The German Federal Ministry of Finance wasted approximately €35 million of taxpayers’ money by purchasing 17,321 security smartphones for the customs administration. Due to missing IT approvals and serious functional defects, the devices were practically unusable. The Federal Court of Auditors exposed the issue, while the customs administration received virtually no compensation. This puts a costly government procurement project in the spotlight, one that failed both technically and organizationally. (pcwelt: 15.12.,25)
Taxpayer Money Wasted Due to Misplanning at the Ministry of Finance
Between October 2021 and December 2022, the Ministry of Finance procured thousands of secure smartphones, even though key requirements were not met. The devices were supposed to enable encrypted communication according to the specifications of the Federal Office for Information Security (BSI), up to the security classification “Classified – For Official Use Only.” However, the measure failed to achieve precisely this goal.
The Federal Court of Auditors found that the IT infrastructure of the Federal Information Technology Center lacked the necessary authorization. Its report states verbatim: “The smartphones authorized for use with classified information were integrated into an IT infrastructure that did not have VS-NfD (classified information – for official use only) clearance until June 2025.” As a result, the customs administration was not permitted to use the devices as intended, even though they had already been fully delivered. This form of taxpayer money waste could have been avoided with realistic planning.
Security Smartphones Without Practical Use
In addition to the formal problems, significant technical limitations arose in everyday use. The security smartphones offered hardly any functions required for daily work. Calendars, phone directories, and official emails were unavailable, and image transmission also failed.
Many customs employees therefore consciously chose not to use the new devices. The Federal Court of Auditors notes: “Many customs employees therefore refrained from using the new devices.” Instead of modern company cell phones, daily work routines remained unchanged, and basic mobile phones replaced the expensive technology. This reinforced the impression of a massive waste of resources.
Federal Court of Auditors criticizes high costs
The financial dimension significantly amplified the criticism, as each individual device cost more than €2,000. This sum included accessories and licenses, even though the actual benefit was lacking. The Court of Auditors therefore speaks of a clear misallocation of public funds.
Another technical flaw, which only became apparent during operation, further contributed to this. The security smartphones exhibited unusually high power consumption, which drastically reduced battery life. This posed a critical problem, especially for the customs administration’s mobile operations, as reliable accessibility is essential. This aspect also contributed to the waste of taxpayers’ money.
Replacement Instead of Sustainable Procurement
In 2024, the Federal Ministry of Finance finally took action, but only after significant damage had been done. The Federal Court of Auditors reports: “The majority of the secure but impractical smartphones were already replaced in 2024.” This confirmed that the initial procurement had not yielded any sustainable benefits.
The Court of Auditors formulates its assessment unequivocally. “The Federal Ministry of Finance therefore misinvested 35 million euros in secure smartphones,” it states verbatim. This statement underscores once again that the waste of taxpayers’ money is not only a matter of cost, but also of a lack of needs assessment.
Defense of the Federal Ministry of Finance
The Ministry of Finance refers to the prevailing conditions at the time and emphasizes compliance with security requirements. “At the time, only the procured smartphone solution met the requirements of the Federal Office for Information Security (BSI),” the ministry explains. The high energy consumption and short battery life were initially unknown and only became apparent during operation.
However, this explanation is only partially convincing, as the practical benefits remained minimal. For the customs administration, little changed, while the damage to the federal budget remained. The case is therefore considered an example of inefficient government procurement and a cautionary tale for future IT projects.