B-194666 Aug 6, 1979

B-194666 Aug 6, 1979

The Honorable Juanita M. Kreps Secretary of Commerce

Dear Madam Kreps:

This is in response to a letter from the Deputy Assistant Secretary for Export Development requesting that Robert D. Culver, Imprest Fund Cashier and Deputy Director of the United States Trade Center in Tehran, Iran, be relieved of liability for the loss of $5,000 during a recent attack on the United States Embassy in Tehran. This amount represents the total funds entrusted to Mr. Culver as a petty cash fund.

The information submitted to us indicates that on the morning of February 14, 1979, the United States Embassy came under attack while Mr. Culver was at the Embassy conducting Government business. During this attack, Ms. Merhnaz Forghie, United States Trade Center Fiscal Assistant, was taken prisoner. During her detention, all documents in her possession there taken from her, including both the original and copies of petty cash vouchers in the approximate account of $966.44. (Because of the trauma of the moment and the fact that all copies of the vouchers were taken, Ms. Forghie was unable to recall the exact amount of the vouchers.) As the result of worsening conditions, Mr. Culver was unable to arrange for transportation and armed escorts to return to the United States Trade Center to retrieve the remaining petty cash funds still in the safe prior to his evacuation from Tehran. An estimated $1,879.19 in cash remained in the safe in Trade Center--along with approximately $2,154.37 in vouchers representing cash already paid out of the petty cash fund. The Embassy will attempt to recover any remaining funds from the safe, once the situation in Tehran permits.

Section 82a-1 of title 31, United States Code (1976), authorizes our office to grant relief to an accountable officer for physical loss of funds upon our concurrence in determinations by the agency head or his delegate--

"(1) that such loss or deficiency occurred while such officer or agent was acting in the discharge of his official duties, or that such loss or deficiency occurred by reason of the act or omission of a subordinate of such officer or agent; and

"(2) that such loss or deficiency occurred without fault or negligence on the part of such officer or agent."

Based upon the investigative findings, it was administratively determined that the loss occurred while Mr. Culver was acting in the discharge of his official duties and that it was caused by circumstances beyond his control and not attributable to fault or negligence on his part. The record supports this determination. Relief may be granted to Robert D. Culver pursuant to 31 U.S.C. Sec. 82a-1 for the entire amount originally placed in the petty cash fund since it is impossible to determine how much was already disbursed at the time of the attack and how much cash remained in the Trade Center safe. The loss may be charged to the current appropriation account available for the expense of the disbursing function, but if any cash is reclaimed from the safe, such appropriation account should be credited with the amount returned.

Sincerely yours,

Milton J. Socolar General Counsel