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[Query Concerning Interest Earned on Grant Funds by Foreign Government]

B-213909: Nov 28, 1984

Pursuant to a request from the Inspector General (IG) of the Agency for International Development (AID), GAO provided a legal opinion on whether the United States could recover interest earned by a foreign government on AID grant funds. The issue of major concern was interest earned by local and provincial elements of the Egyptian government on grant funds awarded by AID to the government of Egypt...

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B-213909, NOV 28, 1984, 64 COMP.GEN. 103

B-213909: Nov 28, 1984

SINCE THE STATUTORY PROVISION UNDER WHICH THE BVSP WAS FUNDED CONTAINS BROAD PROGRAM AUTHORITY AND SINCE THE STATED PURPOSE OF THE GRANT WAS TO SUPPORT EGYPT'S POLICY OF DECENTRALIZING AUTHORITY FOR DEVELOPMENT ACTIVITIES. WE BELIEVE THAT THE DISBURSEMENT OF THE GRANT FUNDS BY THE EGYPTIAN GOVERNMENT TO THE LOWER GOVERNMENTAL LEVELS WAS A LEGITIMATE AND PROPER PURPOSE OF THE GRANT ENTITLING THEM T...

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