El Salvador

Pursuant to a congressional request, GAO reviewed accountability for and controls over U.S. military and economic assistance to El Salvador, to determine: (1) whether any assistance was subject to misuse or diversion; and (2) what accountability and controls are in place. GAO found that: (1) the United States has provided $3.5 billion in economic and military aid to El Salvador since 1980; (2) there was no evidence that U.S. military aid to El Salvador had been diverted or misused since the time that GAO reported on illegal fuel transfers; (3) Salvadoran officials did not emphasize management controls over logistics, due to combat activities; (4) some written guidance was lacking, storage space was inadequate, and inventories and spot checks were not regularly performed; (5) between 1980 and 1989, U.S. economic assistance to El Salvador totalled nearly $2.6 billion, the fourth-largest economic aid program in the world; (6) Salvadoran agencies continue to be affected by serious internal control weaknesses despite the Agency for International Development (AID) mission’s efforts to control funds; and (7) by improving El Salvador’s financial management capability, reductions in the vulnerability of local currency funds could be accomplished.