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ID-83-34 1 (1983-03-04)

handle is hein.gao/gaobabmvt0001 and id is 1 raw text is: NN 44 UNITED STATES GENERAL ACCOUNTING OFFICE /,, / WASHINGTON, D.C. 20548 I*NUTNIONAL IWIMN B-210832 MARCH 4,1983 Mr. D. P. McAuliffe, Administrator Panama Canal Commission APO Miami 34011 120714 Dear Mr. McAuliffe: Subject: Payment of Claims Against the Panama Canal (GAO/ID-83-34) During October 1, 1979 to March 31, 1982, the U.S. Attorney for the Canal Zone sent a number of final judgments against the Panama Canal Company by the U.S. District Court for the Canal Zone to the GAO for certification and payment from the permanent indef- inite appropriation for judgments established by 31 U.S.C. 1304 (formerly 31 U.S.C. 724a; recodified by Public Law 97-258, Sept. 13, 1982, 96 Stat. 877, 917). The judgments were paid from account 20X1741 entitled Judgments, U.S. Courts. A list of the claims forwarded, certified, and paid is attached.The question has been raised as to whether these payments should have been made from Panama Canal Commission operation and maintenance appropri- ations. This matter has been discussed with both your General Auditor and Chief Accountant and they have asked for our advice on this matter. Judgments (including interest) against the Panama Canal Com- pany, dissolved as of October 1, 1979, should not be paid from the permanent judgment appropriation. The judgment appropriation is available only when payment is not otherwise provided for. If a given judgment can be paid out of some appropriation or fund under the control of the agency involved, then payment is otherwise provided for and the judgment appropriation is not available. Prior to dissolution, the Panama Canal Company, as a Govern- ment corporation empowered to sue and be sued, paid its own judg- ments. Under the Panama Canal Act of 1979, (Public Law 96-70), the Panama Canal Commission was made successor to the Panama Canal Company and its funds, and its liabilities. Thus, the funding source that would have been used to pay the judgments listed in the Attachment had they become final prior to the Company's dis- solution still exists and is now within the control of the Commis- sion. Therefore, Panama Canal Commission funds are available to pay judgments (including interest) against the former Panama Canal Company. (487079) .5

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