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)

                      ----   ‘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__.-.----“--

GAO                                      General Accounting OfYice
                                         Washington, D.C. 20548

                                         National Security and
                                         International Af’f’aim Division

                                         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

                                         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
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

‘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)

                                                                                                  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

                                           Page g                                   GAO/NStAD-fB28SF8 pipeline of U.S. Ald to El Salvador

                                           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
Table 2: Economic Aaslatance Funds
Avallable to El Salvador (as of Aug. 21,   Dollars in millions
1Qw                                        Status of funds                                                                             Amount
                                             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

           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.

           Joseph E. Kelley
           Director, Security and International
             Relations Issues

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