B-156954, AUG. 25, 1965

B-156954: Aug 25, 1965

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IN SUCH CONNECTION YOUR LETTER SAYS "CLAIMANT WAS TRIED AND CONVICTED IN LAOS OF EMBEZZLING $8. WE HAVE NOT ATTEMPTED TO DETERMINE THE PROPRIETY OF THE PAYMENT OF ANY PARTICULAR ITEM OF EXPENSE CLAIMED BUT ASSUME THAT IF YOU FIND ANY QUESTIONABLE ITEMS YOU WILL EITHER REFUSE TO CERTIFY SUCH ITEMS FOR PAYMENT OR REQUEST A DECISION CONCERNING THE PROPRIETY OF CERTIFYING ANY QUESTIONABLE ITEMS. IF THE TRAVEL OF THE CLAIMANT WAS PERFORMED PRIOR TO THE DATE THE SURETY MADE RESTITUTION THEN THE AMOUNT OWING CLAIMANT FOR SUCH TRAVEL PROPERLY COULD HAVE BEEN APPLIED IN REDUCTION OF THE DEBT OF THE CLAIMANT PRIOR TO COLLECTION FROM THE SURETY COMPANY AND THE SURETY PROPERLY MAY BE PAID AMOUNTS OWING THE CLAIMANT ON ACCOUNT OF SUCH TRAVEL.

B-156954, AUG. 25, 1965

TO MR. CHARLES L. HAIRSTON, AUTHORIZED CERTIFYING OFFICER, U.S. AID MISSION TO LAOS:

YOUR LETTER OF MAY 26, 1965, ACKNOWLEDGES THE RIGHT OF MR. HUGO L. SACDALAN, A FORMER EMPLOYEE OF YOUR AGENCY, TO TRANSPORTATION EXPENSES IN RETURNING TO HIS COUNTRY OF ORIGIN FOLLOWING COMPLETION OF AN EMPLOYMENT AGREEMENT FOR SERVICE IN LAOS. HOWEVER, YOU REQUEST OUR ADVICE AS TO THE PROPER DISPOSITION OF THE AMOUNT DUE. IN SUCH CONNECTION YOUR LETTER SAYS

"CLAIMANT WAS TRIED AND CONVICTED IN LAOS OF EMBEZZLING $8,468.81 OF U.S. GOVERNMENT FUNDS AND HAS BEEN UNABLE TO MAKE RESTITUTION.

"REIMBURSEMENT HAS BEEN MADE TO THE DEPARTMENT OF STATE THROUGH ITS BONDING COMPANY, HOWEVER CLAIMANT HAS SIGNED A PROMISSORY NOTE TO REPAY THE BONDING COMPANY.

"WOULD APPRECIATE YOUR ADVICE AS TO THE LEGALITY OF PAYMENT TO THE BONDING COMPANY OR TO THE EMPLOYEE.'

WE HAVE NOT ATTEMPTED TO DETERMINE THE PROPRIETY OF THE PAYMENT OF ANY PARTICULAR ITEM OF EXPENSE CLAIMED BUT ASSUME THAT IF YOU FIND ANY QUESTIONABLE ITEMS YOU WILL EITHER REFUSE TO CERTIFY SUCH ITEMS FOR PAYMENT OR REQUEST A DECISION CONCERNING THE PROPRIETY OF CERTIFYING ANY QUESTIONABLE ITEMS.

WHETHER YOU SHOULD PAY THE SURETY COMPANY THAT MADE GOOD THE LOSS TO THE GOVERNMENT OCCASIONED BY THE CLAIMANT OR THE CLAIMANT WOULD DEPEND UPON WHETHER THE OBLIGATION FOR THE PAYMENT OF TRAVEL EXPENSES TO THE CLAIMANT AROSE PRIOR TO THE DATE THE SURETY MADE RESTITUTION THEREBY EXTINGUISHING THE GOVERNMENT DEBT. IF THE TRAVEL OF THE CLAIMANT WAS PERFORMED PRIOR TO THE DATE THE SURETY MADE RESTITUTION THEN THE AMOUNT OWING CLAIMANT FOR SUCH TRAVEL PROPERLY COULD HAVE BEEN APPLIED IN REDUCTION OF THE DEBT OF THE CLAIMANT PRIOR TO COLLECTION FROM THE SURETY COMPANY AND THE SURETY PROPERLY MAY BE PAID AMOUNTS OWING THE CLAIMANT ON ACCOUNT OF SUCH TRAVEL, PROVIDED, OR COURSE, THE INDEBTEDNESS TO THE SURETY HAS NOT BEEN LIQUIDATED. MOREOVER, IF AT THE TIME THE SURETY MADE RESTORATION IT WAS UNDERSTOOD OR AGREED THAT ANY AMOUNT THAT LATER MAY BECOME DUE THE CLAIMANT BY REASON OF THE EXERCISE OF THE CONTINGENT RIGHT OF THE CLAIMANT TO RETURN TRANSPORTATION AT GOVERNMENT EXPENSE WOULD BE PAYABLE TO THE SURETY OR IF THE TERMS OF THE BOND REQUIRE PAYMENT OF SUCH MONIES TO THE SURETY, THEN, IN EITHER SUCH EVENT, SUCH AMOUNT NOW MAY BE PAID THE SURETY EVEN THOUGH THE TRAVEL OF THE CLAIMANT WAS PERFORMED AFTER THE SURETY HAD MADE FULL RESTITUTION TO THE GOVERNMENT.

ON THE OTHER HAND, IN THE ABSENCE OF ANY SUCH UNDERSTANDING OR AGREEMENT, OR REQUIREMENT UNDER THE BOND, AND IN THE EVENT CLAIMANT'S TRANSPORTATION REIMBURSEMENT ENTITLEMENT DID NOT ARISE UNTIL AFTER THE SURETY HAD, BY PAYMENT TO THE GOVERNMENT, EXTINGUISHED THE DEBT OWING THE GOVERNMENT THEN SUCH AMOUNT AS MAY BE DUE ON ACCOUNT OF SUCH TRAVEL SHOULD BE PAID TO THE CLAIMANT.

WE REQUEST THAT YOU ADVISE THIS OFFICE AND THE CLAIMANT OF THE DISPOSITION YOU MAKE OF THE AMOUNT DUE.