The Pentagon Discovers $2 Billion Errors in Valuation of Aid Sent to Ukraine
WASHINGTON –
A recent U.S. government report revealed that the Pentagon has identified additional errors totaling $2 billion in its calculations for ammunition, missiles, and other equipment sent to Ukraine. This brings the total value of improperly valued material to $8.2 billion.
The U.S. Department of Defense has struggled with accurately valuing defense articles sent to Ukraine due to unclear accounting definitions, as highlighted in a new Government Accountability Office report. In 2023, a $6.2 billion error was made by using “replacement value” instead of “depreciated value,” allowing for billions more to be sent to Kyiv.
Following the initial error, the Pentagon has now found an additional $2 billion in overstatements, enabling more arms to be sent to Ukraine to meet the approved aid amount under President Joe Biden’s administration. The GAO has recommended that Congress clarify the definition of value for defense articles under the Presidential Drawdown Authority, along with issuing recommendations to update guidance and develop specific valuation procedures for the Defense Department.
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