B-134486, APR. 7, 1958

B-134486: Apr 7, 1958

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TO THE SECRETARY OF THE TREASURY: REFERENCE IS MADE TO YOUR LETTERS OF OCTOBER 21. THAT THEY SHOULD NOT HAVE BEEN REFLECTED IN THE SAID DISBURSING OFFICER'S ACCOUNTS AND THAT THE FUNDS WERE OTHERWISE ACCOUNTED FOR PURSUANT TO PROCEDURES ARRANGED WITH THE CHINESE GOVERNMENT. SUCH ACTION WILL OBVIATE THE NEED FOR THE RELIEF REQUESTED FOR MR. WE HAVE TODAY NOTIFIED THE ATTORNEY GENERAL OF THE ACTION TAKEN SO THAT ANY COLLECTION ACTION WHICH MAY HAVE BEEN TAKEN AGAINST THE DISBURSING OFFICER OR HIS SURETY WILL BE DISCONTINUED.

B-134486, APR. 7, 1958

TO THE SECRETARY OF THE TREASURY:

REFERENCE IS MADE TO YOUR LETTERS OF OCTOBER 21, 1957, AND JANUARY 17, 1958, CONCERNING THE DEFICIENCIES OF $514,681.11 AND NEW TAIWAN $23,304,342.82 IN THE ACCOUNTS OF PAUL D. BANNING, FORMER CHIEF DISBURSING OFFICER BY HOWARD T. SMITH, ASSISTANT DISBURSING OFFICER, TAIPEI, TAIWAN FOR THE PERIOD SEPTEMBER 26 TO NOVEMBER 18, 1950, REPORTED IN CERTIFICATE OF SETTLEMENT DATED OCTOBER 2, 1957.

THE ADDITIONAL EVIDENCE TRANSMITTED WITH YOUR LETTER OF JANUARY 17, REASONABLY SHOWS THAT THE FUNDS INVOLVED BELONGED TO THE CHINESE GOVERNMENT, THAT THEY SHOULD NOT HAVE BEEN REFLECTED IN THE SAID DISBURSING OFFICER'S ACCOUNTS AND THAT THE FUNDS WERE OTHERWISE ACCOUNTED FOR PURSUANT TO PROCEDURES ARRANGED WITH THE CHINESE GOVERNMENT. ON THE BASIS OF THE PRESENT RECORD, OUR CIVIL ACCOUNTING AND AUDITING DIVISION THEREFORE HAS TODAY BEEN DIRECTED TO ISSUE A SUPPLEMENTAL SETTLEMENT OF THE INVOLVED ACCOUNTS REMOVING THE CHARGES. SUCH ACTION WILL OBVIATE THE NEED FOR THE RELIEF REQUESTED FOR MR. BANNING, AND WE HAVE TODAY NOTIFIED THE ATTORNEY GENERAL OF THE ACTION TAKEN SO THAT ANY COLLECTION ACTION WHICH MAY HAVE BEEN TAKEN AGAINST THE DISBURSING OFFICER OR HIS SURETY WILL BE DISCONTINUED.

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