Japan’s Board of Audit highlights scope of ‘unsettled’ FMS deals

21 October 2019

Japan's Board of Audit has urged the country's Ministry of Defense (MoD) to engage with the United States over what it says are delays in receiving refunds through the US Foreign Military Sales (FMS) mechanism.

In a paper published by the Board of Audit on 18 October, it said that by the end of 2017 more than 600 cases of procurement - with a total value of JPY141.7 billion (USD1.3 billion) - remained "unsettled", meaning that the Japan MoD's advanced payments on FMS deals had yet to be refunded.

The audit paper added that Japan had yet to receive FMS deliveries worth JPY34.9 billion (USD321 million) featuring 85 contracts.

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