NCJ Number
72834
Date Published
1979
Length
25 pages
Annotation
Gaps found in purchasing controls at U.S. Government offices overseas in the Pacific and Far East, coupled with reports of widespread collusion and bribery, indicate procurement fraud in these offices.
Abstract
At most locations visited, GAO found some degree of procurement abuse, such as prohibited and questionable purchases, questionable payments, and purchases exceeding authority. Inadequate competition and bribery and collusion were also found. Fewer abuses were experienced by procurement offices with highly centralized authority and with frequent, thorough internal reviews. In addition, aggressive, corrective action when problems were identified helped to minimize abuses while increased U.S. citizen control of procurement helped to improve enforcement of controls. GAO's recommendations to the Secretaries of State, Defense, Army, and Navy and to the Administrator of Veterans Affairs, include designating a single office to monitor and assist all Navy procurement activities in the Far East; transferring Veterans Administration procurement authority in Manila, Philippines, to the American Embassy; and assuring that purchasing activities are periodically reviewed and that problems are corrected. The report further recommends greater Navy use of U.S. citizens for key civilian procurement positions and improved guidelines for military department procurement. (Author abstract modified)