Saudi Arabia Struggles to Pay $13 Million Pentagon Debt Despite Billions in New US Arms Deals

Saudi Arabia's Crown Prince Mohammed bin Salman recently discussed weapons deals worth billions with the US, yet his government still owes $13 million to the Pentagon for aerial refueling operations in Yemen. Despite multiple payment attempts, Saudi Arabia's new financial system has experienced glitches preventing successful transfers, highlighting potential payment challenges for US defense contractors doing business with the kingdom.

Saudi Owes US $13 Million From Years Ago, Internal Glitch Stands In The Way

Saudi Arabia's Crown Prince Mohammed bin Salman visited Washington recently to discuss weapons deals worth billions of dollars with the United States. However, the Saudi air force is still struggling to settle a much smaller debt from previous years.

According to an October 7 report from Defense Logistics Agency director Army Lieutenant General Mark Simerly to congressional committees, Saudi Arabia still owes the Pentagon $13 million out of a $19.7 million bill. This debt stems from US aerial refueling operations supporting Saudi-led coalition airstrikes in Yemen between March 2015 and November 2018.

The issue isn't a matter of Saudi unwillingness to pay. The report indicates that the Royal Saudi Air Force has "subsequently attempted to remit full payment multiple times utilizing its newly implemented financial system," but "each payment attempt was unsuccessful."

Saudi Arabia continues to work on "resolving internal financial system issues to enable successful electronic funds transfer payment," according to the report.

While the $13 million debt seems insignificant compared to the approximately $142 billion in American military equipment that President Donald Trump said bin Salman's government has agreed to purchase during his latest visit, it serves as a cautionary note for US defense manufacturers considering business with the kingdom.

Lieutenant General Simerly stated that the Defense Logistics Agency "will engage and assist the RSAF as necessary until full payment is received."

A spokesperson for Saudi Arabia's embassy in Washington did not respond to requests for comment.

Source: https://www.ndtv.com/world-news/saudi-owes-us-13-million-from-years-ago-internal-glitch-stands-in-the-way-9669479