The Pentagon has recently uncovered an additional $2 billion in accounting errors related to the valuation of military aid sent to Ukraine. This discovery increases the total amount of improperly valued material to $8.2 billion, as revealed by a recent U.S. Government Accountability Office (GAO) report.
The issue stems from the Pentagon's use of "replacement value" instead of "depreciated value" to calculate the worth of ammunition, missiles, and other military equipment dispatched to Ukraine. This miscalculation, initially identified in 2023, resulted in a $6.2 billion overstatement.
Dear US Tax payers
Just to let you know, that while you struggle to pay your rent, educate your kids and save something for a "rainy day"
The Pentagon "accidentally" paid Dictator Zelensky an Extra $6.2 billion of your money
"An accounting error" pic.twitter.com/m9bMlBi0YS
— Chay Bowes (@BowesChay) July 22, 2024
The latest findings have identified a further $2 billion in overstatements, paving the way for additional aid to Ukraine to match the amounts previously authorized by the Biden administration.
The GAO report highlighted that vague accounting definitions and the absence of specific valuation guidelines under the Presidential Drawdown Authority contributed to these errors. One notable example included in the report cited the valuation of 10 vehicles at $7,050,000, whereas documentation showed they should have been valued at zero due to their net book value being fully depreciated).
In a report just released from the Government Accountability Office, the Pentagon found another $2 billion in overvaluations of equipment delivered to Ukraine.
As a result, an additional $2 billion worth of arms can be sent to Ukraine to cover the difference approved by the US. pic.twitter.com/imCrQjqXKt
— OSINTtechnical (@Osinttechnical) July 26, 2024
In response to these findings, the GAO has issued seven recommendations to the Department of Defense, urging it to refine its accounting guidance and develop specific procedures for valuing defense articles.
The Pentagon has agreed with these recommendations and has outlined steps to address these discrepancies.
The implications of these accounting errors are significant, particularly as they allow for an increased flow of military aid to Ukraine amidst its ongoing conflict with Russia. The errors also underscore the complexities and challenges in the financial management of extensive military aid programs. The GAO has recommended that Congress take action to clarify the definition of value in the context of defense articles to prevent future inconsistencies.
This development comes as the U.S. continues to support Ukraine's defense efforts against Russian aggression, highlighting the need for accurate and transparent accounting in the administration of international military aid.
I guess this is what you get when you hire the best. Hmmm might need to check that. IMO