Swiss weapons maker RUAG accused of overbilling government

Ruag reportedly used the overcharged money to subsidise the unprofitable civil aircraft sector (© Keystone) © KEYSTONE / ALEXANDRA WEY

Swiss arms manufacture RUAG has overcharged Switzerland's defence ministry tens of millions of francs over the years, according to the Sunday editions of the Ostschweiz am Sonntag and the Zentralschweiz am Sonntag newspapers.

This content was published on December 16, 2018 - 11:47

The profit margin in the units dealing with the maintenance, repair and combat value enhancement of jets and army helicopters is said to have been in the range of 30 to 35%. This is much more than the maximum of 8 to 10% allowed by the federal government. 

Such profit margins mean that RUAG would have overcharged the military by approximately CHF40 million ($41 million) annually. According to an internal source, the practice dates back at least ten years, representing an overbilling of CHF400 million.

According to an investigation by the Office of the Attorney GeneralExternal link, RUAG used that money to subsidise other sectors of activity, mainly the unprofitable civil aircraft sector. 

The armaments company rejects the accusations.

RUAG is a technology group established from the defence companies owned by the Swiss government and has been a private stock corporation since 1999. However, the federal government is still its sole shareholder. The holding company is based in Bern.

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In compliance with the JTI standards

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