Lithuania’s arms procurement system failing to meet military needs – audit

Lithuania’s arms procurement system is failing to meet the growing needs of its armed forces, according to a recent audit conducted by the National Audit Office. The findings reveal a sharp increase in failed procurements, with the proportion jumping from 24% in 2023 to 59% in 2025. This has led to delays in fulfilling military requirements, despite the country’s rapid rise in defence spending. The audit highlighted both internal and external challenges contributing to these procurement bottlenecks. Internally, issues such as funding limitations, shifting priorities, outdated planning, slow decision-making, a shortage of qualified personnel, inadequate oversight, and fragmented management of major projects have hindered progress. Externally, factors like heightened global demand for weapons, constrained manufacturing capacities, and extended production timelines have further delayed deliveries. Auditor General Irena Segalovičienė emphasized the urgency of addressing these problems. She stated that time has become as crucial as funding in the defence sector. The doubling of failed procurements and prolonged coordination periods have stalled the expansion of the armed forces. She called for a comprehensive review of the legal framework and the elimination of internal obstacles that impede timely decision-making. Coordination within the procurement process has been particularly problematic. In 42% of analyzed cases, internal coordination with ministries and advisory bodies took between 30 and 374 days. Despite guidelines suggesting that international procurements should not take longer than 180 to 240 days, this process often exceeded those limits. From 2023 to 2025, the Defence Materiel Agency signed 62 contracts for weapons and military equipment totaling nearly €3.4 billion. These contracts represented 48% of all such agreements and 40% of their combined value. The agency used exceptions permitted under the Law on Public Procurement in the Fields of Defence and Security, which were applied lawfully. Although no major legal violations affecting standard public procurements were uncovered, the audit identified significant control weaknesses in 38% of cases. Eight out of 21 procurements showed either high or medium-level discrepancies. The report also noted that while efforts are underway to build a new military division, 13 of 16 capability areas linked to weapon procurement remain based on outdated plans. A lack of performance metrics, alongside failures to track current capabilities or establish realistic timelines, has compounded the issue. The National Audit Office urged stronger monitoring and improved project management in arms procurement. Some projects lacked detailed implementation plans, and decisions were made without considering the full cost implications, including ammunition, infrastructure, and lifecycle maintenance. For instance, the value of the Leopard 2 A8 tank project rose by 33% once all signed and planned contracts were included. This underscores how failing to assess all associated costs complicates accurate budgeting, risk management, and successful execution. The auditor has recommended several measures to the Ministry of Defence, the Defence Materiel Agency, and the Lithuanian Armed Forces. Key objectives include ensuring that no more than 730 calendar days pass between the approval of a military requirement and its fulfillment. Additional goals involve reducing decision coordination to no more than 35 working days and lowering the percentage of failed procurements to 20%. The Ministry of Defence has committed to enhancing the management of high-priority procurement projects, while the Lithuanian Armed Forces will revise their capability development plans and introduce clearer progress indicators. The ultimate aim is for 80% of capabilities to have defined benchmarks.