VA Federal Employees Face Charges for Misuse of Funds
Two senior Veterans Affairs managers face criminal charges after a watchdog group reported that these federal employees gave employees large salaries and relocation reimbursements as an incentive to reward executives.
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In addition to arranging new positions for themselves, the two federal workers kept their higher paying salaries despite the new positions sitting on a lower federal pay scale. Ironically, Rubens moved to her new position in Philadelphia to clean up that VA office following a range of scandals including changing benefit claim dates and retaliation against whistle blowers.
These two women could face criminal charges and their case is at the U.S. Attorney’s office.
Scheme of Increasing Salaries
While the case of fraudulent behavior by federal employees is startling, the Inspector General detailed a bigger scheme that involve increasing salaries for many executives. The report showed that some 22 federal VA employees received promotions to executive positions or relocated over about 3-years. The report that these promotions/relocations were used to justify salary increases. All but 1 of the 22 employees listed received a substantial pay increase following their promotion or relocation.
The Attorney General’s report said “Annual salary increases totaled about $321,000 with relocation expenses totaling about $1.3 million.” In addition, the report further detailed another $140,000 in relocation incentives. In total, federal employees spent some $1.8 million on reassignment.
Jeff Miller, the House Veteran’s Affairs Committee Chairman said that the finding align with recent investigations into the organization.
“It is clear from this report that Undersecretary (Allison) Hickey and others in VA leadership knew they could use fear, intimidation and timely relocation incentives to coerce subordinates to relocate to jobs they didn’t apply for, at the taxpayers’ expense. These VA managers knew what they were doing and it is clear that from day one that VA officials were using the relocation expenses program to enrich themselves.”
The VA Response
The VA responded to the allegations, agreeing with the attorney general. The released the following statement: “As a result of their findings, VA leadership will conduct a 30-day review of all incentive and relocation procedures in the department… The VA will full cooperate with other federal agencies as required as we continue our daily effort…”
Federal employees have come under fire his year as numerous reports have shown that this federal benefits program is riddled with fraud and mismanagement. Reports have included mishandling of healthcare requests, changing the dates on applications, and unaccounted spending of about $6 billion per year, and a shortfall of some $2.6 billion this summer that nearly caused several VA hospitals to shut down.
Republican representative Dan Benishek expressed frustration earlier this year. “Do we have to listen to this repeatedly? Obviously, there are some problems that really need to be fixed. It’s unbelievable that this is happening.” He continued, “It seems to be a new revelation every month about some incompetence.”
The VA is responsible for managing and distributing federal benefits for military veterans. The purpose of the VA is to help veterans receive proper medical care, compensation and insurance coverage.
