Foreign Assistance Programs

In testimony before a congressional subcommittee, GAO reviewed its recently completed and ongoing work on U.S. foreign assistance programs. In a report to the Agency for International Development (AID), GAO reported that AID does not have adequate information on the number and value of host country contracts, and GAO has begun a survey of AID contracting activities. GAO also reported on AID efforts to categorize troubled projects and identify those project funds that should be deobligated. GAO will soon issue a report on donor approaches to development assistance and is reviewing commodity import programs. Other GAO studies include reports on AID management of its Private Voluntary Organization program and balance-of-payments problems which are having an adverse effect on development assistance projects; the need for efforts to deter deforestation in developing countries; the need for AID to give greater attention to the problem of postharvest food losses; and the level of commitment to fighting malaria. In addition, GAO will review direct U.S. assistance to refugee programs and the coordination of U.S. contributions to various international organizations. GAO pointed out that large foreign military sales programs are being provided to countries which may not be able to repay the loans, and it is preparing a report on the liberal financing which Israel has requested to pay for its defense needs. In addition, GAO stated its concern over the inappropriateness of military equipment which has been provided to developing countries. Finally, GAO reported that the financial management and monitoring of leased property is still inadequate and that congressional notification requirements are not being fully met.