Defense Procurement Agency to build transparent relations with all stakeholders - CEO

Agency CEO Arsen Zhumadilov spoke of this in an interview with Ukrainian Radio, reports Ukrinform.

"All procurement processes are similar if they are clearly run from A to Z. Whether it is a purchase worth a million, one hundred million, or ten billion. Market analysis must be conducted, the requirements for suppliers and product must be worked out, and there must be a clear and transparent tender, understandable to all participants, in the Prozorro (e-procurement – ed.) system. Adequate relations must be built in the sense of contract execution, so that the supplier understands exactly what is expected from them. The amount is not so important as the breadth and specificity of the procurement nomenclature," Zhumadilov emphasized.

According to the CEO, everything included in the tender paperwork regarding counterparties will be seen in the Prozorro system.

"We will definitely build clear and transparent relations with all stakeholders, including civil society institutions and media, so that they understand what we are doing, and why. They will see it in Prozorro. After all, simply seeing information or understanding is a big difference. And we will make sure every time that people understand our actions exactly," he said.

According to the the top manager, the team has started recruiting processes and is "very open" toward applicants. "These are the people for whom the values of service, openness, patriotism, and everything we invest in the concept of zero tolerance for corruption are common. We will build a team in which every member shares these principles and approaches. At some stage, the organization should move on without my participation, that is, an institution should be formed that established certain rules of the game that are clear to everyone and followed regardless of those at its helm," he said.

According to Zhumadilov, the Defense Procurement Agency will have a Supervisory Board, which will be formed from among independent members and representatives of the state. It should perform three main functions. First, approve the company's development strategy and financial plan, as well as confirm that the proposed vision is of high quality and can be implemented.

The second function, according to Zhumadilov, is to control strategy implementation. If it is not followed, they may raise questions about the top manager’s dismissal.

The third function is that of a strategic consultant. That is, the Supervisory Board should include high-level specialists in their respective field, in order to attract the best vision and help management perform certain tasks, emphasized the head of the Defense Procurement Agency.

"It is the Supervisory Board that ensures stability. Because we see ministers reshuffle on average once every two and a half years, respectively — for a certain period of time, the minister may be confused as to what exactly the company does, and may have vested interests that he will seek to pursue through this state enterprise. That is, there are risks that may materialize, and it is the Supervisory Board that will serve as the buffer that will prevent the impact of these risks on the organization's operations," the CEO is convinced.

As reported, the Cabinet of Ministers in May adopted a resolution entrusting the procurement of weapons and military equipment for the Armed Forces of Ukraine to the newly-formed Defense Procurement Agency.