21-6-2023 (WASHINGTON) The Pentagon announced on Tuesday that the accounting error it revealed last month was significantly more than previously stated, with aid provided to Ukraine overvalued by $6.2 billion rather than $3 billion. The error occurred because, in many cases, military officials counted the value of replacing the weapon instead of the actual weapon when the US transferred weaponry. This process drove up the cost of each new aid package, resulting in the false assumption that more funding had been used.
Deputy Pentagon press secretary Sabrina Singh explained during a news briefing that “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.” The accounting error covers fiscal years 2022 and 2023.
The final calculation of the accounting error is far higher than the Pentagon’s initial estimate in May, when it first revealed the miscalculation as $3 billion. Singh stated that “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.” She added that “these valuation errors in no way limit or restrict the size of any of our PDAs or impacted the provision of support to Ukraine.”
The extra $6.2 billion could help to mitigate the need for Congress to pass an additional assistance package before the end of the fiscal year in September. The White House told CNN last month that it is not currently planning to ask Congress for new Ukraine funding before the end of the fiscal year, which has pitted administration officials against some lawmakers and congressional staffers who are concerned that the funds could run out by mid-summer.
The first accounting error of $3 billion revealed last month triggered frustration from Republicans on the House Foreign Affairs and Armed Services committees, who believe the mistake reduced the amount of US support that went to Ukraine leading up to the counteroffensive.
House Foreign Affairs Chairman Michael McCaul and House Armed Services Chairman Mike Rogers wrote in a statement last month that “these funds could have been used for extra supplies and weapons for the upcoming counteroffensive, instead of rationing funds to last for the remainder of the fiscal year.”
