The Defence Forces did not receive the service they expected from the 27 armoured vehicles purchased in 2008.
This was the conclusion from the Comptroller and Auditor General, published today.
The report looked at the procurement and maintenance of the expensive military vehicles, with the objective to help Government optimise the process.
The report found that there was "a significant loss of value arising" from the purchase.
While the Department of Defence wrote down €2.77 million, the auditor believes that the actual loss in value to the State was "significantly greater".
The Department of Defence purchased 27 Light Tactical Armoured Vehicles (LTAV) for €19.6 million in 2008.
The accounting officer acknowledged that, at the time, the winning tender "represented excellent value".
Among the vehicles delivered were standard, cavalry, artillery and communications variant vehicles.
They were used on overseas missions, including in Lebanon and Syria, and for training purposes in Ireland.
While the vehicles were purchased with an expected lifetime of 20 years, the accounting officer noted, the fleet was withdrawn from active service in December 2023 – so six years earlier.
The regulator discovered a "serious fleet management control failure," citing unreliable mileage records, including gaps in data.
Some vehicles appear to have been used very little, with an average annual mileage per vehicle of less than 1,500 kilometres.
One LTAV was driven for just 600km a year.
"The Defence Forces should ensure that all vehicles now in service have reliable log books and routine, accurate recording of mileage undertaken," the report recommended.
Among other issues that impacted the overall value of the fleet to the Defence Forces was difficulty in procuring spare parts and several technical issues.
However, the maintenance expenditure accounted to only 13% of the total cost of ownership – well below the standard benchmark rates for military vehicle fleets of 65% of total cost.
Despite being retired early, the vehicles became effectively obsolete: the donation offer was declined by the Ukrainian Armed Forces.
The auditor noted that no decision has been made yet as to how to dispose of the vehicles.
The report concluded that the Government "has learned lessons from this procurement" and that its process "has evolved significantly" since 2008.
