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CED-79-96 1 (1979-05-30)

handle is hein.gao/gaobabmti0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. O.C. 20548 ak B-191654 MAY 30, 1979 The Honorable Jacob K. Javits The Honorable Daniel P. Moynihan United States Senate At your request, we reviewed the U.S. Virgin Islands Comptroller's audit of the procurement actions for three desalination plants costing $15 million to provide needed freshwater to the Islands. On May 8, 1979, the Virgin Islands Legislature passed a bill appropriating $15.1 mil- lion to the Virgin Islands Water and Power Authority for the plants. The bill became law on May 18, 1979. In his December 1978 report, the Virgin Islands Zl /7/ Comptroller concluded that the Water and Power Authority, an agency of the Virgin Islands government, had not fol- lowed sound procurement procedures in awarding the contract to Israel Desalination Engineering, Ltd. He therefore recom- mended that the contract not be funded and that the procure- ment be rebid, using all appropriate procurement procedures and the assistance of a qualified independent engineering firm. The recommendation, however, was advisory and there- xfore was not binding. A representative of Israel Desalina- 3J1'7tion Engineering, Ltd. alleged that the Virgin Islands -Lf Comptroller had violated his statutory audit authority and acted improperly in trying to upset a contract which had been lawfully concluded. Our review, which was limited to the Virgin Islands Comptroller's audit, disclosed that he --had not exceeded his statutory authority in conducting the audit; --performed the audit according to GAO auditing standards; and --supported his findings, conclusions, and advisory recommendation by an objective analysis of pertinent documents and records and by pertinent interviews with appropriate Virgin Islands and Department of 60 the Interior officials. 0CED-79-96 120227

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