A Polish army Leopard tank returns to the tactical assembly area to prepare for a Defender Europe multinational situational exercise at Drawsko Pomorskie, Poland, May 25, 2022. Defender Europe 22 is a series of U.S. Army Europe and Africa multinational training exercises taking place in Eastern Europe. The exercise demonstrates U.S. Army Europe and Africa’s ability to conduct large-scale ground combat operations across multiple theaters in support of NATO. (U.S. Army photo by Capt. Tobias Cukale)

Polish Leopard 2PL Upgrade Contractor Board Faces Mismanagement Charges

A Polish regional prosecutor’s office has charged members of Polish defense contractor Bumar-Labedy SA’s management board and supervisory board with criminal mismanagement over the company’s handling of the Leopard 2PL tank upgrade program. 

In a statement issued on Tuesday, the Katowice regional prosecutor’s office announced that it had charged seven members of the state-owned company’s management board and supervisory board for causing the company to fail to meet its contractual obligations for the Leopard 2PL upgrades.

According to prosecutors, the board members charged were responsible for Bumar signing a 2015 contract with the Polish government to upgrade 128 of the Polish Army’s Leopard 2A4 tanks, despite the company not having the equipment or ability to meet the terms of the contract. They are being charged for mismanagement under Article 296 § 1 of the Polish Penal Code, in connection with Article 296 § 3 of the Penal Code and Article 296 § 1a of the Penal Code.

A Polish Army Leopard 2 tank is the first to cross the newly completed bridge over the River Kwisa at the Żagan Świętoszów Training Area in Poland during a ceremony there May 24, 2022. The bridge project is one of many training range improvements the U.S. Army Corps of Engineers has delivered in Poland in partnership with the Polish Army, the U.S. Army’s 7th Army Training Command and others. These projects improve readiness and interoperability of U.S., host nation and allied forces. (U.S. Army photo by Alfredo Barraza).
A Polish Army Leopard 2PL tank is the first to cross the newly completed bridge over the River Kwisa at the Żagan Świętoszów Training Area in Poland during a ceremony there May 24, 2022. (U.S. Army photo by Alfredo Barraza).

The prosecutors estimate that the alleged mismanagement would cause damages to Bumar of at least 38.6 million Polish zloty (approximately $9.83 million), and brought about an imminent danger of at least 215.8 million zloty (around $54.9 million) in further damages.

According to the prosecutor’s office, those accused have been required to post bail, with some of their assets taken as collateral to compensate for the financial damages to the company. They face a maximum sentence of 10 years’ imprisonment if found guilty.

The Leopard 2PL upgrade package replaces the Leopard 2A4’s hydraulic turret drives and gun stabilizer drives with electric motor-driven systems for both. Additionally, new thermal sights are provided for the gunner and commander, while the 120mm main gun’s fire control system is upgraded for compatibility with newer ammunition types, including the DM11 programmable high explosive shell. The upgrade’s most noticeable external change is the addition of new modular turret armor designed by IBD Deisenroth.

A Leopard 2PL of the Polish Army’s 1st Armoured Brigade. (Wesola / Leszek Champerek MON, used under CC BY 3.0 License)

Leopard 2PL upgrade work has seen several delays due to various technical and supply chain issues. While the 2015 contract expected all of the tanks to be upgraded and delivered to the Polish Army by the end of 2020, only 61 out of 128 tanks have been upgraded as of January this year. These delays have become a minor point of contention for further Polish-German defense cooperation, with skeptics seeking to blame Bumar’s German partner Rheinmetall for the program’s delays.