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B-163742 1 (1972-06-13)

handle is hein.gao/gaobaagju0001 and id is 1 raw text is: UNITED STATES GENERAL ACC9UfC1eFFTr (P 9% %mo U~cWASHINGTON, D.C. 20548 g. n, LOGISTICS AND COMMUNICATIONS DIVISION JUN 13 1972 B-163742 /7 I IIIIIU111/l I1( (lil//1 / l t/llu// l ll l 11111U LM096534 Dear Mr. Secretary: The General Accounting Office has examined the manage- ment of property disposal in Vietnam. Our examination included tfi-t&hree major install'ions at Cam Ranh Bay, Da Nang, and Long Binh. We were also concerned with the type of supervision and direction provided by the Army Disposal Agenf- n d the Area Support Commands, elements of the U.S. Army, Vietnam. During fiscal years 1969-71, property disposal activi- ties in Vietnam processed $1.7 billion of materiel, of which $300 million was usable property and the re-mainder was scrap. The volume for fiscal year 1971 was $117 million of usable property and $194 million of scrap. We are bringing our observations to your attention at this time because of the volume of excess property generated as forces are withdrawn from the Pacific. Prompt attention could result in improving management and increasing the re- turns realized from disposal operations. SAFEGUARDING AND ACCOUNTING FOR MATERIEL The Army has had difficulty in safeguarding and account- ing for the materiel being turned in for disposal in Vietnam, and large quantities of usable materiel have been written off the records because they could not be located. In fiscal year 1971 the three disposal activities wrote off about $18.3 million of such materiel. Our tests indicated that substantial addit'ional quantities of materiel were missing. For example, at the Long Binh activity, we could not locate property with a book value of $8.1 million which the records showed as being on hand. There is no way to ascertain what part of this discrep- ancy was due to recordkeeping problems and what part was due to loss or theft. The state of the records was such that no meaningful analysis of past transactions was possible.

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