Official commentary on the leadership change at the Defence Procurement Agency

Today, the Ministry of Defence of Ukraine has dismissed Maryna Bezrukova from her position as Director of the Defence Procurement Agency (DPA). Arsen Zhumadilov has been appointed as Acting Director of the DPA.

This decision by the Ministry is based on the need to guarantee a steady and uninterrupted supply of weapons and ammunition to the frontline.

Among the key reasons for the leadership change at the Defence Procurement Agency are the failure to meet scheduled deliveries to the frontline, multiple concerns raised by the General Staff regarding poor procurement planning, delayed communication from the Agency, and unjustified rescheduling of deliveries. The numerous leaks of classified information are absolutely unacceptable and will be subject to distinct investigation by law enforcement agencies.

In light of the significant public interest in this matter, the Ministry of Defence is providing clarification on the legal aspects of the leadership change at the Agency.

On October 11, 2024, the Cabinet of Ministers of Ukraine endorsed the nominees for the Supervisory Board of the DPA, which comprises two state representatives and three independent members. In accordance with international corporate governance standards, the Supervisory Board was established to play a central role in overseeing the Agency's operations, ensuring transparency, and promoting the efficient management of public procurement in the defense sector.

The first three members of the Supervisory Board, sufficient for its quorum, were appointed on October 25, 2024, by the order of the Minister of Defence. However, to ensure the effective commencement of their duties, the members of the Supervisory Board needed to sign contracts with the Agency.

Following the official formation of the Supervisory Board by the Ministry of Defence, the Agency was unable to properly formalize legal relations with all members of the Board, resulting in delays in its operations. This is evidenced by the fact that the first constitutive meeting of the Supervisory Board was held on December 17, 2024, nearly two months following the approval of the Minister’s order.

On January 20, 2025, one of the independent members of the Supervisory Board announced resignation from the Board. The reason for this was the lack of proper communication from the Agency regarding the details of the contract.

This situation resulted in a decrease in the number of Supervisory Board members to four, which compromised the balance and effectiveness of the Board’s operations. Moreover, this composition of the Supervisory Board did not comply with the legal requirement that the majority of its members must be independent.

On January 20, 2025, the Ministry of Defence received a letter from the Chair of the Supervisory Board regarding a meeting scheduled for the same day, during which the extension of the contract with the Agency's Director was planned. In the evening of the same day, the Agency shared on Facebook that the decision had been made, although the Ministry had not yet given its approval.

On January 21, the Ministry of Defence received a further letter from the Chair of the Supervisory Board, providing the Ministry with only a few hours to reply. On the same day, the Ministry of Defence issued an official recommendation not to extend the Director's contract, offering a detailed explanation for its decision. Nevertheless, the Chair of the Supervisory Board did not communicate this information to all members of the Supervisory Board. In the evening of the same day, the Agency once again announced on Facebook the "unanimous" extension of the contract.

The Chair of the Supervisory Board did not ensure effective communication with its members and the Ministry of Defence. Certain members of the Board have stated that they did not receive the Ministry of Defence's stances despite those being sent through official channels. After the Ministry of Defence independently forwarded its position to all members of the Supervisory Board, the independent members revised their stance and voted against signing the supplementary agreement to prolong the Director’s contract.

The aforementioned actions of the Supervisory Board did not comply with the principles of transparency and consistency and involved several procedural violations, such as:

1. The Supervisory Board's decisions were announced on social media without formal notification to the Ministry. 
2. The supplementary agreement on the contract extension was signed without the prior approval of the Ministry of Defence, and the Ministry has not yet been provided with the text of the supplementary agreement. 
3. None of the meeting minutes of the Supervisory Board were officially submitted to the Ministry. 

It is important to note that when the Agency employed Maryna Bezrukova in January 2024, her contract was concluded by the Ministry of Defence, which acted in its capacity as the Agency’s authorized governing body. The law provides that a contract may be amended with the consent of both parties. Therefore, the extension of the contract with Maryna Bezrukova required the consent of the Ministry of Defence.

Nevertheless, on January 23, 2025, Yuriy Dzhygyr, Chair of the Supervisory Board, signed the supplementary agreement without obtaining the necessary approval from the Ministry of Defence. In doing so, he acted beyond the scope of his authority as outlined by law and the entity's Charter.

Considering the unsatisfactory performance of the Agency under the leadership of Maryna Bezrukova, along with the lack of cooperation and proper communication from the Chair of the Supervisory Board (a state representative), the Ministry of Defence of Ukraine decided to replace the state representatives on the Supervisory Board. The relevant information was promptly communicated to the persons in question and the Agency.

Thus, with only 2 out of 5 members remaining, the Supervisory Board became legally incapable of functioning. According to legislation, in the event of the Supervisory Board's incapacity, its powers are temporarily transferred to the Ministry of Defence of Ukraine. This grants the Ministry of Defence the authority to make decisions regarding the Agency's management, including appointing, dismissing, or removing the Director, as well as appointing an acting Director.

In wartime, effective defense procurement is a critical priority for the state. The Ministry of Defence and the leadership of the Defence Procurement Agency are presently focused on securing contracts and the uninterrupted delivery of weapons and ammunition to the frontline. Contracting continues daily in regular operational mode.

A permanent head of the DPA will be appointed shortly in accordance with applicable laws and corporate standards.

Both procurement agencies under the Ministry of Defence remain operational. The election and approval of the leadership team will be held in the near term, adhering to all relevant procedures.

Ukraine is a rule-of-law state where every citizen is entitled to contest decisions through legal proceedings. At the same time, all actions must remain fully compliant with the applicable law.