The abuses and misconduct identified in the SFAO reports are unacceptable to RUAG. The structural changes in recent years and the numerous personnel changes at the management level have complicated the development of today’s RUAG MRO after the unbundling. In addition, individuals with presumably criminal intent have harmed the company.
Criminal charges filed
The findings of the investigation show that it is highly likely that fraudulent business activities have occurred systematically within the RUAG organization. At the center of these activities is the international trade in spare parts. Moreover, the investigation shows that individuals who are also the subject of investigations by the German public prosecutor’s office are at the center of many of these irregular transactions. RUAG has also reported the matters described in the reports to the law enforcement authorities.
A particularly serious case concerns a spare parts transaction with the Dutch government. RUAG has informed the Dutch Ministry of Defense about this and seeks to work with them to address the matter.
RUAG is initiating personnel changes
In order to reorganize and realign RUAG, the new chairman of the Board of Directors has initiated personnel changes. The aim is to develop RUAG unencumbered and to sustainably advance the cultural change that has been initiated. RUAG will communicate further details separately in the near future.
Compliance processes are being externally audited
The SFAO reports show that compliance with rules of conduct and adherence to regulations are not consistently implemented at RUAG. In addition, missing or insufficient controls have compromised the effectiveness of the compliance management system. RUAG is doing everything in its power to quickly improve the situation. A cultural transformation has been initiated through various initiatives and will lead to improved transparency and a better error management culture. A realignment of the RUAG organization, planned for the second quarter of 2025, will also achieve further structural improvements. RUAG is also currently analyzing and improving its compliance processes and will have them audited by external experts. This will ensure that the future processes meet the highest standards.
Investigation together with the Swiss Armed Forces
The SFAO reports indicate that at RUAG spare parts from the consignment stock owned by the Swiss Armed Forces may have been used without authorization for the company’s own business with third parties. Together with the LBA and armasuisse, RUAG will investigate the inventory discrepancies and thus ensure full transparency. If the Swiss Armed Forces have suffered any damage, RUAG will reimburse the Confederation in full for the unjustified transactions.
“It is unacceptable that serious organizational errors, wrong decisions and misjudgments have occurred within our company. I have taken on this role to work with CEO Ralf Müller, the Board of Directors and the Executive Board to rectify the situation comprehensively. I am convinced that we have now taken the right measures and will, step by step, restore RUAG to a company of which we can all be proud, especially our committed and motivated employees,” says Jürg Rötheli, new chairman of the Board of Directors of RUAG MRO Holding Ltd.
“As CEO, my primary goal is to ensure that our focus at RUAG is once again on our operational performance – and not on our loaded past. I am confident that we have already taken important steps in this regard and we will continue to prioritize and implement further measures. I recognize that the only way we can regain trust is by being as transparent as possible and we are committed to ensuring this is fully delivered,” says Ralf Müller, CEO of RUAG MRO Holding Ltd.