B-115151, B-125959, JAN. 5, 1961

B-115151,B-125959: Jan 5, 1961

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EUROPEAN BRANCH: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 29. WHEREIN IT IS REQUESTED THAT CONSENT BE OBTAINED FROM US FOR THAT OFFICE TO RELEASE PAYMENT OF $44. EVIDENCE OF RECORD HERE DISCLOSES THAT THE PLAINTIFF CORPORATION IN THOSE ACTIONS IS OR WAS SUBSTANTIALLY A SOLE-OWNED CONCERN OF ROBERT E. THAT THE SAME INDIVIDUAL IS A PARTY DEFENDANT IN AN ACTION. THESE MATTERS WERE BROUGHT TO THE ATTENTION OF THE ATTORNEY GENERAL. COPIES OF OUR LETTER TO THE ATTORNEY GENERAL AND HIS REPLY ARE ENCLOSED.

B-115151, B-125959, JAN. 5, 1961

TO MR. ROBERT DRAKERT, ACTING DIRECTOR, EUROPEAN BRANCH:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 29, 1960, FILE REFERENCE I- 17909-EB 36, ENCLOSING, AMONG OTHER PAPERS, A COPY OF LETTER DATED NOVEMBER 9, 1960, WHICH YOU RECEIVED FROM THE DIRECTOR, UNITED STATES ARMY CONSTRUCTION AGENCY, WHEREIN IT IS REQUESTED THAT CONSENT BE OBTAINED FROM US FOR THAT OFFICE TO RELEASE PAYMENT OF $44,199.93, IN FAVOR OF CONSOLIDATED ENGINEERING, LTD. THE AMOUNT INVOLVED REPRESENTS AN AWARD MADE BY THE ARMED SERVICES BOARD OF CONTRACT APPEALS TO THE SUBJECT FIRM UNDER DOCKETS NOS. 3885 AND 3886, DATED SEPTEMBER 30, 1960.

EVIDENCE OF RECORD HERE DISCLOSES THAT THE PLAINTIFF CORPORATION IN THOSE ACTIONS IS OR WAS SUBSTANTIALLY A SOLE-OWNED CONCERN OF ROBERT E. BOWEN, AND THAT THE SAME INDIVIDUAL IS A PARTY DEFENDANT IN AN ACTION, CIVIL NO. 18,588, NOW PENDING IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT, WHEREIN THE GOVERNMENT SEEKS TO RECOVER DAMAGES FOR THE BREACH OF HIS, BOWEN'S FIDUCIARY RELATIONSHIP WHILE SERVING AS A CIVILIAN EMPLOYEE OF THE DEPARTMENT OF THE ARMY. THESE MATTERS WERE BROUGHT TO THE ATTENTION OF THE ATTORNEY GENERAL, AND BY LETTER DATED DECEMBER 23, 1960, THE ASSISTANT ATTORNEY GENERAL REQUESTED THAT WE WITHHOLD SUCH AUTHORITY IN VIEW OF THE PENDENCY OF THE FOREGOING LITIGATION.

ACCORDINGLY, THE UNITED STATES ARMY CONSTRUCTION AGENCY SHOULD BE ADVISED THAT SUCH PAYMENT SHOULD BE WITHHELD UNTIL FURTHER NOTICE FROM THIS OFFICE. COPIES OF OUR LETTER TO THE ATTORNEY GENERAL AND HIS REPLY ARE ENCLOSED.