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The Supervisory Board of the MoD Defence Procurement Agency has presented its 100-day performance report to international partners

A meeting between the Supervisory Board of the Defence Procurement Agency (DPA) and representatives of diplomatic missions was held at the Ministry of Defence of Ukraine. The event marked the first 100 days of activity of the renewed Supervisory Board, which resumed its work in April 2025.

The meeting was attended by representatives of the G7, partner countries, NATO, and the European Union. The Supervisory Board presented the first results of its work and outlined further plans.

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The Supervisory Board plays an important role in transforming the agency into an effective procurement organization that meets the needs of the Armed Forces of Ukraine. Its key responsibilities include approving the development strategy, adopting core policies, overseeing management performance, and establishing systems of transparency and accountability.

“The Supervisory Board resumed its full operations in a difficult context. High expectations from the public and international partners coincide with the need to build a system in a high-risk environment shaped by a difficult legacy. In 100 days, we have established the institutional foundation for launching full-fledged corporate governance within the agency,” said Stanislav Haider, Chair of the DPA Supervisory Board.

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Internal Control System

The Supervisory Board has launched the establishment of a full-fledged internal control system aligned with the ‘three lines’ model and incorporating an independent audit:

  • An independent auditor from one of the top six international firms has been selected, and the audit has commenced;
  • A decision on conducting a functional audit in cooperation with NATO auditors was prepared;
  • An internal audit department has been established, its regulations approved, and a public selection process for its head launched;
  • A Deputy Director for Risk Management and Compliance has been appointed;
  • The terms of reference are being developed for post-contract monitoring based on risk criteria;
  • The core policies are currently under development, encompassing anti-corruption, code of ethics, related-party policy, and risk management.

“The goal is to implement feedback mechanisms among all three lines by incorporating audit findings into management decisions, internal policies, and performance improvements — in other words, by implementing quality criteria,” explained Łukasz Stolarski, member of the Supervisory Board.

Management Assessment and Operational Effectiveness

The Supervisory Board reviewed the DPA’s objectives for 2025 and ratified those for 2026, endorsing over 40 key performance indicators (KPIs) spanning financial, operational, and human resources domains, including:

  • contract execution;
  • accounts receivable management;
  • personnel development;
  • budget management, and more.

The contract with the Director of the DPA has been updated, alongside the introduction of a system to assess their performance. 

“We are building a systematic approach to management evaluation. More than a dozen KPIs have already been defined, and this is just the beginning. The objectives are set for both 2025 and 2026,” emphasized Kateryna Kuznetsova, member of the Supervisory Board.

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Development Strategy and Planning 

One of the main tasks of the renewed Supervisory Board is to formulate a strategy. According to Lieutenant General Ivan Havryliuk, member of the Supervisory Board, work has already begun to define priorities for the development of a new DPA Strategy through 2030. The initial key priorities have been identified as corporatization and legislative reform, the transformation of the DPA into a Unified Procurement Agency, strengthening international cooperation, human resources development, institutional capacity enhancement, and more.

In addition, the Supervisory Board has already approved the investment and financial plans for 2025. A Corporate Governance Policy is being developed, and the internal control system will be updated to align with international standards.

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“International partners expect not only reforms from Ukraine but also tangible progress in implementing Euro-Atlantic standards in the defense sector. The task of the Supervisory Board is to ensure the continuity of reforms and build trust in the defense procurement system, both within Ukrainian society and among our international allies,” said Ivan Havryliuk.

Institutional Capacity and Transparency

  • 17 meetings were held, 107 decisions were adopted;
  • Stanislav Haider was elected Chair of the Board;
  • Two committees have been established: the Committee on Appointments & Remuneration and the Audit Committee;
  • A legal advisor and corporate secretary were appointed, and a unified document database along with a decision monitoring system were established;
  • Development is underway for policies regarding conflict of interest, public communication, and the Board’s development plan.

The DPA website now hosts a public webpage for the Supervisory Board with open data available. The scope of information subject to quarterly updates has been expanded to encompass composition, structure, documents, Board reports, and key statistics.

To recap, the Supervisory Board previously held similar meetings with the Public Anti-Corruption Council under the Ministry of Defence, as well as with MoD leadership.

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