Report on procurement of maintenance and repair services by the Ministry of Defence Estate Agency

06-12-2019

Report no. 8/2019

The purpose of the study is to assess whether the Ministry of Defence has ensured that procurement of maintenance and repair services is administered in a satisfactory manner. The report answers the following questions:

  • Has the Ministry of Defence ensured the availability of adequate guidelines on procurement of maintenance and repair services at the MDEA?
  • Has the Ministry of Defence ensured that the MDEA's procurement of maintenance and repair services takes place in accordance with the controls and documentation requirements prescribed in the executive order on the preparation of financial statements?

It is Rigsrevisionen's assessment that the Ministry of Defence's failure to ensure satisfactory administration of procurement of maintenance and repair services can be criticised, because segregation of duties has been inadequate and the documentation of procurement is either insufficient, misleading or non-existent. To this should be added that it is seriously questionable whether the documentation provided to Rigsrevisionen by the MDEA is complete and correct. Lastly, the MDEA has provided Rigsrevisionen with incorrect information on several occasions. The consequence of the practice at the MDEA, is a high risk of error and fraud in procurement of maintenance and repair services, which the Ministry of Defence subsequently will not be able to detect.

Rigsrevisionen initiated the study in May 2019.

Read the introduction and conclusion (PDF)