[Navy Officer's Claim for Indebtedness Waiver]

B-258488: Mar 30, 1995

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A Navy officer appealed the settlement partially denying her requested waiver of indebtedness for erroneous Overseas Housing Allowance (OHA) payments, contending that she exhausted the erroneous payments to cover the expenses she incurred for her leased quarters after she was notified she was not entitled to OHA. GAO held that the indebtedness waiver was appropriate, since the: (1) erroneous OHA payments covered expenses erroneously authorized; and (2) claimant spent the allowance in good faith. Accordingly, waiver was granted.

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