Strengthening procurement security for the military: the Ministry of Defence begins cooperation with YouControl
The Ministry of Defence of Ukraine will use the YouControl analytics system for the initial screening of potential suppliers. This will help automate data searches, manage risks more effectively and make defence procurement more transparent.
The memorandum of cooperation was signed by Deputy Minister of Defence of Ukraine Mstyslav Banik and Danylo Hloba, Deputy Legal Director at YouControl.
Any risk that goes unnoticed can turn into delayed deliveries, or into poor-quality weapons and supplies for our soldiers. That is why screening potential suppliers has to be as fast and effective as possible. Access to the YouControl analytics system will let us spot red flags sooner and understand what deserves attention and what needs closer scrutiny. This is how defence procurement for the Ukrainian military keeps becoming more transparent and more effective.
Identifying risks early makes it possible to minimise potential threats to the quality of defence products and to keep supplies for the Armed Forces of Ukraine stable and uninterrupted.
How the Ministry of Defence will use the YouControl analytics system
A supplier intending to enter into a state contract submits a defined set of company data in a prescribed form. The registrar, that is, a representative of the Ministry of Defence, then has to verify that this data is accurate and check it for risks.
With access to the YouControl analytics system, this initial screening can be done in one place, in an electronic account, checking the data against every source required, rather than hunting for it by hand across dozens of separate state registers.
That saves a considerable amount of time on finding and verifying data.
Every risk identified at the supplier screening stage is time and resources potentially saved, and a threat to uninterrupted supply for the armed forces averted.
Danylo Hloba said he was confident that modern analytical tools and thorough counterparty screening can make defence procurement more effective and more secure.
What supplier data the Ministry of Defence will check
Using YouControl, the Ministry of Defence will check the following information about potential suppliers:
- inclusion in sanctions lists;
- beneficial owners;
- corporate ties to Russia (and, in future, for non-residents as well);
- debt obligations;
- criminal cases, including corruption-related ones;
- security risks.
The Ministry of Defence will also consult YouControl as it builds up its own capabilities for creating the relevant databases, integrating registers and similar work.
Trust Index: rapid initial analysis of counterparties
One of the key areas of cooperation will be the introduction of Trust Index, a tool for the rapid initial analysis of counterparties. It allows a preliminary risk profile of a counterparty to be drawn up quickly, identifies potential grounds for caution and supports more effective preparation for fuller due diligence.
Rapid analysis does not replace a full check on a counterparty. It is the first stage of that check, helping to organise information from open sources and make the assessment process more efficient.
It is worth noting that the data obtained through YouControl will be advisory only and will not serve as the basis for legal decisions. If the system flags particular risks, the registrar has to verify them directly in the relevant register and only then take a decision.
YouControl will train Ministry of Defence specialists
YouControl will also run dedicated training for Ministry of Defence specialists on using the system:
- searching for and verifying information about counterparties;
- analysing sets of open data;
- identifying potential risks;
- using modern analytical tools.
The Ministry of Defence expects that cooperation with YouControl will make the screening of potential suppliers more effective and speed up the detection of possible risks.