In August 2023, RUAG initiated an investigation with the support of NKF, after discrepancies and unresolved matters were identified as part of the work to address previous business activities. The goal was to perform a comprehensive and impartial investigation into the relevant events and their underlying causes, establish transparency regarding the past, expose any possible shortcomings and derive appropriate actions. With the conclusion of the investigation and the publication of the summary, RUAG has addressed these aspects comprehensively.
Findings on the various matters
The Swiss Federal Audit Office (SFAO) published four audit reports on RUAG in the period from February 2024 to January 2025. These already addressed material matters that emerged from the now concluded investigation. A focus was placed in particular on the irregularities relating to the purchase of 100 Leopard 1 tanks and to the assessment and management of spare parts in connection with a warehouse in Italy. The Netherlands matter concerns questionable assessments and sales of spare parts. In addition, the SFAO addressed the trade in non-inventoried Leopard 2 transmissions that were allegedly sold at prices significantly under the market value.
The further investigations of NKF yielded additional findings regarding irregularities and possible statutory violations. There is reason to suspect that a former employee illegally sent sensitive technical drawings to private e-mail addresses as well as to third-parties in Germany. There is also evidence to suggest that a now liquidated South African subsidiary of Nitrochemie, which RUAG holds a minority stake in, was intended to allow for business to be carried out that would not have been eligible for approval from within Switzerland or Germany. In addition, findings from the investigation indicate that as part of the demerger of the RUAG Group, a stake in a buying company was sold, in which a former RUAG employee personally and without appropriate disclosure held a sub-participation. Additional suspicions concern possible falsifications of original manufacturer confirmations as well as the suspected potentially criminal granting of undue advantages.
For all matters requiring further investigations or measures, RUAG ensures full cooperation with all involved entities, organizations and authorities.
RUAG responds consistently
Based on the comprehensive results of the investigation, RUAG’s Board of Directors has passed an extensive package of measures and driven its implementation. The measures were continuously supplemented based on further investigation findings. As part of a reorganization, the Corporate Services organizational unit was formed and compliance was strengthened. Of particular note are targeted improvements in export control, oversight of agent relationships in international business and internal processes.
In addition to these structural improvements, RUAG has also taken legal action. In Switzerland, criminal complaints were filed on suspicion of criminal mismanagement, falsification of documents, industrial or trade secret violation as well as other offenses and supplemented multiple times. Furthermore, RUAG has filed civil claims totaling approximately EUR 51 million against ten individuals. The criminal and civil proceedings are still pending.
“Addressing RUAG’s troubled past comprehensively and impartially was our overall goal from the start. We pursued this goal consistently and vigorously. The professional forensic investigation over an investigation period going back to 2002 has helped us establish key findings regarding matters that are still ongoing. The complexity of these matters made dealing with them demanding. But these efforts were a conscious investment into our future and were worth it. We created transparency, took appropriate action and laid the foundation for an unencumbered fresh start. We are aware that various related matters have not been addressed fully or require additional measures. RUAG will continue to drive the next required steps in a transparent and cooperative manner and provide reports on the matter,” says Jürg Rötheli, Chairman of the Board of Directors of RUAG MRO Holding Ltd.
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For more information on RUAG, contact Silvan Gruber, Director Corporate Communication & External Affairs, silvan.gruber@ruag.ch / +41 78 914 07 00.