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Thursday, December 29, 2005

$68 Million in Army Parts Shipments Unaccounted For

The Army cannot account for $68 million in parts and tools shipped to contractors for repairs in 2004 because it does not demand receipts, congressional auditors said yesterday. "Although the [Defense Department] policy requires the military services to confirm receipt of all assets shipped to contractors, the Army is not consistently recording shipment receipts in its inventory management systems," the Government Accountability Office said in a 34-page report.

In earlier audits, the GAO found a similar lack of basic accounting oversight with Navy and Air Force parts and tool shipments.

Each year, the Army ships thousands of items, ranging from small tools to turbine engines, to private contractors for repair or alterations. Looking at data from two inventory control points, the GAO said 15 percent -- or $68 million -- of the unclassified shipments they analyzed "could not be confirmed as being received."

The GAO said an additional $481.7 million in unclassified items shipped for repair -- about 42 percent -- could not be reconciled with shipping records. Discrepancies were also found in records for 37 percent, or about $8.1 million in shipments, of classified parts and tools.

New Palestinian Cabinet Without Militants Is Urged

The United States and three international supporters of the Middle East peace process said yesterday that the next Palestinian cabinet should not include members of the Islamic Resistance Movement, or Hamas, or other militant groups committed to violence.

A statement by the four parties, known as the Quartet, did not name Hamas, but said a future Palestinian cabinet "should include no member who has not committed to the principles of Israel's right to exist in peace and security and an unequivocal end to violence and terrorism."

The four, which helped draft a Middle East peace plan known as the road map, include the United States, the United Nations, the European Union and Russia.

Hamas is participating in parliamentary elections for the first time, and its popularity among Palestinians has grown considerably. Opinion polls in the West Bank and Gaza show it is ahead of Palestinian leader Mahmoud Abbas's ruling Fatah party before the Jan. 25 election.

Once-Monthly Alcoholism Drug Wins Early Approval

U.S. health officials have granted conditional approval for Alkermes Inc.'s once-a-month drug to treat alcoholism in adults, when used along with counseling, the company said.

The drug, called Vivitrex, is an injectable form of naltrexone administered monthly to help ward off a craving for alcohol and should be available in the second quarter of 2006, the company said.

Alkermes shares rose as much as 7 percent in after-hours trading after the news.

Before final approval to sell the drug, Alkermes said it must still meet several conditions set by the Food and Drug Administration, including providing the agency with additional preclinical data.

-- From News Services


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