---- ‘Ilnit,ed States Gr~uc~ral Accounting Office Fact Sheet for t,he Honorable GAO &.lward M. Kennedy, U.S. Senate SPl;~t,f’nIfwr 1990 EL SALVADOR Pipeline of U.S. Aid as of August 1990 -““.-.-.l. _--l__.-.----“-- --- united states GAO General Accounting OfYice Washington, D.C. 20548 National Security and International Af’f’aim Division B-240989 September 19, 1990 The Honorable Edward M. Kennedy United States Senate Dear Senator Kennedy: As you requested,we determined the amount of U.S. military and eco- nomic assistancefor El Salvador that has not been expended.This information updates our fact sheet provided to you on February 23, 1990, El Salvador: Pipeline of U.S. Military and EconomicAid (GAO/NSIAD-90421R3). As of August 1990, about $432 million in aid to El Salvador had not Results in Brief been spent. Of this amount, about $64 million was for military assis- tance and about $378 million was for economicassistance.About half the unexpended military assistance,or about $26 million, related to items that had been ordered through the DefenseSecurity Assistance Agency and military services but had not been delivered. Unexpended economicaid consistedof about $36 million in unobligated funds and about $343 million in funds that had been obligated but not expended. Unexpended military assistancefunds for El Salvador totalled Military Assistance $63.6 million in August 1990 (seetable 1). This amount includes unobli- Pipeline gated assistancefunds and funds obligated through agreementswith the Salvadoran government that were (1) not committed for specific uses, (2) committed to specific Salvadoran purchasesof military items that have not been ordered, and (3) related to items that have been ordered but not delivered to El Salvador. Table 1: Milltmy Awlrtance Funds fmi~ablo to El Salvador (asof Aug. 24, Dollars in millions ‘Army, Navy, and Air Force data as of August 1, 1990. Source: Defense Security Assistance Agency. Page 1 GAO/NSIADBO-285FS pipeline of U.S. Aid to El Salvador Fiscal year 1990 military aid available to El Salvador under the Foreign Military Financing Program amountedto $84.6 million for purchasesof military goodsand services.As of August 24,1990, all but $10 million of these funds had been obligated. The DefenseDepartment expects that $6 million of the $10 million will also be obligated by September30, 1990. The remaining $6 million would be subject to legislative embargo’ and was expectedto be reprogrammedin September1990. Of funds already obligated through agreementswith the Salvadoran government,$4.7 million2 had not beencommitted to specific Salvadoran purchasesof military items. An additional $12.7 million had beencom- mitted to pay for specific purchases,but the orders had not beenplaced. Of this amount, $9.9 million has beencommitted for the purchaseof 12 V160 armored vehicles equipped for combat operations in urban areas. Purchaseson order but not yet delivered amountedto $26.1 million1 as of August 1,lOOO.(The DefenseDepartment includes shipmentsin transit as being delivered.) Becauseshipmentsmay be made daily, the amount of undelivered orders may have changedsince we obtained the data. DefenseDepartment information indicates that almost one-third of the undelivered orders consist of miscellaneousitems such as individual clothing and equipment,nonmilitary vehicles,generator sets, radios, and cloth and raw material for uniforms and boots. The pipeline also includes spares,equipment repair services,battery supplies,medical items, ammunition, aircraft parts, and training. Figure 1 shows the types of military supplies and equipment that have beenordered but not delivered. ‘Section 638 of the Foreign Operations, Ekport Financing, and Related Programs Appropriations Act, 1990 (the Harldn Amendment), requires that $6 million of appropriated funds for military assistance and financing for El Salvador not be expended until the President reports to Congressthat El Sal- vador has substantially concluded all investigative action on the January 1981 murders of two U.S. land reform consultants and has pursued all legal avenues to bring to trial and obtain a verdict on those who ordered and carried out the murders, as well as the September 1988 massacre near San Frandsco, El Salvador. 21ncludes$0.3 million from prior fiscal year funds. %cludes purchases on order from current and prior fiscal years. psge 2 GAO/NSIAlHO-2f3SFB Pipeline of U.S. Aid to El Salvador Figure 1: Milltsry Item8 Ordered but Not DelIvered (as of Aug. 1, 1!330) &3% Aimatt parts For fiscal year 1991,the executive branch has requested$90 million in Foreign Military Financing to fund additional military supplies,equip- ment, and servicesfor El Salvador. As of August 1990, unexpendedeconomicassistancefunds for El Sal- Economic Assistance vador amountedto about $378 million. About $343 million, or about Pipeline QOpercent, was EconomicSupport Fund,4DevelopmentAssistance,5and 4The EcoknicSupport Fund is used to promote economic or political stability in areas where the United States has special security or other interests. It may be provided as project aid or as cash transfers to finance imports and support balance of payments. “Development Assistance is project aid to provide basic needs to the poor and advance economic development. Page g GAO/NStAD-fB28SF8 pipeline of U.S. Ald to El Salvador E249989 Public Law 480”moniesthat had been obligated but not expended.The remaining $34.6 m illion had not been obligated. Table 2 lists U.S. eco- nomic assistancefor El Salvador that has not been obligated or expended. Table 2: Economic Aaslatance Funds Avallable to El Salvador (as of Aug. 21, Dollars in millions 1Qw Status of funds Amount Unobligated Economic Support Fund $22*la Development Assistance 12.5 Obligated but unexpended Economic Support Fund cash transfers 49.0 - Economic Support Fund and Development Assistance projects 288.8b Public Law 480 5.2 Total $377.6 aAmount includes $1.6 million from the Central American Survival Assistance Program, a separate no- year account, to assist displaced Salvadoran families. bData as of June 30,199O. Source: Agency for International Development. Fiscal year 1990 economicassistancefor El Salvador and a small amount of 1989 aid funds carried over for obligation in 1990 totalled $262.4 m illion. This amount includes $146.9 m illion in EconomicSup- port Fund monies($98.0 m illion for cash transfers and $47.9 for project assistance),$69.7 m illion in DevelopmentAssistance,and $46.8 m illion in Public Law 480 funds. As of August 21,1990, the Agency for International Developmenthad not yet obligated $22.1 m illion in EconomicSupport Fund project aid and $12.6 m illion of the DevelopmentAssistancefunds. All Economic Support Fund cash transfers and hrblic Law 480 funds had been obli- gated. Becausethe DevelopmentAssistancefunds must be obligated in the year they are appropriated, Agency for International Development officials told us that the remainder would probably be obligated by Sep tember 30,lOOO.Someof the EconomicSupport Fund moniesmay be carried over for obligation in fiscal year 1991. “Public Law 480 (Food for Peace)Title 1 authorizes the provision of long-term, low-Merest loans to purchase U.S. agricultural cmnmodities. Title II authorizes food donations to benefit needy people. Page 4 GAO/NSIAIMlXM~ pipeline of U.S. Aid to El Salvador As of June 30,1990, obligated but unexpendedEconomicSupport Fund and DevelopmentAssistancemoniesfor project assistanceamountedto $288.8 million for current and prior fiscal years. The Agency for Inter- national Developmentmission in El Salvador estimatedthat about $30 million of these funds would be expendedby September30,199O. As of August 21,1990, the Agency for International Developmenthad not disbursed$49 million in EconomicSupport Fund moniesobligated for cash transfers. The agencyexpects to disbursethese funds in Sep- tember 1990. A final agreementfor shipment of $6.2 million in Public Law 480 Title I food commoditieswas signedwith the government of El Salvador on August 2,199O.The shipment had not beenmade as of August 21,199O. Agency officials expect it will be delivered in September1990. The executive branch has requested$284 million in economicaid for fiscal year 1991.This amount includes economicassistancefrom the EconomicSupport Fund ($180 million), DevelopmentAssistance ($64 million), and Public Law 480 ($40 million). To obtain the information for this fact sheet,we interviewed officials Scopeand from the Agency for International Development,the DefenseSecurity Methodology AssistanceAgency, and the military services.We also reviewed agency documents,including listings of active salescasesprepared by the mili- tary servicesand economicaid financial reports. For purposesof this fact sheet,the pipeline includes funds available for obligation and funds obligated but unexpended.We obtained the most recent data available for the various sourcesof funds; however, agencyreporting dates vary, We conductedour review during August 1990 in accordancewith gener- ally acceptedgovernment auditing standards.We did not obtain written agencycomments,but we provided a draft of this fact sheet to Defense Security AssistanceAgency and Agency for International Development officials, who concurred with the data in the report. Unless you publicly announceits content earlier, no further distribution Y of this fact sheet will be made until 10 days from its issue date. At that time we will provide copiesto interested congressionalcommittees,the Secretariesof Defenseand State, the Administrator of the Agency for Page 5 GAO/NSIAD-@O-285FSPipeline of US. Aid to El Salvador B44OB89 International Development,and the Director of the Office of Manage- ment and Budget. We will also provide copiesto other interested parties upon request. Staff who made major contributions to this fact sheet are John Brummet, Assistant Director, and Audrey Solis,Evaluator-in-Charge.If you have any questions,pleasecall me on (202) 2754128. Sincerelyyours, Joseph E. Kelley Director, Security and International Relations Issues (464184) Page 0 GAO/NSIAD-9O-2S5FY3 pipeline of U.S. Aid to El Salvador _I.--.---- P-m” Ordering Information The first five copies of each G A O report are free. Additional copies are $2 each. Orders should be sent to the following address, accom- panied by a check or money order made out to the Superintendent of Documents, when necessary. Orders for 100 or more copies to be mailed to a s ingle address are discounted 25 percent. CJ.S.General Accounting O ffice P.O . Box 6015 G a ithersburg, MD 20877 Orders may also be placed by calling (202) 2756241.
El Salvador: Pipeline of U.S. Aid as of August 1990
Published by the Government Accountability Office on 1990-09-19.
Below is a raw (and likely hideous) rendition of the original report. (PDF)