RUAG seeks fresh start after investigation into irregularities

RUAG MRO says it has finished investigating irregularities that stretch back to 2002, closing a major internal inquiry while acknowledging that some issues still need action. The Swiss defence contractor began its investigation in 2023 after identifying irregularities and unresolved matters. The affair came into public view in 2025, when the Swiss Federal Audit Office examined the company’s management and governance and reported serious problems with suspected fraud and stock management.

Jürg Rötheli, chair of RUAG MRO, said the work had been demanding but had prepared the company for the future. “We have ensured transparency, learnt the necessary lessons and laid foundations for a fresh start with peace of mind,” he said. Rötheli also acknowledged that some matters remain unresolved or require further steps. RUAG says it is planning those steps, with transparency as a focus.

The investigation identified several distinct areas of concern, including the suspected transfer of sensitive technical material and questions over business dealings. Law firm Niederer Kraft Frey found grounds for suspicion that a former employee unlawfully sent technical drawings to private email addresses and to third parties in Germany.

Investigators also found indications that a South African subsidiary of Nitrochemie, now in liquidation and partly owned by RUAG, may have been used to facilitate transactions that would not have been authorised from Switzerland or Germany. Another suspicion concerns the sale of a stake during the RUAG Group demerger. A former RUAG employee had acquired a minority stake in the buyer in a personal capacity without the required declaration.

Further suspicions concern possible falsification of original manufacturers’ certificates and the alleged granting of benefits that could constitute a criminal offence. These remain suspicions, not findings of guilt.

RUAG says it has expanded its compliance safeguards and taken legal action. The company established a Corporate Services unit as part of a reorganisation and strengthened its compliance framework. It also says it has made targeted improvements to export controls, oversight of intermediaries in international business and internal processes.

In Switzerland, RUAG has filed and supplemented criminal complaints alleging dishonest management, forgery of documents, breach of trade or business secrets and other offences. The company has also brought civil claims totalling about €51 million against 10 individuals. Both criminal and civil proceedings remain pending.

The legal steps run alongside the organisational changes. They place the allegations before the relevant processes while the company works through control improvements. Rötheli described the investigation as a deliberate investment in RUAG MRO’s future, saying: “The complexity of these projects made the work demanding. However, this investment was a deliberate choice to prepare for our future, and it has borne fruit.”