I dunno, that's the intended interpretation from the headline, but the article doesn't really substantiate it. The way you'd see "fraud" in a never-used item like an ejection seat is that it just wouldn't have its components. The expensive stuff would be missing, which to my eyes would be the explosives/rockets, absolutely not the electronics.
What they found was that the electronics looked "shoddy", which isn't (again, to my eyes) the same as "fraud"[1]. More like "we can't get the original parts anymore for this order, just use this off-the-shelf transistor instead", or "crap, we stuffed the wrong parts, pull them out and rework them by hand".
[1] In the way you mean it. Obviously if it's not the specified part then it's not delivering the item ordered. But not really "3rd world tier corruption".