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B-177126 1 (1972-12-19)

handle is hein.gao/gaobaagah0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 B-177126 DEC 19 1972 LM096212 Dear Mr. Chairman: This is in reply to your letter of September 19, 1972, wherein you requested that our auditors in S~aion examine into the purchases of liquor supplies and conversions of Military Payment Certificates (M Ty American p,/q, > LeZio Post ' _(7 Purchases of liquor supplies Your letter stated that you had information which indicated that the Legion Post has been purchasing its liquor supplies from Vietnamese Customs, and that the liquor was clearly marked as being the property of the U.S. Vietnam Regional Exchange (VRE). You suggested that we visit Post 34 to determine the accuracy of this information and obtain additional information, if possible, from Mr. Robert G. Kay, Commander, Post 34. During a visit to Post 34 on October 19, 1972, we examined the liquor and beer stocks. We found that 35 of the 254 bottles of liquor and wine in the Post's inventory had either a VRE stamp or VRE price marking. We also counted 34 cases of canned Budweiser beer in the Post's liquor storeroom but none of these had any identifying VRE markings. Mr. Kay, who resigned as Commander of Post 34 effective October 10, 1972, informed us that prior to a May 1972 raid by Government of Vietnam (GVN) Customs, his understanding had been that Post 34 imported its liquor and beer duty free through GVN Customs. Mr. Kay stated that he was not familiar with the details concerning these imports because they were handled entirely by Mr. Stuart W. Reichstein, former Executive Director of Post 34. Documentation made available to us by U.S. Agency for International Development (USAID) customs advisors showed that seven duty-free imports of liquor and beer for Post 34 cleared GVN Customs on the basis of U.S. military transportation control and movement documents (TCMD's). Six of the imports cleared Customs during the period January 14, 1972-April 28, 1972. We were unable to determine the clearance date for the remaining import. We were not able to ascertain the authenticity of the TCMD's because (1) the military unit cited on the documents as the consignor has been disestablished, and (2) transportation control numbers normally printed on TCMD's were not shown on the documents. The customs advisors informed us that the TCMD's probably were forged. +O1§30

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