Severance Pay for Greek Local Nationals Employed by the Department of Defense

GAO discussed the issue of severance pay for Greek employees at two closed U.S. military facilities in Greece. GAO noted that: (1) the Department of Defense (DOD) and the Department of State determined that severance-pay provisions did not apply to the closures, since the United States decided to close the two bases; (2) in the future, Congress could prohibit the DOD from using any appropriations for severance pay in specific situations; (3) Congress could also, in such cases, conduct an investigation into the circumstances surrounding particular base closures to determine whether severance payments were warranted; (4) the U.S. failure to make severance payments to countries could harm U.S. strategic and political interests, and result in litigation in long-term labor problems; and (5) Air Force officials estimated that severance and incentive payments would total approximately $7.0 million for Greek nationals employed at the two bases.