The Government Accountability Office has called on the Defense Department to evaluate national security risks associated with foreign investors that have access to emerging technology platforms or in proximity to critical military sites.
GAO said in a report published Tuesday it made the recommendation after it found that the Committee on Foreign Investment in the U.S. may not address such risks because some foreign investments would not lead to foreign control of a U.S.-based company.
DoD should also review its resources to address its increasing workload with regard to its involvement in co-leading investigations of foreign investment transactions as part of CFUIS, according to the report.
GAO said DoD co-led 99 deals between U.S. businesses and foreign acquirers in 2017, a figure that reflects a 57 percent increase in transactions co-led by the department in 2012.
The congressional watchdog recommended that DoD should update its processes and policies to help shed light on some of the national security risks facing the department.
The report showed that the Pentagon’s CFIUS Instruction does not state clearly some of the department’s processes and assessment responsibilities when it comes to determining deals that foreign investors do not voluntarily submit to CFIUS.