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GGD-83-53 1 (1983-03-15)

handle is hein.gao/gaobabmwk0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 GENERAL GOVERNMEN' DIVISION March 15, 1983 B-21 0744 The Honorable William H. Webster 120831 Director, Federal Bureau of Investigation Dear Judge Webster: Subject: Agreements Describing Liability in Undercover Operations Should Limit the Government's Liability (GAO/GGD-83-53) As you know, we recently completed a review of the costs associated with the FBI's undercover operations. During that review we examined several agreements between the FBI and cer- tain third parties which specified the conditions under which each would be liable for actions taken during an undercover operation. Usually these agreements stated that the Federal Government was liable only for the negligent acts of FBI employ- ees, which it normally would be liable for under existing law. However, three of the eight agreements we reviewed expanded the scope of the Government's liability beyond FBI negligence. Supreme Court and Comptroller General decisions require that such agreements limit the amount of the Government's liability to available appropriations. One of the three agreements did not contain such a limit. FBI officials told us that no costs have been incurred as a result of the agreement and none are anticipated. However, the potential liability under this or other similar agreements could generate unlimited costs to the Federal Government, if claims and lawsuits should occur. FBI policies and procedures also require that agreements which expand the scope of the Government's liability should limit the amount of that liability. Because we did not pursue access to information which FBI officials considered sensitive, we could not evaluate these procedures in operation. FBI offi- cials told us that they did not know why the one agreement omitted the liability limit. To ensure that this situation does (184397)

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