Central America:

Activities of the Verification Commission

NSIAD-90-65: Published: Feb 23, 1990. Publicly Released: Feb 23, 1990.

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Pursuant to a legislative requirement, GAO audited the expenditure of funds transferred from the Department of Defense to the Agency for International Development (AID) to support the activities of the Verification Commission which was established to ensure compliance with the Sapoa Agreement.

GAO found that the Commission's activities were curtailed when political events in Nicaragua prevented it from carrying out its duties, and subsequently it: (1) returned about $2.2 million in unspent funds, proceeds from vehicle sales, and earned interest to AID; (2) had vehicles and electrical generators put in storage pending possible future use; (3) reduced employee salaries and recouped some funds; (4) was forced to limit its activities to cease-fire investigations, verifications, talks to demobilize and repatriate Resistance members, and election monitoring; and (5) was still receiving funds from AID.

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