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Military Aid: Stronger Oversight Can Improve Accountability

NSIAD-92-41 Published: Dec 16, 1991. Publicly Released: Dec 16, 1991.
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Highlights

Pursuant to a congressional request, GAO reviewed the management controls over U.S. military aid to foreign countries, focusing on: (1) how the United States exercises oversight for military aid; and (2) whether more emphasis on accountability is needed.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
To impose a statutory requirement for U.S. oversight, place greater emphasis on accountability and controls, and clarify existing provisions related to security for U.S.-funded items, Congress may wish to consider modifying the Arms Export Control Act to require the Secretary of Defense, after coordination with the Secretary of State, to implement monitoring and oversight actions appropriate for each recipient country to ensure that existing conditions pertaining to use, security, and transfer of U.S.-funded military items are met.
Closed – Implemented
On May 25, 1995, the House passed H.R. 1561, which includes a separate security assistance title that incorporates the essence of the recommendation by including a section on end-use monitoring of items. However, the Senate did not act on the measure. Prospects for its action are unknown.
To impose a statutory requirement for U.S. oversight, place greater emphasis on accountability and controls, and clarify existing provisions related to security for U.S.-funded items, Congress may wish to consider modifying the Arms Export Control Act to require recipient countries, as a condition to receiving U.S. military grant aid, to permit U.S. representatives to review those countries' internal control systems and the accountability, disposition, and use of U.S.-funded items.
Closed – Implemented
On May 25, 1995, the House passed H.R. 1561, which includes a separate security assistance title that incorporates the essence of the recommendation by including a section on end-use monitoring of items. However, the Senate has not acted on the measure. Prospects for further action are unknown.
To impose a statutory requirement for U.S. oversight, place greater emphasis on accountability and controls, and clarify existing provisions related to security for U.S.-funded items, Congress may wish to consider modifying the Arms Export Control Act to require recipient countries to agree to safeguard all defense articles, including unclassified as well as classified items.
Closed – Implemented
On May 25, 1995, the House passed H.R. 1561, which includes a separate security assistance title that incorporates the essence of the recommendation by including a section on end-use monitoring of items. However, the Senate has not acted on the measure and prospects for its passage at this time are unknown.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should direct the Director, Defense Security Assistance Agency, to develop accountability standards for military aid programs and to revise the Security Assistance Management Manual to clarify what monitoring is required to provide reasonable assurances that recipient countries are meeting conditions set forth in legislation and aid agreements. In applying those standards, Security Assistance Organizations should take into account, among other factors, the adequacy of the recipient country's internal control systems, the vulnerability of items to misuse and diversion, and the sensitivity and lethality of the items. Those standards should apply to all military aid items, including both pre- and post-1982 military assistance programs.
Closed – Implemented
DOD believes that the Security Assistance Manual is clear in defining responsibility to monitor country use of U.S. funded equipment. DOD sent a message to all Security Assistance organizations reiterating existing policies and procedures. GAO believes that clarification standards need to be included in the Security Assistance Manual. As of late 1994, no further action has been taken.

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Topics

AccountabilityFederal aid to foreign countriesForeign governmentsForeign military assistanceForeign military salesInternational relationsInventory control systemsMonitoringReporting requirementsMilitary assistance