Danish auditors fault Defense Ministry for failing to disclose soaring US F-35 costs

Danish auditors criticized the Defense Ministry of failing to keep an adequate overview of the costs associated with the purchase of 27 F-35 fighter jets, saying lawmakers were not properly informed about the true price of one of the country's largest defense procurements.

The criticism came in a Danish National Audit Office report on Monday which found that the total projected cost of the F-35 program rose 14 billion Danish kroner ($2.1 billion) from the ministry's original estimate.

According to the report, the ministry maintained its initial cost estimate for a decade despite indications that expenses would be significantly higher.

In February, after the office launched its investigation, the ministry revised the total projected cost of the 27 aircraft from 57.1 billion kroner to 71.2 billion kroner, or about 500 million kroner more annually.

"The Ministry of Defence's lack of an overview of the costs for the F-35 fighter jets can affect both how much the aircraft can fly and the many other major acquisitions that must be made," the State Auditors said in a statement.

"It is very unsatisfactory that the Danish Parliament has not been adequately informed," they added.

The auditors also criticized the ministry for informing parliament's Finance Committee last October that the total cost of the fighter jet acquisition would amount to 17.2 billion kroner, a figure they said was at least 2.3 billion kroner too low because it excluded relevant expenses.

The report further noted that the ministry did not include a contingency reserve in its overall spending estimate, despite such provisions being standard practice in major procurement projects. It also said the revised 71.2 billion kroner estimate still excludes around 1 billion kroner earmarked for the future replacement of two F-35 aircraft.

The National Audit Office recommended that the ministry strengthen cost monitoring for major acquisitions, including Denmark's planned purchase of an additional 16 F-35 fighter jets, and maintain continuously updated cost assessments that account for all expenditures.

The ministry said it agrees with the criticism and takes the findings "very seriously," according to Danish broadcaster TV 2.