Ukraine's Digital Transformation Minister calculates how much money was saved thanks to transparent drone procurement

Viktor Volokita — Monday, 14 October 2024, 18:55

The Ministry of Digital Transformation of Ukraine has built a rigorous procurement control system, overseen by the Economic Security Bureau of Ukraine and the National Anti-Corruption Bureau of Ukraine (NABU), from the first drone contracts within the Drone Army. This has saved UAH 4.5 billion (about US$106.6 million) of budget funds.

Source: Mykhailo Fedorov, Ukraine's Deputy Prime Minister and Minister of Digital Transformation

Quote from Mykhailo Fedorov: "We opened the drone market in 2023, cut out all bureaucracy, created the best conditions for the development and scaling of companies, and increased margins from 1% to 25%. This is the highest figure in the world. The state has also started purchasing drones through the closed Prozorro system to sign contracts at the best prices."

Mykhailo Fedorov says that the number of manufacturers and contracts is growing, with 150 companies already selling drones to the state. The procurement process is as transparent as possible.

The NABU and the Economic Security Bureau of Ukraine have access to a CRM system with all information about contracts and drones. Each UAV undergoes a mandatory price evaluation. There is a separate supply chain – a team of experts, NABU, and journalists monitor drone prices.

Quote from Mykhailo Fedorov: "If they find an inflated price, the price is immediately adjusted on the stage of signing contracts. Thanks to a clear control system, we have saved UAH 4.5 billion [about US$106.6 million] of budget funds."

Mykhailo Fedorov says it is important that drone manufacturers do not overstate the 25% margin, as NABU and the Economic Security Bureau of Ukraine detectives will record all cases.

Background: Mykhailo Fedorov, Ukraine's Deputy Prime Minister and Minister of Digital Transformation, believes that Ukrainian defence tech companies could receive US$50 million in investments by the end of the year.

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