Business · Companies · 6 hrs ago

Ruag inquiry finds serious misconduct and possible export-rule breaches

Ruag inquiry finds serious misconduct and possible export-rule breaches

A new inquiry found serious misconduct at Swiss arms firm Ruag, which is owned by the Swiss government.

A former manager is suspected of selling valuable tank spare parts below market value and leaving lower-quality parts with Ruag, causing major losses.

The inquiry also found evidence of possible crimes, including forged documents, and plans to bypass Swiss weapons-export rules; the planned export deals did not go ahead.

Ruag has filed criminal complaints and is seeking about 51 million euros from ten people.

The defence ministry blocked parts under suspicion and took steps to keep Switzerland’s Leopard 2 tanks operational.

A working group will examine responsibility inside Ruag and the government, with findings due to the Federal Council in two to three months.

The case could further weaken public trust as Switzerland debates arms-export rules and spending more on its military.

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What people are saying

Martin PfisterDefence minister
The incidents are not acceptable and damage the public's trust in the company
via 20 Minuten
I would expect him to transfer the money back to the federal government
via 20 Minuten