VA staff spent $2.6b on agency credit cards

Bills at casinos, posh retailers investigated

April 07, 2008|Hope Yen, Associated Press

WASHINGTON - 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.

Through a Freedom of Information Act request, the Associated Press obtained the agency's list of 3.1 million purchases made in the 2007 budget year. The list provides a detailed look into staff spending at the government's second-largest agency.

The agency's employees charged $2.6 billion to their government credit cards last year. By and large, the list reveals few outward signs of questionable spending, with hundreds of purchases at prosthetic, orthopedic, and other medical supply stores.

But there are multiple charges that have caught the eye of government investigators.

At least 13 purchases totaling $8,471 were charged at Sharper Image, a specialty store that sells high-tech electronics and gizmos such as robotic dogs. In addition, 19 charges worth $1,999.56 were made at Franklin Covey, which sells leather totes and planners for corporate executives.

Government reports in 2004 said these two companies, by virtue of the types of products they market, would "more likely be selling unauthorized or personal-use items" to federal employees.

Many of the 14,000 Veterans Affairs employees with credit cards, who work at headquarters in Washington 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 the Veterans Affairs headquarters made credit card charges at Las Vegas casino hotels totaling $26,198.

Matt Smith, spokesman for the agency, said Veterans Affairs was reviewing these and other purchases as part of its routine oversight of employee spending. Many of the purchases at Sharper Image and other stores included clocks for low-vision veterans, humidifiers, air purifiers, alarm devices, and basic planner products, he said.

Smith said all the casino hotel expenditures in 2007 were for conferences and related expenses. He said the spending was justified because Las Vegas is a place where "VA is building a new medical center and an increasing number of veterans are calling home."

"The Department of Veterans Affairs, like many public and private groups, hosts conferences and meetings in Las Vegas due to the ease of participant travel, the capacity of the facilities, and the overall cost associated with hosting a conference," he said.

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