The Pentagon has found additional errors in the calculations of ammunition, missiles and other equipment sent to Ukraine, increasing the total amount of mispriced materials to $8.2 billion, a U.S. government report released yesterday said.
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The U.S. Defense Department faced problems accurately valuing defense goods sent to Ukraine due to unclear accounting definitions, a new report from the Government Accountability Office says.
In 2023, the Pentagon said its staff used “replacement cost” instead of “amortized cost” to calculate billions of dollars worth of materials shipped to Ukraine. The $6.2 billion error paved the way for billions more dollars worth of weapons to be shipped to Kyiv.
The Pentagon said another $2 billion in inflated value has since been discovered, leading to the possibility of additional weapons worth that amount being shipped to Ukraine.
The U.S. Government Accountability Office, which conducted the calculations, recommended that Congress clarify the definition of value in the context of defense goods under the president’s arms reduction authority.
The agency also made seven recommendations to the Defense Department, urging it to update its guidance and develop component-specific assessment procedures. The Pentagon said it agreed with all of the recommendations and outlined steps to address the issues.
After the revaluation, $2 billion will be added to the PDA program, which allows military aid to be provided directly from the Pentagon.
Source: Racurs
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