MVP

Tag: defence ministry

  • Audit Report Reveals Defence Ministry Waste and Staffing Shortcomings

    The defence ministry is facing significant challenges with wasteful spending and staffing levels, according to a recent audit report. Released by the Audit Office, the report examines the years 2021 through 2024, highlighting ongoing organisational issues and structural inertia that have led to fiscal costs.

    Long-Standing Issues with Departmental Mergers

    One of the primary concerns identified in the report is related to the merger of various departments within the defence ministry and the army general staff. This merger was part of a strategic plan initiated in 2015, aimed at streamlining operations and reducing operational costs. By April 2019, the integration was physically realised with both entities being housed in the same premises.

    However, contrary to expectations, the report reveals that the number of military personnel assigned to defence ministry departments has actually increased rather than decreased, undermining the intended efficiency of the merger. This rise in personnel contradicts the rationale behind the consolidation, which was designed to optimise resources and enhance operational effectiveness.

    Widespread Leasing Practices

    Another critical issue raised in the report is the delay in relocating to government-owned premises, resulting in a reliance on leased properties. The continued practice of leasing not only incurs additional costs but also illustrates a failure to fully implement the merger’s objectives. By prolonging the leasing arrangements, the defence ministry is potentially wasting valuable financial resources that could be redirected towards other essential services.

    Inefficiencies in Data Management

    The report also highlights the lack of modernisation in administrative processes within the defence ministry. There has been a notable failure to implement computerised systems that could efficiently track vital functions, such as requisitioning and orders of expropriation. Instead, data is being entered manually into spreadsheets, such as Excel, which significantly increases the risk of human error.

    Attempts to establish a computerised system that could connect with a central governmental database have not materialised, leaving the defence ministry reliant on outdated methods. This inefficiency not only hampers productivity but also poses risks to the accuracy of critical data management.

    Irregular Financial Commitments

    In a related section, the Audit Office recounts an incident from early 2023 involving then-president Nicos Anastasiades. During a visit to Athens in February 2023, he pledged a €2.5 million grant to Greece’s air force as a gesture of solidarity following a tragic crash involving a Greek Air Force plane. This public commitment resulted in the disbursement of funds that were not accounted for in the defence ministry’s budget, raising concerns about the irregularity of such financial commitments.

    Misuse of Military Vehicles

    The audit also uncovered continued misuse of military vehicles for transporting both military and civilian personnel from their homes to work. This practice has resulted in excessive fuel consumption, straining the fuel quotas allocated to various military units. Such actions not only violate existing regulations but also highlight a disregard for resource management within the defence ministry.

    The auditor-general has stated that if the army general staff wishes to continue this practice, it must formally request a change in the law, underscoring the need for adherence to legal frameworks and proper governance.

    Missed Opportunities for EU Funding

    Furthermore, the report notes delays in the installation of photovoltaic systems at National Guard camps, which is critical for harnessing renewable energy. These delays pose a risk of losing out on potential EU funding, which could have provided financial support for sustainable energy initiatives. The inability to capitalise on such opportunities reflects a broader pattern of inefficiency and missed potential within the defence ministry.

    The Defence Ministry’s Core Mission

    Despite these challenges, the Audit Office’s report emphasises that the primary mission of the defence ministry remains unchanged: to protect the territorial integrity and independence of the Republic of Cyprus from any hostile threats. However, the ongoing organisational problems and fiscal waste identified in the audit undermine the ministry’s ability to fulfil this essential mandate effectively.

    In light of these findings, there is an urgent need for the defence ministry to address these issues comprehensively. Implementing effective management practices, enhancing operational efficiency, and adhering to legal standards are crucial steps necessary for restoring public confidence and ensuring the ministry can meet its obligations.

  • Cyprus Defence Ministry to Finalise National Plan for EU Safe Funding

    Cyprus Defence Ministry to Finalise National Plan for EU Safe Funding

    eu safe — eu safe — The Cyprus defence ministry will convene the defence industry council in the coming days to finalise the national action plan for the European Union’s Safe financial instrument. Defence capability development and armament director Panayiotis Hadjipavlis confirmed the meeting’s details during an interview with the Cyprus News Agency (CNA).

    Eu safe: Extraordinary Meeting Scheduled

    Chaired by Defence Minister Vassilis Palmas, the council will hold an extraordinary meeting to assess the ministry’s progress and establish final recommendations. These recommendations are crucial for the plan’s submission to the European Commission, which is due by November 30.

    Preparations Underway Since June

    Hadjipavlis explained that the ministry has been diligently preparing the Safe investment plan since June, with the intention of incorporating Cypriot defence and technology companies wherever feasible. The council comprises various stakeholders, including the presidents of the Cyprus Chamber of Commerce and Industry (Keve), the Employers and Industrialists Federation (Oev), and the Cyprus Defence Industry Association.

    Strengthening International Cooperation

    The defence ministry is actively participating in and co-organising events with foreign partners to enhance collaboration between Cypriot and international defence companies. Upcoming activities will involve the UK Ministry of Defence, as well as the embassies of France and Poland, focusing on joint research, technology development, and procurement strategies.

    Recent European Defence Agency Visit

    A team from the European Defence Agency (EDA) visited Cyprus on October 23-24 to explore new opportunities for cooperation with EU member states. During this visit, the EDA’s executive director met with Minister Palmas. Hadjipavlis remarked that relations between Cyprus and the agency are “excellent,” highlighting Cyprus as one of the agency’s staunchest supporters within the EU framework.

    Innovative Defence Research Initiatives

    As part of ongoing research and innovation efforts, a demonstration showcasing two completed projects under the Athena defence research programme is scheduled for November 10 at a National Guard base. These projects include an anti-drone system and a situational awareness platform designed to assist battlefield decision-making. Furthermore, two new programmes, Athena 2 and Athena Plus, are being prepared for launch in 2026 to expand upon these initiatives.

    Growing Defence Sector Landscape

    Currently, around 30 Cypriot companies are engaged in the defence sector, with a rising interest from firms specialising in dual-use technologies. Hadjipavlis noted that several Cypriot companies have already joined European Defence Fund consortia, positioning Cyprus seventh in Europe for successful funding applications.

    Upcoming Defence Events and Collaborations

    Several significant defence events are on the horizon, including a conference focused on technological advancements in the sector, taking place on November 11-12, under the auspices of the defence ministry. Additionally, the ministry will participate in a joint event organised by Keve and the French Embassy, in collaboration with the deputy ministry of research, aimed at promoting modern technologies and dual-use products.

    Future Conferences and Initiatives

    In early 2025, a bilateral conference will be co-organised with the UK Ministry of Defence and the Cyprus High Commission in London, aimed at fostering partnerships between defence industry associations from both nations. Another event with the Polish Embassy in Nicosia will concentrate on cybersecurity and cyber defence collaboration.

    Comprehensive Development Toolkit in Progress

    The ministry is also engaged in discussions with European experts to develop a comprehensive toolkit for the Cypriot defence industry. This includes formulating a national defence industry strategy, a detailed action plan, and necessary updates to legislation and the national defence industry registry.

    Significant EU Funding Secured

    Cyprus has successfully secured €500,000 in EU funding to advance this development package following a competitive selection process. Hadjipavlis pointed out that Cyprus stands out as one of the few EU countries to receive such support, contrasting with many others that rely on national budgets for similar initiatives.