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![handle is hein.gao/gaocrptafyu0001 and id is 1 raw text is:
G AO United States
General Accounting Office
Washington, D.C. 20548
Office of the General Counsel
B-276550
December 15, 1997
Mr. William R. Barton
Inspector General
General Services Administration
Dear Mr. Barton:
This responds to your request for our opinion on whether the Administrator,
General Services (GSA), has the authority to compromise debt arising from the
disposal of surplus property under section 204(g) of the Federal Property and
Administrative Services Act of 1949 (Property Act), 40 U.S.C. § 485(g) (1994).
Section 204(g) provides that where the Administrator has extended credit in
connection with the disposal of surplus property, he may enforce, adjust, and settle
any right of the Government with respect to [that credit] in such manner and upon
such terms as he deems in the best interest of the Government. As explained
below, section 204(g) does not provide the Administrator with compromise
authority.
While you have asked for our views on this issue, we note that our statutory role in
this area was limited in 1996, when the Congress transferred the Comptroller
General's authority under 31 U.S.C. § 3702(a) to settle and adjust claims of or
against the United States to the Office of Management and Budget (OMB). OMB in
turn delegated parts of this authority to other executive departments and agencies.
Pub. L. No. 104-316, Tit. II, § 202(n)(1), 110 Stat. 3843-44 (1996); see also Pub. L. No.
104-53, § 211, 109 Stat. 535 (1995).
Bac kgro und
Your question arose in connection with the GSA sale of the United States Custom
House in Boston to the City of Boston. In March 1986, GSA declared that the
Custom House was surplus property, and, in October 1987, sold it to Boston,
receiving from the city a 10-year promissory note. In April 1991, Boston defaulted
on the note. At the time, Boston's total outstanding debt (principal and
accumulated interest) exceeded $13 million. In January 1996, after a restructuring
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