Defence department mismanaging logistics worth $2.6 bilion

The Defence department held $1.7 billion worth of items that weren't needed, an audit found. Photo: AAP

Defence failed to effectively manage millions of items which include ration packs and clothing for Australian troops, with a critical audit finding the department held $1.7 billion worth of items that weren’t needed.

An Auditor-General report released on Wednesday found Defence couldn’t demonstrate effective management of its general stores inventories.