Eurosec OÜ, an Estonian defense company, expresses its profound disappointment following a recent ruling by the Lithuanian Court of Appeal in a case concerning serious violations in public procurement procedures involving falsified product data and stolen materials.
In 2024, Eurosec discovered that the Lithuanian Defense Resources Agency had awarded a procurement contract for military hydration equipment to a company—Milisec UAB—that used stolen images and misleading technical descriptions sourced from a competitor's (Source Tactical) website. These actions represent not only a breach of fair competition but also a grave risk to operational integrity and safety in the defense sector.
Despite initially recognizing the validity of Eurosec’s complaint and even declaring Eurosec's offer as the most economically advantageous, the contracting authority later reversed its decision. The awarded bidder was allowed to retroactively alter key aspects of its proposal—an act Eurosec contends is in clear violation of procurement laws which prohibit changes to submitted tenders.
“This ruling effectively legitimizes the submission of inaccurate or deceptive documentation in defense procurement,” said a spokesperson for Eurosec. “If changing a bid after submission is now acceptable, we are opening the door to a future where integrity, transparency, and technical merit take a backseat to opportunism and backdoor manoeuvring.”
Particularly troubling is the court’s acceptance of vague clarifications by Milisec that replaced previously claimed and Source trademarked technologies with unspecified alternatives—without full disclosure to other tender participants. Furthermore, essential technical documents were deemed “confidential,” denying Eurosec and other stakeholders the opportunity to properly assess the legality of the contract award.
The court’s decision suggests a disturbing leniency in enforcing public procurement laws—especially in a sector as vital as defense. By setting this precedent, the message to the international community is alarming: falsifying data and misappropriating intellectual property can go unpunished under the banner of "clarification."
“This is not just about losing, one contract or one company. This is about the trust and security of our entire defense procurement ecosystem,” the Eurosec spokesperson continued. “If EU member states start to tolerate these practices, we are eroding the very principles that distinguish democratic and lawful governance from the aggressive, disinformation-driven tactics of authoritarian regimes.”
Contact:
Eurosec OÜ
Email: info@eurosec.ee
Phone: +372 687 1196
Website: www.eurosec.eu