On Tuesday, a Pentagon spokesperson stated that the "accounting error" discovered by defence officials last month is more significant than initially assumed. Estimated to be valued at $3 billion, the "error" has now been revealed to be worth a staggering $6.2 billion. It has resulted in a substantial surplus that will be used to provide additional military aid for Ukraine.
As per Reuters, the United States mistakenly overvalued weapons from their stocks that were transported to Ukraine, according to a Pentagon official. The real value was found to be lesser than estimated. The Pentagon updated the valuation on Tuesday to reflect the correct value.
The Pentagon's deputy press secretary, Sabrina Singh, revealed that "inconsistencies in equipment valuation for Ukraine" surfaced while checking the department's compliance with the presidential drawdown authority. Services overestimated the equipment's value by using replacement costs instead of net book value, as mentioned in the Pentagon report.
As per Reuters, the United States mistakenly overvalued weapons from their stocks that were transported to Ukraine, according to a Pentagon official. The real value was found to be lesser than estimated. The Pentagon updated the valuation on Tuesday to reflect the correct value.
The Pentagon's deputy press secretary, Sabrina Singh, revealed that "inconsistencies in equipment valuation for Ukraine" surfaced while checking the department's compliance with the presidential drawdown authority. Services overestimated the equipment's value by using replacement costs instead of net book value, as mentioned in the Pentagon report.
The additional $6.2 billion, comprising $3.6 billion and $2.6 billion for 2023 and 2022 respectively, will enable the Biden administration to authorize more aid packages for the ongoing fiscal year. With this additional allocation, Congress may not need to be involved in the decision process.
National security adviser Jake Sullivan defended the error and told CNN that it was "not a waste" shortly after it was found last month.
Sullivan told CNN's Jake Tapper, "Well, one thing I just wanna make clear, that is not money that just went out the door and disappeared, that is not a waste of that $3 billion." "It's just a count of how much military hardware we've given them,"
"And the Pentagon was calculating it based on the replacement cost of the equipment rather than just the original cost of the item. It turns out that we have an extra $3 billion that we can spend to give Ukraine even more weapons once you make that adjustment, he continued.
Although the packages will continue, the White House has stated that it will not ask Congress for additional funding for Ukraine during the remaining fiscal year.
National security adviser Jake Sullivan defended the error and told CNN that it was "not a waste" shortly after it was found last month.
Sullivan told CNN's Jake Tapper, "Well, one thing I just wanna make clear, that is not money that just went out the door and disappeared, that is not a waste of that $3 billion." "It's just a count of how much military hardware we've given them,"
"And the Pentagon was calculating it based on the replacement cost of the equipment rather than just the original cost of the item. It turns out that we have an extra $3 billion that we can spend to give Ukraine even more weapons once you make that adjustment, he continued.
Although the packages will continue, the White House has stated that it will not ask Congress for additional funding for Ukraine during the remaining fiscal year.
