Defense Ministry faces scrutiny over internal audit dissolution in Denmark

The Defense Ministry faces the prospect of significantly increasing its expenditures on equipment and personnel, while the government plans to dissolve the ministry’s internal audit body, known as FIR. This decision comes as part of a broader initiative to reduce the workforce by 1,000 positions across the state during a period when Europe is enhancing its defense capabilities.

Previously, the internal audit unit reported directly to the permanent secretary, but the new entity will instead report to the leadership of the Defense Ministry’s Material and Procurement Agency. As a result, all FIR staff will be reassigned to available positions within the agency, including roles in a newly established compliance unit.

Additionally, the ministry will set up a new office for oversight, accounting, and auditing within the department. This move has raised concerns among experts; Peter Skærbæk, a professor specializing in management and public sector auditing, describes it as a clear weakening of oversight during a time when the military is making unprecedented investments.

He emphasizes that accelerating investments while eliminating control measures is risky and may invite future scrutiny. Rolf Elm-Larsen, a noted author and former chief at the National Audit Office with extensive experience in public sector auditing, highlights the urgent need for diligence given the substantial procurement challenges ahead. He argues that the Defense Minister can only effectively inform the Parliament and the defense committee if a robust control system is in place.

There have been recurring criticisms from state auditors regarding the ministry’s performance, citing delayed acquisitions and failure to meet agreements, alongside notable weaknesses in its accounting practices. No comment has been received from the Defense Minister prior to the article’s deadline.