Official: VA Wastes At Least $5 Billion A Year On Illegal Drug Purchases

ADVANCE FOR USE THURSDAY, APRIL 9, 2014 AND THEREAFTER - In this April 2, 2015 photo is the main entrance to the William S. Middleton Memorial Veterans Hospital in Madison, Wis. In an analysis of six months of appoin... ADVANCE FOR USE THURSDAY, APRIL 9, 2014 AND THEREAFTER - In this April 2, 2015 photo is the main entrance to the William S. Middleton Memorial Veterans Hospital in Madison, Wis. In an analysis of six months of appointment data at 940 VA hospitals and clinics nationwide from September 2014 to February 2015, Wisconsin's 19 Veterans Affairs medical facilities did well as a group. Most reported relatively few delayed appointments, compared to VA facilities in other parts of the country. But the VA hospitals in Milwaukee and Madison fared slightly worse the average. (AP Photo/State Journal, John Hart) MORE LESS

WASHINGTON (AP) — A senior official at the Department of Veterans Affairs says the agency is improperly spending at least $5 billion a year for medical care and supplies that are being purchased outside of required practices for competitive bidding and written contracts.

Jan Frye, deputy assistant secretary for acquisition and logistics, says “gross mismanagement” by senior agency leaders has wasted billions of dollars and made a “mockery” of federal laws regarding purchasing of goods and services.

Frye tells a House subcommittee Thursday billions of dollars in illegal purchases have been made for pharmaceutical drugs and medical supplies, putting veterans at risk and exposing the agency to widespread “fraud, waste and abuse.”

Republican Rep. Mike Coffman of Colorado, chairman of a House Veterans Affairs oversight panel, is calling the allegations “truly staggering.”

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