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![handle is hein.gao/gaobabjzq0001 and id is 1 raw text is:
Bech-
GAO '
United States General Accounting Office Office of
Washington, DC 20548 General Counsel
In Reply
eferto: B-201109
/jMAR 5 qRI
T e Honorable John F. Lehman
The Secretary of the Navy
Dear Mr. Secretary:
This is in response to a letter from J. A. Doyle, Assistant
Secretary of the Navy (Manpower, Reserve Affairs and Logistics),
requesting relief of accountable Postal Clerk Third Class Thomas J.
Baldoni, U.S. Navy, for the loss of Government funds in the amount
of $2,901.23. Mr. Doyle determined, pursuant to 31 U.S.C. § 82a-1
(1976), that the loss occurred while the accountable Postal Clerk
was acting in the line of duty and without fault or negligence on
his part.
Before July 1, 1971, our Office was involved in the process of
granting relief from liability of accountable officers for the loss
of postal funds, along with the Postmaster General. However, effec-
tive July 1, 1971, Public Law No. 91-375, the Postal Reorganization
Act, creating the Postal Service, authorizes the Postal Service to
relieve postmasters and employees of liability for losses and to
compromise, release, or discharge other claims on such terms as it
deemed just and expedient. 39 U.S.C. § 2601(b). Thus, the Postal
* Reorganization Act removed our Office from the process of granting
*relief from liability of accountable officers for the physical loss
of Postal Service funds. Moreover, section 2601(a)(3) of title 39,
United States Code, expressly permits the Postal Service to credit
the account of a military enlisted person performing postal duties
for losses of Postal Service funds.
The lost funds in this case were apparently not Government
funds within the meaning of 31 U.S.C. § 82a-1 (1976). The Postal
Service is authorized to make arrangements with the Department of
Defense to perform postal services through personnel designated by
them at bases or stations of the Armed.Forces, 39 U.S.C. § 4
(1976), Based on our reading of Postal Service Publicaton 3q8)
February 1980, entitled, Postal Agreement wih e tment of
Defense, the Postal Service has agreed toprovide services to the
Department including postage stamps, stamped paper, blank money
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