Rounds Calls on VA Secretary to Hold Benefits Bureaucrats Accountable for ‘Shockingly Unethical’ Misuse of Funds

“Now more than ever, VA needs leaders committed to changing the culture and old way of doing business.”

WASHINGTON – U.S. Senator Mike Rounds (R-S.D.), along with other members of the Senate Veterans’ Affairs Committee, today called on the Department of Veterans Affairs (VA) Secretary Robert McDonald to hold accountable senior bureaucrats who participated in a “shockingly unethical” scheme at the Veterans Benefits Administration to increase pay for high-level employees by transferring them to other positions within the administration.

According to a VA Office of Inspector General investigation requested by the committee, the Veterans Benefits Administration, or VBA, spent nearly $2 million over the past three years to transfer 22 VBA employees to different positions, using the transfers as justification for increasing their pay and offering exorbitant relocation incentives. In one case, a VBA bureaucrat used her authority to create a position for herself that required less responsibilities and the VA paid $274,000 in relocation expenses in addition to retaining her previous salary.

Under Secretary for Benefits Allison Hickey was aware of the scheme and allowed it to continue under her watch.

In a letter to McDonald, the committee members called on the secretary to hold all the senior-level bureaucrats involved accountable, noting that “there is no indication that these transfers were in any way based on merit or intended to serve the best interests of veterans.”

“Now more than ever, VA needs leaders committed to changing the culture and old way of doing business,” wrote the senators. “During your confirmation hearing, you told this Committee that ‘those employees that have violated the trust of the Department and of veterans must, and will be, held accountable.’ More recently, at a field hearing in Gainesville, Georgia, you testified that you have the tools you need to do just that.  So, we call on you now to live up to your commitment and to hold accountable those who orchestrated, participated in, or benefitted from the unethical practices outlined in this report, including but not limited to the Under Secretary for Benefits.”

In addition, the committee members asked that the secretary review all pending relocation efforts for senior level employees and provide a plan for reforming the approval and reimbursement of relocation expenses at the VA.

The letter was signed by U.S Senators Johnny Isakson (R-Ga.) and Richard Blumenthal (D-Conn.), chairman and ranking member of the Senate Veterans’ Affairs Committee, respectively, Dean Heller (R-Nev.), and committee members Mike Rounds (R-S.D.), Jerry Moran, (R-Kan.), John Boozman, (R-Ark.), Bill Cassidy, (R-La.), Thom Tillis, (R-N.C.), Dan Sullivan, (R-Alaska), Patty Murray, (D-Wash.), Sherrod Brown, (D-Ohio), Jon Tester, (D-Mont.), and Mazie Hirono, (D-Hawaii).

Full text of the letter appears below. A PDF of the signed letter is available here.

The Honorable Robert A. McDonald
Secretary of Veterans Affairs|
U.S. Department of Veterans Affairs
810 Vermont Ave., N.W.
Washington, D.C. 20420

Dear Secretary McDonald:

As Members of the Senate Committee on Veterans’ Affairs, we ask that you take urgent and immediate actions regarding the shockingly unethical practices described in the September 28, 2015, report from the Department of Veterans Affairs (VA) Office of Inspector General, entitled “Administrative Investigation: Inappropriate Use of Position and Misuse of Relocation Program and Incentives” at the Veterans Benefits Administration (VBA).  Our Committee confirmed your nomination to fundamentally overhaul and reform this struggling agency, after VA faced a moment of crisis that resulted from failed leadership and a culture that in some cases led VA leaders and employees to act contrary to their core mission to serve veterans.  But, unfortunately, it is clear from this report that your well-intentioned and meaningful efforts to change the culture at VA have not yet taken hold.

As you are aware, the report outlines an orchestrated scheme – carried out by numerous senior executives at VBA – to skirt salary and bonus limitations for senior VBA leaders by unnecessarily relocating executives and using those moves to justify increases in their pay and relocation benefits.  In fact, VBA spent nearly $2 million on transferring 22 VBA leaders across the country over the past three years and offering generous pay increases and relocation perks to the relocating officials. There is no indication that these transfers were in any way based on merit or intended to serve the best interests of veterans. In fact, one VBA official confirmed that this was simply an effort to “get around pay freezes and bans on performance bonuses” for senior VBA leaders and the Under Secretary for Benefits, Allison Hickey, admitted that this scheme was an effort to make the pay of these VBA officials “more even” or to achieve “level-setting pay.”

In addition to that broader scheme, the Inspector General found that Ms. Diana Rubens used her position of authority within VBA to create a vacancy in Philadelphia that she later volunteered to fill.  This new position brought much less responsibility than her prior position, yet she retained the same Senior Executive Service pay, and VA paid a total of $274,000 for relocation expenses.  The Inspector General also found that Ms. Kimberly Graves created a vacancy in St. Paul – in part by forcing the transfer of the VA regional office Director to another city – so that she could then fill that vacancy.  This position change also resulted in fewer responsibilities, but she too maintained the same level of pay.  The Inspector General concluded that these officials inappropriately used their positions of authority for personal and financial benefit.  In addition, it is clear from the report that Ms. Hickey and her leadership team were aware of, assisted with, and authorized these actions.

Now more than ever, VA needs leaders committed to changing the culture and old way of doing business.  During your confirmation hearing, you told this Committee that “those employees that have violated the trust of the Department and of veterans must, and will be, held accountable.”  More recently, at a field hearing in Gainesville, Georgia, you testified that you have the tools you need to do just that.  So, we call on you now to live up to your commitment and to hold accountable those who orchestrated, participated in, or benefitted from the unethical practices outlined in this report, including but not limited to the Under Secretary for Benefits.

Moreover, we ask that you:

(1)   review all pending relocation efforts for Senior Executive Service employees to ensure staffing and salary adjustments would be in the best interests of veterans rather than VA officials

(2)   provide documentation of any actions you are taking to stop the practice of inappropriate relocations

(3)   provide a plan for reforming the approval and reimbursement of relocation expenses, including reforms to the Appraised Value Option program

(4)   identify any Office of Personnel Management requirements that might restrict your ability to lower compensation for Senior Executive Service employees who are transferred to match the requirements of their position and

(5)   update this Committee on steps you are taking to fill vacant and “acting” Senior Executive positions.

Given the seriousness of the issues identified in the Inspector General’s report, we would ask that you provide a response to this letter no later than October 23, 2015.  We thank you for your dedicated service on behalf of veterans across the nation and look forward to continuing to work with you to restore the integrity of the institution created to meet their needs.

Sincerely,

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If you haven’t reached your BS quota today, it soon will be overflowing after you’ve read the latest fundraising appeal from Chad Haber, who is apparently trying to raise $100,000 for Annette’s appeal to the Supreme Court.

Annette Bosworth Legal Defense Fund Letter 9/15

“The smell of danger lurked in the air from the first day of jury selection. The extremes to which the State went to collude against my wife left me speechless…. But the state had what they wanted– a jury trial in the backyard of the corrupt Attorney General, Marty Jackley as well as the home town for Senator Mike Rounds.”

The letter is so overly dramatic, I’ve seen less ham at a Catholic funeral!  Seriously. It’s such a ridiculous distortion as well as being full of complete and utter BS, I’m not sure how someone could actually put it on paper.

But, then again, I forget who we’re talking about.

Chad will soon have his own day in court.  And he’ll have an opportunity to figure out which version of the truth the jury will believe.

Sioux Falls city councilor Michelle Erpenbach is often said to be planning to run for Mayor of our state’s largest city. Which makes it quite interesting that she’s planning to propose an ordinance as intrusive as banning cell phone use in cars:

A proposal to ban handheld cellphones while driving faces a bumpy road at city hall.

Sioux Falls City Councilor Michelle Erpenbach plans to introduce a measure Tuesday to prohibit the use of any handheld electronic devices, including cellphones, while operating a vehicle on Sioux Falls streets.

Read it all here.

I’m kind of surprised that someone would propose something so intrusive, especially someone who has been mentioned as being a mayoral hopeful. Huether is bad enough, but this puts her firmly to his left.

The thought that comes to my mind is that if she’s going to be this far to the left on what we can do in our cars, how far off is she from proposing limitations on personal ownership of guns within Sioux Falls City limits?

Because it’s pretty obvious that restricting personal rights are not a problem for her.

From Today’s KCCR – AG Marty Jackley reminds residents that he’s not going to turn a blind eye to the proposed Flandreau pot lounge, and that any non-tribal members using pot there will be arrested and subject to prosecution:

Regardless, the tribe has begun growing marijuana on the reservation and is looking at a New Years Eve opening for their resort. However, Jackley says, anyone breaking state law will be arrested.

Jackley says tribal members would be within their right to use marijuana on their own tribal lands, however non-Indians would not.

 Should there be probable cause; Jackley says state law enforcement officials have the right to enter the reservation and arrest individuals who are committing a crime. Search warrants would be needed.

Read it all here.

Over at the official facebook page for the South Dakotans Against Prohibition – the ballot measure being promoted to decriminalize small amounts of marijuana – there seem to be some mixed signals as to whether the ballot measure is throwing in the towel for this election.

As they seem to be communicating, the backers of the measure seem to have no more to give:

Ballot measures are not for the faint of heart, and this might be the first indication that we may not have the full 13 measures on the ballot that have been or are currently circulating.

In South Dakota, It’s “Native American Day”
By Sen. John Thune

In 1990, South Dakota Governor George Mickelson sought to reconcile some of the challenges faced between the Native and non-Native American citizens in South Dakota. One of his first steps toward this reconciliation was to change the federally recognized Columbus Day holiday to Native American Day in South Dakota. In the 25 years since the change was made, South Dakota has recognized and celebrated Native American Day as a day of tribute to the discovery of this great land and also to reflect on the rich traditions and culture of our state’s Lakota, Dakota, and Nakota people.

Celebrating Native American Day reminds us that Christopher Columbus not only encountered a new land, but also a new population of people living on this land – strong people with their own language and way of life. Our state and nation have learned and benefited much from our tribal citizens. For example, Native Americans introduced foods that we still enjoy today, like popcorn, corn, wild rice, pumpkins, jerky, and turnips, just to name a few.

Powwows, like the He Sapa Wacipi Na’Oskate, or Black Hills Powwow, in Rapid City, are one of the best ways people can learn about and experience the talents, crafts, and foods our nation’s first cultures have to offer. Being able to see traditions and values handed down from generation to generation is truly a humbling and enriching experience.

We need to continue our celebration of this important culture and ensure that citizens throughout South Dakota and the United States are able to experience and understand it firsthand, which is why I introduced the Native American Tourism and Improving Visitor Experience (NATIVE) Act in the Senate. The NATIVE Act will better integrate Native American tourism into federal tourism efforts to expand tourism opportunities for tribal communities to share their culture with travelers. I am pleased that the Senate Committee on Indian Affairs passed this legislation and look forward to its final passage in the Senate.

As South Dakotans recognize Native American Day, we are once again reminded that there is much to celebrate. This is a day to reflect on past, present, and future relationships and learn from those who have given so much to make this country great.

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Support Our Troops
By Senator Mike Rounds

As the United States continues to face grave threats at home and abroad, it is as important as ever to make sure our armed forces have our full support. Between the rise of ISIS and Hezbollah and the alliance between Russia and Bashar al-Assad in Syria, the U.S. military must be prepared to address multiple threats throughout the world. I was pleased that the Senate, with strong bipartisan support, recently passed the final version of the National Defense Authorization Act, commonly referred to as the NDAA. The NDAA will help our military to adequately address these growing threats.

The NDAA is an important reauthorization measure that contains policies to support our wounded warriors, our troops and their families. It sets priorities for national defense and provides our military with the tools needed to combat our enemies around the globe. Also included in this year’s NDAA are provisions to make certain our military maintains its technological edge. And we achieved all this while trimming the Pentagon’s budget and reducing unnecessary bureaucracy so we can focus defense dollars on our troops.

As a member of the Senate Armed Services and Veterans’ Affairs Committees, providing our military and veterans with the tools they need and services they’ve been promised are top priorities of mine. I am pleased that four provisions I offered to the NDAA were included in the final package. These include amendments to help develop the Air Force’s new long-range strike bomber, improve the Pentagon workforce that develops new weapons and help states and local units of government if they are targets of cyber-attacks. The NDAA also included my provision to streamline Tricare services for members of our armed forces, military retirees and their families.

The defense of our country should not be a partisan issue, but unfortunately President Obama has threatened to veto the NDAA when it arrives on his desk for reasons completely unrelated to national defense. Because the President wants to spend more money on agencies such as the IRS and EPA, agencies known to waste our tax dollars, the NDAA – which has passed annually with strong bipartisan support for more than 50 consecutive years – is in jeopardy.  The brave men and women in uniform put themselves in harm’s way to protect our freedoms and keep us safe deserve better. Their mission shouldn’t be held hostage by political theater.

Throughout all the policy discussions and funding debates on Capitol Hill, we must remember and prioritize the men and women who volunteer to take on the great responsibility of defending our homeland. These service members are our family members, our friends and our neighbors. They bravely sacrifice everything so we can continue to go about our lives safely and freely. Adequate support from the federal government is the least we can do to repay them for their service. The NDAA does just that.

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Ensuring Integrity in the IRS Workforce
By Rep. Kristi Noem

It is commonsense:  if someone at your workplace has been fired for falsifying documents or violating a client’s privacy, they probably won’t be rehired.  Unless they work at the IRS, that is.

According to a February 2015 report by the Treasury Inspector General for Tax Administration, the IRS has rehired “hundreds of former employees” who had prior performance or conduct issues at the agency.   Some of these individuals had falsified official forms.  Others had a documented misuse of IRS property.  Still others inappropriately accessed sensitive taxpayer information.  One individual even had a note attached to their personnel file that stated “Do Not Rehire,” and still, they were rehired.

Not surprisingly, about 20 percent of those brought back onboard after misconduct continued to have performance issues after being rehired.

It is a completely irresponsible way to run an agency – let alone an organization that manages sensitive taxpayer data.  But if IRS leadership won’t instill commonsense hiring practices within the agency, I will work to write it into law.

Earlier this month, I introduced the Ensuring Integrity in the IRS Workforce Act.  This legislation strictly prohibits the IRS from rehiring an employee that has been fired for certain forms of misconduct.  It’s as straightforward as that.

Unfortunately, the IRS’s rehiring practices are just one example of poor leadership within the IRS.

This spring, the Treasury Inspector General for Tax Administration revealed another set of findings:  many of the IRS employees who had violated tax law or engaged in misconduct at work were never even fired in the first place.  In fact, more than 60 percent of those who willfully violated tax law kept their jobs.

Moreover, many of these employees went on to receive awards and promotions within the year, including nearly $145,000 in performance bonuses, 900 hours of time-off awards, more than 30 promotions, and four permanent raises.  Taxpayers should never be responsible for giving a performance bonus to an IRS employee who has failed to pay their own taxes.  Period.

It doesn’t stop there, either.  In April of this year, the House Ways and Means Committee, of which I am a member, released a report showing the IRS deliberately diverted funding away from customer service, meaning 16 million fewer taxpayers received IRS assistance this tax filing season.  What’s more, the IRS continued to prioritize spending on employee bonuses and union activity during this time, using up resources that could have helped millions more taxpayers.

And all of this is occurring as the House investigates the agency’s blatant targeting of conservative groups.  It’s unacceptable and frankly, out of control.

Time and again, the IRS’s actions point to a fundamental disrespect of taxpayers and your hard-earned dollars.  The legislation I’ve introduced this month will not solve all the problems that riddle this agency, but it does take a step forward in providing the vigorous oversight the IRS clearly needs.

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Advocating For Reforms To The Endangered Species Act
A column by Gov. Dennis Daugaard:

Last week I had the opportunity to participate in a Western Governors Association trip to Washington, D.C. Along with the governors of Wyoming, North Dakota, Montana and Utah, I visited with federal officials about issues impacting South Dakota and other western states. One of the topics we discussed was the Endangered Species Act.

A recent poll from the Morning Consult indicates that the majority of Americans believe the Endangered Species Act (ESA) needs to be reformed. The poll also found that less than one-third of Americans think the federal government should take the lead on endangered species.

Allowing states to play a more active role in the administration of the ESA just makes sense. In a state like South Dakota where 80 percent of the land is privately owned, it should be standard practice to gather input from landowners early in the process. They know the land better than anyone and endangered species decisions can directly impact their livelihoods. It’s also easier for states to work with landowners once an ESA decision has been made.

Unfortunately, state governments are routinely left out of the conversation when it comes to ESA decisions. Time and time again, we have been impacted by unfounded listings and a lack of implementation at the federal level.

Our state’s experience with the Topeka Shiner listing is a prime example. Habitat and population problems don’t exist in South Dakota for this type of fish; but because those problems persist in other states, the species is listed as endangered in our state. It has been 16 years since the Topeka Shiner was listed, and we are still waiting for the U.S. Fish and Wildlife Service to develop a complete recovery plan for the species. How can we aim for recovery, if we don’t know what is the goal?

Compare that to the Sage Grouse. In 2010, the U.S. Fish and Wildlife Service listed Sage Grouse as “warranted but precluded.” Western states joined with the Department of Interior to implement measures to prevent an endangered listing of the species. States developed their own conservation plans and local governments became involved in the efforts. Just last month, the Department of Interior announced it would not place the bird on the endangered species list.

In South Dakota, we value the goal of improving and maintaining habitat. Rather than viewing states as unnecessary hurdles, I hope the federal government will come to see the states as partners in accomplishing this goal.

-30-

(I believe this is for Sioux Falls. -pp)

Greg Neitzert To Make Announcement For City Council

Tomorrow October 13th, 2015 at 11:00am in the Carnegie Town Hall Overflow Room located at 235 W. 10th Street, I will make an official announcement regarding my candidacy for City Council Northwest District.