On September 2nd (local time), according to Xinhua news agency, Estonian Defense Minister Hanno Pevkur announced his resignation, taking political responsibility after the State Audit Office discovered serious problems in the management and accounting of the country's defense industry.
Mr. Pevkur made the above decision in the evening news program "Aktuaalneカメラ" of Estonian Public Radio and Television (ERR), and said he wanted to take political responsibility for issues in the entire defense sector and would hand over the job when Prime Minister Kristen Michal decided the appropriate time.
Mr. Hanno Pevkur has been Minister of Defense of Estonia since 2022. He is a member of the Estonian Reform Party and has held many positions in the country's government.
Last week, the Estonian State Audit Office announced serious shortcomings in the accounting of Estonian Self-Defense Forces' inventory.
According to audit results, inadequacies in asset management and recording made it impossible for auditors to determine the accuracy of inventory balances worth about 1.2 billion euros, equivalent to about 1.4 billion USD.
In addition to accounting issues, auditors also discovered many shortcomings in contract management. Issues pointed out include the supervision of contract implementation, as well as the process of inspection and recording of received goods.
These findings relate to management activities in the defense sector, in the context that Estonia has continuously increased spending on defense in recent years.
According to the Estonian Ministry of Defense, the country's defense spending is set at 5.4% of GDP in 2026, a significant increase compared to about 3.3% of GDP in 2025.
The budget increase took place in the years Estonia promoted investment in defense. However, the latest audit shows that besides increasing resources, asset management, contracts and accounting in this field still have noteworthy issues.
