The Pentagon announced Tuesday that the accounting error revealed last month was significantly more than previously stated and aid provided to Ukraine was overvalued by $6.2 billion rather than $3 billion.
The accounting error includes fiscal years 2022 and 2023 and occurred because “in a significant number of cases,” when the US transferred weaponry, military officials counted the value of replacing the weapon instead of the value of the actual weapon, deputy Pentagon press secretary Sabrina Singh explained at a news briefing.
That process drove up the cost of each new aid package – because new weaponry costs more than old weaponry – and resulted in the false assumption that more of the funding had been used.
“In a significant number of cases, services used replacement costs rather than net book value, thereby overestimating the value of the equipment drawn down from US stocks and provided to Ukraine,” Singh said.
The final calculation of the accounting error is far higher than the Pentagon previously estimated in May, when it first revealed the miscalculation as $3 billion.
“We have confirmed that for FY23, the final calculation is $3.6 billion, and for FY22 it is $2.6 billion, for a combined total of $6.2 billion,” Singh said. “These valuation errors in no way limit or restricted the size of any of our PDAs or impacted the provision of support to Ukraine,” she added.
The extra $6.2 billion is likely to mitigate the need for Congress to pass an additional assistance package before the end of the fiscal year in September.
source cnn.com
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