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Stricter Enforcement of Refugees' Transportation Loan Repayments Needed

NSIAD-85-56 Published: Mar 08, 1985. Publicly Released: Mar 08, 1985.
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Highlights

GAO reviewed the Department of State's transportation loan program, which finances the transportation of refugees from temporary asylums overseas to the United States through a revolving loan fund, administered by the Intergovernmental Committee for Migration (ICM), which is an international organization based in Switzerland.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of State In addition to maintaining ongoing efforts to improve voluntary agency collection efforts, the Secretary of State should: (1) determine whether the current language of the promissory notes legally binds refugees to repay these loans; (2) if the notes are considered legally binding, seek an agreement with ICM to assign its defaulted notes to State for collection; and (3) if the notes are not considered legally binding, revise future notes to ensure their legal effectiveness and allow for them to be assigned to State. In the event that existing and future promissory notes can neither be made binding obligations nor assigned for collection, State should consider changing the nature of its loan program so that the loans are made by State to the refugees.
Closed – Implemented
State developed a revised promissory note for use worldwide. State believes that the new note is legally binding and provides for ICM to assign defaulted loans to State for collection. State developed criteria for determining which loans in default will be assigned to State. As of November 1987, ICM has assigned 28 notes, valued at $29,678, to State for collection.
Department of State The Secretary of State should make sure that all U.S.-bound refugees are thoroughly briefed on their loan obligations and sign their promissory notes, as early as possible, prior to their departure to allow ICM sufficient time to provide the voluntary agencies with the documents needed for collection. In addition, agreements with the voluntary agencies must be changed to ensure that they: (1) establish loan criteria and milestones specifying when uncollected notes are delinquent and in default; and (2) submit to State for further action the names and addresses of those refugees whose loans become delinquent.
Closed – Implemented
Refugees are being briefed in orientation classes on their loan obligations prior to their departure for the United States. State and ICM reached an agreement whereby ICM will assign defaulted notes to State for collection, and State continues to work to develop ways for voluntary agencies to obtain correct addresses for refugees who have not repaid their loans.

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Topics

Aid to refugeesCollection proceduresImmigrationInternational cooperationLaw enforcementLiability (legal)Loan defaultsLoan repaymentsTransportation costsRefugees