Skip to Highlights

GAO commented on the General Services Administration's (GSA) authority to compromise debt arising from the disposal of surplus property under section 204(g) of the Federal Property and Administrative Services Act of 1949. GAO held that: (1) section 204(g) does not provide GSA with compromise authority; (2) GSA may not revise the terms of its credit offerings in such a way that would result in a reduction of the outstanding balance unless it receives adequate consideration from the debtor in return; and (3) if GSA persists in its current interpretation of section 204(g), it should formally request a decision from the Attorney General interpreting section 204(g).

Full Report