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B-159451 1 (1974-05-10)

handle is hein.gao/gaobaafqq0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 O'q~ INTERNATIONAL DIVISION LM095884 The Honorable Daniel Parker, Administrator Agency for International Development Dear Mr. Parker: GAO has reviewed U S nilitar construcj~ti i~pnt materia2_s, supplies, and, facilities channeled through the Agencyo fqo -Ix tneational Development Mission in Vietnam to tie.ieta Egneering and-Construct ion CG6nny(COJ a corporation owned by the Government of Vietnam (GVN). Our review covered the property, valued at approximately $43.7 million, provided to VECCO from December 1971 through June 1972. This report coex r placed in VECCO rental pools for use by construction contractors on various highway and bridge projects in Vietnam, primarily military construction equipment valued at approximately $19.6 million. We believe immediate attention should be given to-r-e- ceering._a1d rgndistributi theunusd equipment , valued at approximately $11 million, as soon as possible because the United States loses its right to repossess this equipment as of July 1974. BACKGROUND In October 1970, Mission representatives and the U.S. Military Assistance Command in Vietnam formed a planning group to determine requirements and to develop plans for transferring excess U.S. construction equipment and facili- ties to selected GVN agencies. GVN and the United States agreed on plans to turn over excess construction facilities, equipment, materials, and supplies to VECCO to support future construction programs in Vietnam. Approximately $43.7 million worth of U.S. construc- tion equipment, materials, and supplies were transferred to VECCO without being subjected to the normal screening process -7 0 A 9 J --- 4!r

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