A Bronx VA hospital is under a federal investigation after the Department of Veterans Affairs discovered some questionable purchases by the facility that can’t seem to be explained. And this is one mystery the taxpayers want solved.
As of this Monday (June 15), the VA Office of Inspector General is investigating whether Bronx VA hospital employees have abused government-issued purchase cards, or “GPCS,” which authorize purchases under the micro-purchase threshold of $3000. It is not permissible for the government to split purchases in order to avoid exceeding this threshold.
According to a recent memorandum addressed to VA Secretary Robert McDonald by Jan Frye, deputy assistant secretary for the VA, the Bronx facility engaged in this illegal splitting. It spent over $50 million on prosthetic limbs in two years through purchases made at least 2,000 times. Each purchase totaled $2,999 — just one dollar bellow the VA’s $3,000 GPC limit.
According to the Washington Post, which seems to have had the scoop on this story, when Congress learned of this practice, it demanded answers. The VA did not, however, turn over any documentation to authenticate the purchases. Instead, it claimed they were destroyed during Hurricane Sandy.
The House Veterans Affairs Subcommittee on Oversight and Investigations didn’t buy this excuse. Led by Kathleen Rice, a New York Congresswoman, it called for an investigation during a series of hearings concerning spending practices of the VA.
“The damage caused by Superstorm Sandy was devastating and far-reaching, but the claim that all of these documents were destroyed strikes me as all too convenient and must be substantiated,” Rice said in a statement. “We need to know exactly what happened to the documents, how and why this money was spent without written contracts, and who is accountable.”
Bronx is not alone here. This case was one of several acquisition practices Frye described in his memo. According to the memorandum, the VA spends billions of dollars each year on medical supplies and services in violation of federal procurement laws. Frye’s memorandum lists not only VA facilities, but the names of VA officials.
In the months to come, expect other shakedowns like this one. Who’s next?
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