Many of the 14,000 VA employees with credit cards, who work at
headquarters in Wa****ngton and at medical centers around the nation,
also spent tens of thousands of dollars at Wyndham hotels in places
such as San Diego, Orlando, Fla., and on the riverfront in Little
Rock, Ark.
One-time charges ranged up to $8,000.
On at least six occasions, employees based at VA headquarters made
credit card charges at Las Vegas casino hotels totaling $26,198.
.......................................................................................................
In the coming weeks, auditors at the Government Accountability Office
and the VA inspector general's office are to issue re****ts on purchase
card use and spending controls at the VA and other agencies.
The re****ts are expected to show lingering problems at the VA, which
auditors cited in 2004 for lax spending controls that wasted up to
$1.1 million.
...................................................................................................
Penalties for misuse of government credit cards range from suspension
of the credit card to a reprimand and disciplinary action.
Employees may be criminally prosecuted for fraud.
More serious cases in recent years involved purchases of computers,
televisions, DVD players and other items that were then sold to
friends or kept for personal use.
.........................................................................................
Mitchell, D-Ariz., said he feared there may be "a growing culture of
wasteful spending at the VA."
He noted that former VA Secretary Jim Nicholson had awarded more than
$3.8 million in bonus payments to senior officials despite their roles
in crafting a flawed budget that fell $1 billion short.
"It seems irresponsible that while our veterans are waiting months for
doctor's appointments, the VA is spending thousands of dollars at Las
Vegas casino hotels and high-end retail shops instead of seeking out
more affordable or cost-free alternatives," Mitchell said.
..................................................................................................
In the past, purchase cards have been improperly used to pay for
prostitutes, gambling activity and even breast implants.
After Hurricane Katrina in 2005, the GAO estimated that 45 percent of
Homeland Security purchase card spending during a six-month period was
improper and included iPods, designer rain jackets and beer-making
equipment.
The credit-card bills are directly payable by Uncle Sam.
In 2004, the GAO faulted the VA for at least $300,000 in questionable
charges, citing 3,348 movie gift certificates totaling over $30,000
that lacked do***entation.
Echoing similar concerns by the department's inspector general,
investigators urged greater use of volume discounts and flagged
several high-end retailers as questionable vendors that would require
detailed paperwork to justify.
Among the other areas investigators say raise "red flags":
_Movie expenses. VA employees in 2007 made 68 charges totaling roughly
$21,000 at Regal Cinemas. In light of previous questionable purchases
of movie tickets, investigators say they will review the transactions
case by case to see if the 2007 purchases are sup****ted by the proper
paperwork.
_Charges of $227.50 for harbor cruises in Baltimore and seven expenses
totaling more than $6,603 at various Macy's locations. Such vendors
were cited by the GAO in 2004 as questionable by virtue of the goods
they typically provided and would need full do***entation by VA
employees to justify.
In response, the VA said it often pays for movies or harbor cruises as
part of outpatient recreational therapy it provides for patients with
schizophrenia and other problems.
The VA did not immediately say whether all the required paperwork was
submitted.
"I'm very concerned about frivolous, wasteful spending at the VA,"
said Paul Sullivan, executive director of Veterans for Common Sense.
"With hundreds of thousands of veterans homeless, VA employees don't
need to be staying at ritzy-glitzy high-priced hotels, possibly
gambling with taxpayers' money."
From The Associated Press, 4/6/08:
http://www.newsday.com/business/nationworld/ats-ap_business10apr06,0,5828578.story
Investigators Review VA Credit Charges
By HOPE YEN | Associated Press Writer
WA****NGTON -
Veterans Affairs employees last year racked up hundreds of thousands
of dollars in government credit-card bills at casino and luxury
hotels, movie theaters and high-end retailers such as Sharper Image
and Franklin Covey -- and government auditors are investigating,
citing past spending abuses.
All told, VA staff charged $2.6 billion to their government credit
cards.
________________________________________________
Harry
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