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B-227325,B-227527 1 (1987-10-21)

handle is hein.gao/gaobadajq0001 and id is 1 raw text is: United States GiAD) General Accounting Office Washington, D.C. 20548 Office of the General Counsel B-227527, B-227325 October 21, 1987 Mr. Matthew K. McElhaney Department of the Navy Naval Facilities Engineering Command 200 Stovall Street Alexandria, Virginia 22332-2300 Dear Mr. McElhaney: You are concerned about a lease dispute between an Italian landlord and the United States Navy involving a lease for 205 units of military family housing in Sigonella, Italy. The Italian landlord has brought suit in an Italian Court, and currently the parties are discussing the possibility of- a settlement. You ask whether there might arise individual or personal liability under the Antideficiency Act, 31 U.S.C. S 1341, for the Navy officials who unilaterally modified the lease by tendering a lower rental payment than called for by the lease. The Justice Department also is concerned about this issue and asks whether this Office would approve any judgment or compromise settlement for payment, and whether the Comptroller General's approval would be subject to any limitations or conditions. For the reasons given below, we find that the Navy officials acted properly in unilaterally modifying the lease and that they would not be personally liable under the Antideficiency Act should the landlord obtain a judgment in an Italian court or should there be a compromise settlement. We also find that this Office would certify an adverse judgment or compromise settlement for payment, so long as it is properly certified by the United States Attorney General as required by section 2414 of title 28 of the United States Code, and it is final. BACKGROUND In a report on Leased Military Housing Costs in Europe, GAO/NSIAD 85-113 .(July 24, 1985), we concluded that several leases under consideration violated the Antideficiency Act, 31 U.S.C. § 1341, because they obligated the United States to pay indefinite or indeterminate rental amounts. The Antideficioncy Act prohibits United States officers and employees from subjecting the Government to liabilities and expenditures in excess of those authorized by law. In prior

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