Reconsideration of Barred Claim

Pursuant to a congressional request, GAO reconsidered the denial of a claim for rental fees submitted by a Vietnamese property owner. The original claim was denied on the basis that it was barred by the 6-year statute of limitations. In 1965, the Army rented property in Vietnam on a 1-year basis, with a renewal clause allowing four consecutive 1-year terms. The Army extended the lease twice. At that time, the property owner and his wife were in the process of obtaining a divorce, and the owner requested that rental payments be held in abeyance pending the outcome of the divorce. The owner subsequently changed his mind and requested the rental payments. However, the divorce proceedings are still ongoing, and the spouse cannot be reached for comment. GAO held that the claim was not time barred since it was filed within the 6-year time limit. Further, the rate of exchange in the lease is the exchange rate that prevailed rather than the current exchange rate. Thus, the rent due is based on 80 piasters to the dollar. GAO held that the amount due for back rent was $10,000. However, the property owner should be paid only $5,000, with the remainder being held by GAO since the spouse may want to file a claim for her share.