WASHINGTON – In a video teleconference to Department of Veterans Affairs (VA) employees today, Secretary of Veterans Affairs Anthony J. Principi announced a series of management actions in the aftermath of criminal charges being filed against one current and two former Atlanta VA employees for allegedly being part of a complex, multi-million dollar scheme to defraud VA between July 1996 and August 2001.
“I am shocked and appalled by the nature of the crimes that some of our number are alleged to have committed. Because of our mission of service to the men and women who defend our liberty, every VA employee has a special obligation to meet the highest standards of diligence and integrity,” said Principi.
“When I accepted responsibility for leading the Department of Veterans Affairs, I also accepted responsibility for ensuring that we are all accountable for providing the best possible service to America’s veterans and for our stewardship of the resources entrusted to us by the American people. The President, the Congress, America’s veterans and the American people have a right to expect all of us to meet the highest standards and to hold us accountable if we do not,” he said.
“I know in my heart the vast majority of VA employees are honest and steadfast in their dedication to our mission,” Principi added. “Over the two decades I have been involved in veterans’ issues, I have learned that our employees are among the most dedicated and hard working people in government. However, when people betray and violate the sacred trust bestowed to government employees, they must be dealt with swiftly and severely.”
While not aware of any other instances of fraud within the Department, Principi announced a series of actions designed to “ensure that VA’s systemic weaknesses are identified and corrected.”
He directed VA’s Chief Information Officer to identify information technology-based safeguards that can be implemented on a near-term basis to detect any potential problems in the appropriate authorization of compensation and/or pension payments.
Additionally, Principi directed VA’s Inspector General to conduct an immediate and comprehensive audit to determine whether there are additional potential instances of fraud or manipulations of the compensation and pension system. This investigation will not disrupt or delay VA’s ongoing cooperation with the Atlanta investigation.
“Accountability is an important part of leadership,” said Principi. “A captain is responsible for the safety of the ship. All VA leaders are responsible for the integrity of the programs entrusted to them. We must be held accountable and enforce accountability, or we will continue to run aground and place our programs and our credibility at risk.”
Principi announced the following personnel actions:
· VA’s Under Secretary for Benefits, Joseph Thompson, tendered his resignation and Principi recommended to the President that the resignation be accepted. The Under Secretary for Benefits directs the Veterans Benefits Administration (VBA) through regional offices in every state, the District of Columbia, Puerto Rico and the Philippines and has responsibility for the administration of benefits provided by VA to veterans and dependents, including education, home loan guaranty, compensation, pension, vocational rehabilitation and life insurance. Thompson was nominated by President Clinton and confirmed by the Senate on November 5, 1997.
· Principi recommended to the President that Guy H. McMichael III be named as Acting Under Secretary until the President nominates and the Senate confirms the next Under Secretary. The process for recommending candidates for the next
Under Secretary was launched July 17. McMichael has served as the Chairman and Chief Administrative Judge of VA’s Board of Contract Appeals since February 1990. McMichael has also served as VA's General Counsel (in the late 70's), as acting Chief of Staff (in 2000) and as acting Chief Information Officer (in 2001).
· Deputy Under Secretary for Operations Patrick Nappi offered, and Principi accepted, his resignation from his current position. As second in charge at VBA, the Deputy Under Secretary is responsible for the activities of VBA's field operations, Office of Human Resources, and the Office of Employee Development and Training. Nappi was named as Deputy Under Secretary in December 1997.
· Principi temporarily reassigned both the Director and Assistant Director of the Atlanta Regional Office pending the outcome of the Department of Justice prosecution and the VA Inspector General investigation and audit. Neither Courtney nor his assistant director are subjects of the U.S. attorney’s criminal investigation. These steps are being taken to allow a VA internal investigation to determine the degree to which they share in the management shortcomings that failed to prevent or detect this situation. At this point, their reassignments are without prejudice to their status as employees in good standing with VA.
