget funds are spent, works effectively and is not silent if it sees violations. And for 9 months of 2023, thanks to its checks, UAH 4 billion was already returned to the budget.

Holobutskyi recalled that the conflict between the Cabinet of Ministers and manufacturers concerned billions of hryvnia. State auditors stood in the position of the law that this was a profit that should not be included in the price of the goods. And manufacturers - wanted to receive accrued funds.

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