Ruag fraud report widens scandal as Pfister vows scrutiny

A new investigation has revealed that fraud at state-owned arms company Ruag was more extensive than previously known, SRF reported. Defence Minister Martin Pfister said he was shocked by the “criminal energy” involved and promised a thorough review.

The case centres on a former Ruag employee who allegedly siphoned off money over several years, including in connection with tank deals. A summary of the investigation was published on Friday. The full report, which runs to more than 1,000 pages, is expected in the coming days.

Pfister said a working group would examine the federal government’s role, as the report focused on Ruag and did not investigate the government’s actions. The group excludes officials from the ownership authorities and people who may have been involved at the time. He said the findings would be reviewed critically and that measures would follow, even if they concerned the federal government.

The investigation is also examining the government’s response to a Ruag subsidiary in South Africa. The Defence Department knew in 2017 that the subsidiary intended to circumvent Swiss rules, but it took eight years to close it. Pfister said he had not discussed the matter with Guy Parmelin, who was responsible for the department at the time. He had informed the full Federal Council about the situation and planned measures.

Responding to critics who questioned whether the government deserved public trust in decisions under the War Materiel Act, Pfister said transparency and honesty were essential to restoring confidence. He said the conduct under investigation was criminal and punishable under both the current and proposed law, and that the State Secretariat for Economic Affairs must enforce export rules consistently.