Luch Design Bureau requests government authorities to reconsider findings of State Audit Service

This information was shared by the Luch Design Bureau on their Facebook page.

The letters have been directed to key figures in the government, including Prime Minister Denys Shmyhal, Secretary of the National Security and Defense Council Oleksiy Danilov, Minister of Strategic Industry Kamyshin, and General Director of JSC "Ukrainian Defense Industry" (formerly known as Ukroboronprom), Herman Smetanin.

"Apart from dealing with the ongoing military aggression from the Russian Federation, the state-owned enterprise Luch Design Bureau is also grappling with internal factors that are impeding its ability to fulfill its mission of developing and producing Victory Weapons. Specifically, officials from the State Audit Service have taken a contentious stance regarding the inclusion of profits in pricing. This has created genuine threats to national security and defense. The conclusions drawn by the State Audit Service have led to surprise and frustration, causing disagreements and legal disputes among government authorities, even during times of martial law. The audit materials have been handed over to law enforcement agencies, resulting in the opening of criminal proceedings. It is asserted that the Russian Federation is primarily interested in artificially creating these threats. In pursuit of this agenda, the Luch Design Bureau has faced repeated challenges, including unfounded allegations and bureaucratic obstacles hindering its operations," the statement reads.

It's worth noting that in late June, the State Audit Service conducted an examination of contracts within the Ministry of Defense and identified violations amounting to 2.5 billion hryvnias. According to the service, Ukrainian manufacturers collaborating with the ministry should not factor in profits within their contracts with the government. The State Audit Service is demanding the return of these 2.5 billion hryvnias based on Government Resolution 335.

At the time, then-Minister of Defense Oleksiy Reznikov supported arms manufacturers and argued that the provision in the decree prohibiting profit conflicted with the Civil and Economic Codes and several other legislative acts.

More information about Ukrainian Luch Design Bureau

Luch Design Bureau is known for its role in developing and manufacturing anti-tank systems and missiles, including the Stuhna and Corsar missile complexes, the Vilkha multiple rocket launcher system, the well-known Neptun anti-ship complex, and the Bohdana self-propelled guns. In March 2022, this Kyiv-based enterprise faced an attempted attack by Russian aggressors, but they successfully evacuated equipment, spare parts, and rockets, preserving their capabilities.