Ruag files criminal complaints and seeks 51 million euros from ten people over tank deals

The NKF report

On Friday, 30 October 2026, the state-owned arms company Ruag published an investigation carried out by the Zurich law firm Niederer Kraft Frey (NKF). The firm reviewed more than six million documents in Switzerland and Germany and found serious breaches of duty as well as indications of possible criminal conduct. The probe was ordered by the Ruag board in August 2023, after irregularities surfaced in an attempted resale of 96 Leopard 1 tanks that the company had bought in Italy. Former defence minister Viola Amherd had already called for an external investigation at that time. According to the findings, the tank deal was not an isolated case, and the report covers the period since 2002.

Criminal complaints and claims

Ruag has filed several criminal complaints in Switzerland for suspected breach of trust in managing business affairs, forgery of documents and violation of manufacturing or trade secrets. All of these proceedings are still pending. The company is also pursuing civil claims of 51 million euros plus interest against ten people. The report puts the loss from reselling Dutch tank parts below market value at 46.9 million euros, while the sale of 22 tank gearboxes to firms linked to an employee caused a further 4 million euros in losses.

Resale of Dutch tank parts below market value46.9

Sale of 22 tank gearboxes to firms linked to an employee4

Resale of Dutch tank parts below market value

46.9 million euros

Sale of 22 tank gearboxes to firms linked to an employee

4 million euros

Data from the article text

Ruag has also dismissed staff in the course of the investigation, but it did not say how many people were let go. A former Ruag employee has been convicted at first instance in Germany of granting undue advantages, although the verdict is not yet final because prosecutors have appealed it. The Federal Finance Control (EFK) counts 26 cases of fraud against Ruag, and SRF reports that the alleged damage amounts to at least 60 million Swiss francs.

The federal response

Federal Councillor and Defence Minister Martin Pfister, who heads the VBS department, convened a press conference on Friday. He condemned the breaches in the strongest possible terms and told the media why the matter matters for the state.

“The incidents are unacceptable and damage public trust in the company, which plays an important role in strengthening Switzerland's defence capability.”

Pfister's working group will evaluate the report and examine the responsibilities of Ruag's governing bodies as well as the role of the owner, the federal government, which holds 100 percent of the company. The group will also check whether Ruag's own measures are sufficient and look closely at cooperation with the Swiss Army, its main customer. The VBS plans to present the results to the Federal Council in two to three months. On the VBS's request, the security policy committee of the Council of States has also decided to take up the total revision of the arms company law no earlier than early 2027.

Background and open questions

The EFK and the Business Management Committee of the Council of States had both criticised Ruag and the VBS, and the EFK had already flagged irregularities in 2024. In February 2025 the EFK made key points of the case public while the Niederer Kraft Frey investigation was still running. The new report describes a 'Business-First' culture in which controls were ignored and whistleblower tips were not sufficiently followed up. A former employee is said to have passed sensitive technical drawings to third parties, and suspicion centres on Leopard 2 components made by unapproved manufacturers, some of which reportedly were fitted.

Ruag's leadership says there is no security risk, and the warehouse is at a standstill while the matter is examined. Indications also point to a former South African subsidiary of Nitrochemie, in which Ruag held a stake, that may have enabled deals with countries that could not have been approved from Switzerland or Germany. Board chairman Jürg Rötheli, who has been in office for almost two years, put the company's aim this way.

“Comprehensively and independently working through Ruag's burdened past has been our overarching goal from the start.”

Ruag does not plan liability claims against former governing bodies, including the board, based on the current findings, but it has not ruled them out if the criminal and civil proceedings produce new evidence.