Payment for Transportation of Material to Saudi Arabia by the U.S. Army Corps of Engineers
Highlights
GAO surveyed the payment for transportation of material to Saudi Arabia in connection with the presence of the Army Corps of Engineers in that country. The objective of the survey was to determine whether adequate controls and procedures exist to assure that the United States Government does not absorb transportation costs which should be paid by the host country. Under a diplomatic agreement between Saudi Arabia and the United States (known as the Engineer Assistance Agreement), the Corps is authorized to provide complete engineering and construction management for the design and construction of specified facilities for the Saudi military forces. In accordance with the Engineer Assistance Agreement, Saudi Arabia makes deposits to the Chase Manhattan Bank in the form of irrevocable letters of credit for the Corps' services and construction costs.