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Office of Inspector General |
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| Title: | MARAD’s Cargo-Preference Billing and Payment |
| Date: | May 05, 2004 |
| Type: | Audit |
| FI-2004-057 | |
| Summary: | We issued a final report recommending that MARAD immediately pay $164 million of a $379 million invoice from the U.S. Department of Agriculture’s (USDA) Commodity Credit Corporation for FYs 1994–2000. MARAD is required to reimburse USDA for “excess” ocean-freight costs incurred by food-assistance programs administered by USDA and the U.S. Agency for International Development as a cost of complying with cargo-preference statutes. These laws require shipment on privately owned and operated U.S.-flagged Merchant Marine vessels.
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