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LCD-78-232 1 (1979-03-20)

handle is hein.gao/gaobaayzy0001 and id is 1 raw text is: ~~~COIMPTROLLE GENERqAL 00THE UNITED STIATIES ol/q l B-159390 RELEASED MARCH 20, 1979 The Honorable John M. Murphy Chairman, Committee on Merchant Marine and Fisheries House of Representatives Dear Mr. Chairman: Your January 31, 1978, lett us to vtit . certain claims made by the Deartment of Defesa&(_r)_ cernin s being achieved under i Cop ive Rate Program (CRP You also asked that we io ino and determine whether or not the rates offered under CRP are compensatory. In our July 7, 1978, response we advised you of our Areliminary findings with respect to the DOD claims. that time, we also told you that we had been denied access to forwarder recorus which are essential in deter- mining whether or not the rates were sufficiently high to return forwarders' costs. Your August 7, 1978, letter requested us to continue our investigation into the forwarders' rate levels. We later met with the committee staff and agreed to an alterna- tive approach to develop the desired information. In the interest of more timely reporting, we have decided to divide our audit effort into two separate phases: --The validation of DOD claims. --The evaluation of rate levels. Rather than waiting several months to complete work on the latter phase, we are reporting at this time on the first phase. We hope to issue another report by July 1979 which will deal solely with forwarder rates. LCD-78-232 (943328), 109146

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