The Honorable John Tower Chairman, B-215491

Decision Date13 June 1984
Docket NumberB-215491
PartiesThe Honorable John Tower Chairman, Committee on Armed Services United States Senate
CourtComptroller General of the United States

Dear Mr. Chairman:

In recent discussions with Mr. Drew Harker of your staff, we have learned that consideration is being given to a proposed amendment to the 1985 Department of Defense authorization bill which would permit the compensation of American nationals who have incurred losses as a result of the establishment of a Regional Military Training Center in Honduras ("RMTC"). The purpose of this letter is to express our reservations as to the necessity for the proposed amendment, assign to the General Accounting Office.

According to the draft furnished to us, the proposed amendment would authorize the Comptroller General to "receive investigate, review, settle, and certify for payment claims against the United States" for all losses (including consequential losses) incurred by nationals of the United States as a result of the establishment or operation of the RMTC in Honduras. Upon receipt of a claim, we would be required to determine, within 45 days, (1) whether there had been a loss, (2) whether the loss was incurred as a result of the establishment or operation of the RMTC, and (3) if so the amount of the loss. We would then certify the validity of the claim and the amount to be paid to the Secretary of Defense, who would make payment form Defense Department appropriations.

The RMTC, a security assistance-fund project, was establish in mid-1983 to provide military training (by U.S. Green Beret personnel) to Honduras and Salvadoran soldiers. Although the U.S. Department of Defense has been extensively involved in the design, construction, and operation of the project, the Department has apparently taken the position that the RMTC is a Honduran, and not an American, facility. The facility, near Trujillo, Honduras, is situated on a tract of land owned (through several Honduran and Puerto Rican corporations) by Temistocles Ramirez de Arleen, a United States citizen. Mr Ramirez has asserted that establishment and operation of the RMTC on his property has been without proper authority or compensation (either by the U.S. or Honduran Governments); it is this specific claim that the proposed amendment apparently has been designed to resolve.

We express no opinion here as to the merits of Mr. Ramirez's claim, although his allegations appear substantial enough to warrant consideration in an appropriate adjudicative forum. Well-established administrative and judicial mechanisms however, are already available to resolve the matter. Consequently, it is our view that creation of additional settlement authority, as proposed in the amendment, is unnecessary.

The Congress has established, through the Military Claims Act, 10 U.S.C. Sec. 2731 et seq., administrative claims settlement authority within the Department of Defense for any claim against the United States for damage to, or loss of, real or personal property caused by noncombat activities of the armed forces. 10 U.S.C. Sec. 2734 (a) (1)-(2). Similar authority exists under the Foreign Claims Act for damage to, or loss of, property of an "inhabitant of a foreign country" In either case, the Department is given authority to settle the full amount of such a claim, although it may make payment of only $25, 000 or less; recommended payment of any amount in excess of $25, 00 may be paid upon certification by the Comptroller General, from the permanent judgement appropriation. 31 U.S.C. Sec. 1304(a). The Department's settlement authority to DOD, the broad settlement powers of this Office do not ordinarily apply to such matters. 62 Comp.Gen. 280 (1983).

We recognize that Mr. Ramirez may be hesitant to pursue existing administrative remedies with the Defense Department in light of statements by officials of that department that his claim should be against the Government of Honduras, rather than against the United States. We believe, however, that settlement authority within GAO could more effectively remedy Mr. Ramirez's concerns. One possibility, for example would be to permit the claimant to utilize existing claims settlement authority within DOD, but specifically require DOD to consider, solely for purposes of settlement, the RMTC to be an American facility.[1]

Apart from his administrative remedies with DOD, Mr. Ramirez may institute a Claims Court action against the United Stated Government for monetary relief for a Fifth Amendment taking without just compensation under the Tucker Act, 28 U.C.S Sec....

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