Military Base Closures - U.S. Financial Obligations in the Philippines: Nsiad-92-51 (Paperback)

Pursuant to a congressional request, GAO determined the potential U.S. financial obligations to the Philippines when the United States closes two military facilities there, focusing on: (1) the costs of separation allowances and contract termination; (2) whether the United States can recover any equipment for reuse elsewhere; and (3) whether the United States has any obligation for environmental cleanup or restoration. GAO found that: (1) U.S. liabilities for separation allowances totalled approximately $71.3 million, as of March 31, 1991; (2) Air Force and Navy activities underfunded severance pay liabilities by $12.9 million; (3) with the exception of Navy industrial fund's $10.1-million liability, the Department of Defense (DOD) stated that it had sufficient resources available to cover the shortfall; (4) most activities had not set aside funds for the $15.5 million in sick and annual leave liabilities because, under DOD policy, those liabilities are not funded until they are ready to be paid; (5) U.S. liabilities for contract termination costs are estimated to be $3.7 million; (6) the United States has invested $2.199 billion in military facilities in the Philippines, and the Air Force plans to remove 75 percent of the removable property and declare the balance excess to U.S. requirements; and (7) the Air Force and Navy have identified significant environmental damage at the bases, basing agreement does not impose responsibility upon the United States.