BAI announces audit report on ROKN force improvement programs to reveal substantial losses across numerous programs

BAI announced the results of an audit on ROKN force improvement programs conducted from February to April, revealing substantial losses across numerous programs. The acquisition for Variable Depth Sonar (VDS) and minesweeping equipment that were to be equipped on the MSH failed tests on combat compatibility, and among the original contract that totals USD 125.2 million, DAPA had already paid out USD 72.5 million. However, because DAPA failed to secure proper rights, USD 55.7 million may not be recovered.

One of the firms that were contracted for the MSH equipment was found to have submitted falsified documents on their capability to perform the contract. The firm actually purchased the equipment to supply to ROKN, and the original manufacturer nation and date is unknown for several parts. In addition, DAPA provided payments of the entire amount set as the budget for the equipment disregarding the actual price, eventually paying USD 10.4 million more than the quoted amount of USD 15 million.

The audit report also pointed out numerous cases of test result documents not being submitted on time and tests that were not compliant to proper standards, leading to equipment that did not meet combat readiness standards. In addition, in several incidents, suppliers provided used equipment, but were not punished when discovered, as long as they would replace the second hand goods.

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