B-108648, JUL. 20, 1955

B-108648, JUL. 20, 1955

TO HONORABLE EDMUND F. MANSURE, ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 18, 1955, REQUESTING THAT DANIEL J. CASSANTO, AN AUTHORIZED CERTIFYING OFFICER, BE GRANTED RELIEF UNDER THE ACT OF DECEMBER 29, 1941, 55 STAT. 875, FOR PAYMENTS TOTALING $560.01 MADE ON THREE VOUCHERS WHICH HE HAD ERRONEOUSLY CERTIFIED FOR PAYMENT.

ONE OF THE VOUCHERS, 4-177133, OCTOBER 1946 ACCOUNT OF E. J. BRENNAN, COVERED AN IMPROPER PAYMENT OF $190.50 TO THE HOVEKAMP SUPPLY AND EQUIPMENT COMPANY. THIS AMOUNT REPRESENTS A COMMISSION PAID IN CONNECTION WITH A SALE OF EQUIPMENT FOR THE WAR ASSETS ADMINISTRATION ON APRIL 10, 1946, WHEREAS THE APPROVED DEALER AGREEMENT IS DATED APRIL 22, 1946. EARLIER REQUEST FOR RELIEF AS TO THIS PAYMENT WAS DENIED BY DECISION OF JULY 11, 1952, B-108648, FOR THE REASON THAT THE CERTIFYING OFFICER APPEARED TO HAVE DISREGARDED EVIDENCE ON THE VOUCHER THAT THE APPROVED DEALER AGREEMENT WAS NOT IN EFFECT AT THE TIME THE SALE WAS MADE.

IT MAY BE TRUE, AS STATED IN YOUR LETTER, THAT AT THE TIME THIS VOUCHER WAS CERTIFIED IT WAS A PHYSICAL IMPOSSIBILITY FOR A CERTIFYING OFFICER, IN THE PERFORMANCE OF HIS OFFICIAL DUTIES, TO GIVE CLOSE PERSONAL SCRUTINY TO EACH AND EVERY VOUCHER PRESENTED TO HIM FOR CERTIFICATION AND THAT HE NECESSARILY HAD TO RELY TO A LARGE EXTENT ON EXAMINATIONS MADE BY HIS VOUCHER EXAMINERS. HOWEVER, SUCH FACT IN ITSELF DOES NOT CONSTITUTE A BASIS FOR GRANTING RELIEF UNDER THE ACT OF DECEMBER 29, 1941.

ALSO, WHILE THE EXCEPTED ITEM IS INCLUDED IN A JUDGMENT OBTAINED AGAINST THE HOVEKAMP SUPPLY AND EQUIPMENT COMPANY IN THE AMOUNT OF $917.88 AND ALTHOUGH $265.30 OF SUCH JUDGMENT HAD BEEN LIQUIDATED IN PERIODIC INSTALLMENTS AS OF JANUARY 1, 1955, THERE APPEARS NO PROPER BASIS FOR GIVING PRIORITY TO THE ITEM OF $190.50 IN APPLYING THE COLLECTIONS. ACCORDINGLY, THE EXCEPTION MAY NOT BE REMOVED.

HOWEVER, SINCE THE JUDGMENT IS BEING LIQUIDATED AND AS IT IS STATED THERE IS EVERY REASON TO BELIEVE THAT IT WILL BE PAID IN FULL, WE WOULD HAVE NO OBJECTION IF THE DEPARTMENT OF JUSTICE SHOULD DECIDE THAT THE SUIT INSTITUTED AGAINST MR. CASSANTO BE HELD IN ABEYANCE SO LONG AS THE JUDGMENT DEBTOR CONTINUES TO MAKE PERIODIC PAYMENTS ON THE JUDGMENT.

THE REMAINING EXCEPTIONS INVOLVE PAYMENTS MADE TO THE A. C. SALES AND DISTRIBUTING COMPANY IN THE AMOUNT OF $72.65, COVERED BY VOUCHER 4 242231 IN THE JUNE 1946 ACCOUNT OF E. J. BRENNAN, AND $296.86 COVERED BY VOUCHER 4-115016 IN THE SEPTEMBER 1946 ACCOUNT OF E. J. BRENNAN. THESE EXCEPTIONS LIKEWISE INVOLVED THE PAYMENT OF COMMISSIONS IN CONNECTION WITH THE SALE OF EQUIPMENT AND WERE BASED ON THE FAILURE OF THE APPROVED DEALER TO SUPPORT THE CLAIMS WITH CUSTOMER-EXECUTED ORDERS AS REQUIRED BY THE APPROVED DEALER AGREEMENT.

IN REPLY TO SUCH EXCEPTIONS THERE WERE FURNISHED LETTERS FROM THE PURCHASERS OF THE PROPERTY IN WHICH THEY STATE THAT THE PURCHASES IN QUESTION WERE MADE THROUGH THE A. C. SALES AND DISTRIBUTING COMPANY. VIEW THEREOF, IT APPEARS THAT THE A. C. SALES AND DISTRIBUTING COMPANY WAS ENTITLED TO THE COMMISSIONS PAID AND THESE EXCEPTIONS, THEREFORE, WILL BE REMOVED.