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Last edited by Bestworking
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The $400 million was paid out of the DoD Foreign Military Sales (FMS) Trust Fund.  During my reserve career, I've reviewed more than a few of these transactions.  Nations place funds in the US Treasury as assurance against weapons, munitions and other materiel ordered from the US -- some from contractors and some from US depots and arsenals.  That transaction could be OKed by the president as it would be a nonappropriated fund (not appropriated by congress from tax and bond revenue).  Its the $1.3 billion, supposedly in interest that interests me.  Did a bit of research and found no info that the US Treasury pays interest on the trust fund deposits.  We studied this at the Army Finance School, but no mention of interest was made, either.

If so, then any payment would require a congressional appropriation.  To spend such would be in violation of the Anti-Deficiency Act.  That's a fine and up to 18 months in jail.  Violaters usually are fired and fined, but rarely go to jail,. Oh, they have to repay the expended funds.  That's the real punishment.  So, Obama, when exiting the WH on 20 January 2017, please leave a check for $1.3 billion on the Resolute desk in the Oval Office.

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