A major scandal has rocked Swiss defense company Ruag, revealing fraudulent activities that cost taxpayers millions.

Investigations by the Swiss Federal Audit Office (EFK) uncovered systematic misconduct in the international trade of tank parts, allegedly orchestrated by a former senior executive.

The scheme involved undervaluing materials and reselling them at inflated prices, with suspicions of forged invoices and corruption.

The executive, now employed by a German partner company, faces legal action in both Switzerland and Germany.

Ruag has pledged full transparency and announced personnel changes to address the systemic failures.

The company also plans to compensate the Swiss Army for any losses incurred.

This case highlights deep-rooted organizational issues within Ruag, including poor oversight and frequent leadership changes.