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State Department: U.S. Involvement in the American Club in Greece

NSIAD-88-207 Published: Sep 22, 1988. Publicly Released: Oct 25, 1988.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of State's involvement with the defunct American Club in Greece.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of State The Secretary of State should resolve with the Attorney General which funds will be used to pay the out-of-court settlements of the specific cases involving the American Club in Greece.
Closed – Implemented
The lawsuit has been settled, and the settlement has been paid from State Department appropriations.
Department of State The Secretary of State should hold ambassadors or their designees responsible for monitoring employee associations, as provided in the Foreign Affairs Manual, and ensure that such activities are operating in a financially responsible manner.
Closed – Implemented
State has taken significant steps toward addressing the shortcomings identified in the GAO report. State has tightened its operational regulations and placed obligations and accountability on the ambassadors or their designees to oversee the associations' operations. Monitoring association activities is also one of the functions of State's Office of Commissary and Recreation Affairs.
Department of State The Secretary of State should remind specifically involved employees that State will waive their diplomatic immunity if they attempt to evade personal debts or other personal liability that may accrue to them in their capacity as officers in embassy associations.
Closed – Not Implemented
State believes that the current policy of considering waiver of immunity on a case-by-case basis is more appropriate. State asserts that a policy of blanket waiver would not serve the interests of the United States, State Department, or its personnel, who may be subjected to personal liability without due process of law or in retaliation against them as U.S. diplomatic representatives.

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Topics

International Affairs
Americans employed abroadAssociationsClaims settlementDiplomatic privilege and immunitiesEmbassiesGovernment liability (legal)Indebtedness waiversInternational relationsLitigationNoncompliance