The Pentagon has identified an additional $2 billion in overvalued military aid sent to Ukraine, bringing the total misvalued equipment to $8.2 billion, according to a recent Government Accountability Office (GAO) report.
The Department of Defense has struggled with accurate valuation due to ambiguous accounting definitions, using “replacement value” rather than “depreciated value” for military materials.
This miscalculation led to significant discrepancies, allowing for billions more in aid to be dispatched.
The GAO noted that vague definitions in the Foreign Assistance Act and lack of specific guidelines have contributed to these inconsistencies and has recommended that Congress clarify the valuation terms, along with issuing guidance to the Pentagon for better valuation practices.
The Defense Department acknowledged these recommendations and committed to implementing changes.
