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UPDATE: EDITORIAL CALLS FORMER VA SECRETARY

PRINCIPI'S DEALINGS "A SERIOUS CONFLICT" --

"The VA-QTC case is so blatant that enough is enough.

Taxpayers are tired of filling the pockets of bureaucrats."

Former VA Secretary Anthony J. Principi
 

For the original story about this incident, click here...
http://www.vawatchdog.org/08/nf08/nfMAR08/nf033008-1.htm

For more about Principi's firm, QTC, use the VA Watchdog search engine...click here...
http://www.yourvabenefits.org/sessearch.php?q=qtc&op=and

Today's story here... http://www.contracostatimes.com/opinion/ci_8772141

Story below:

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A serious conflict

Editorial

Anthony Principi apparently had a good thing going. He held a high spot in the U.S. government as secretary of Veterans Affairs, while running a company that potentially benefits an agency like the VA. If you think something else is rotten in Washington, D.C., you should see an audit that was recently released.

The audit illustrated where Principi engineered contracts between the VA and his company, QTC Management Inc. The company, based in Diamond Bar, is the largest private provider of government-outsourced occupational health, injury and disability examination services in the nation, and hooking up with the VA was definitely good for business.

Principi was president of QTC when he was appointed by President Bush in 2001 — a perfect marriage for gross conflict of interest.

QTC, according to the audit, overcharged the VA $6 million in a contract to conduct physical evaluations on veterans applying for disability benefits. In fact, according to the audit, the VA wanted to amend the contract and charge higher rates than authorized, and there's a good chance the VA is still paying too much under the contract.

QTC was paid $267 million by the VA from May 1, 2003 through April 30, 2007. Principi stepped away from the VA in 2005. The company is still under contract with the agency until April 2009, but he's a real kicker. The agency wants to extend the contract because of good performance reviews. The VA is not serious, is it?

This is only one example. The Los Angeles Times reported in 2006 that Principi benefited from a series of contract awards and revisions to contracts by the VA.

A congressional-mandated review of QTC showed costs of the contract were higher than expected with less than anticipated savings in return. But, did the VA follow up the review? Of course not.

State and federal governments wonder why people don't trust bureaucracy; here's one, big golden example. Allowing the rubber-stamping of millions of dollars through a contract between a government agency and a company — and the agency's official is also president of that company — is mind-boggling.

This shows how little oversight takes place when government contracts are signed.

The audit has caused QTC to repay about $3 million, but the company disputes it has to repay another $3 million. Yet if there's a dispute, why did QTC pay any money back?

What happens to QTC is not as big an issue as to how we must address the little or poor government oversight of the contracts it awards.

The VA-QTC case is so blatant that enough is enough. Taxpayers are tired of filling the pockets of bureaucrats. Let's get what we demand — honest contracts for honest work.

-------------------------

posted by Larry Scott
Founder and Editor
VA Watchdog dot Org

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