VA inspectors reject blame for delayed disciplining of Phoenix executives

• OIG and FBI criminal investigation was completed before July
• Email from Inspector General's Office says there is no pending case

For months, officials at the Department of Veterans Affairs have claimed they were stymied in trying to hold top Phoenix VA officials accountable because of an ongoing criminal investigation.

But an email this week from the department's Inspector General's Office says that excuse is bunk: The OIG and FBI criminal investigation of Phoenix officials was completed, referred to federal prosecutors and rejected over the summer. There is no pending case.

The controversy centers on Lance Robinson, deputy director of the Phoenix VA Health Care System, and Brad Curry, chief of Administrative Services. Those senior executives were placed on administrative leave in May 2014 after inspectors verified delayed patient care, falsified wait-time data and whistleblower retaliation at the Carl T. Hayden VA Medical Center on Indian School Road. Hospital Director Sharon Helman, who also was suspended at the time, has since been fired.

The fact that Robinson and Curry remain on leave – collecting more than $400,000 in pay and benefits for more than 19 months – drew anger and criticism in the past week from key lawmakers, including Sen. John McCain, R-Ariz., and Rep. Jeff Miller, R-Fla., chairman of the House Committee on Veterans' Affairs.

During a Senate Committee on Veterans' Affairs field hearing in Gilbert this week , Undersecretary David Shulkin repeated the claim that disciplinary efforts have been thwarted by "our inability to interview witnesses who have not been cleared by the U.S. Attorney's Office."

'Not much has changed' at Phoenix VA, doctor testifies at Senate panel's hearing

That comment prompted the House committee staff to ask the VA Office of Inspector General for verification. In an emailed response, OIG Congressional Relations Specialist Megan VanLandingham wrote that statements by Shulkin and other VA officials "are not accurate."

VanLandingham's missive, obtained by The Arizona Republic, says the OIG notified the VA before July that the criminal investigation of Phoenix VA employees was completed and the U.S. Attorney's Office decided not to press charges.

Cosme Lopez, a U.S. Attorney's Office spokesman, declined to verify the case was rejected. Lopez said Arizona's top federal prosecutor, John Leonardo, does not divulge how an investigation has been resolved or any other information on criminal matters unless a conviction is secured.

The email from VanLandingham notes that Helman was fired while the VA criminal investigation was underway last year. It says the VA twice interviewed Curry earlier this year, and took part in framing questions for Robinson's interview by inspectors. It also says the OIG provided the VA with all investigative materials, for potential use in the disciplinary probe.

"Given these facts," the email says, "we don't understand VA's assertion that they have been unable to investigate and hold these employees accountable ..."

Jessica Jacobsen, a VA spokeswoman, did not provide a response late Wednesday.

Earlier in the day, The Republic submitted a list of questions to VA headquarters seeking details of how the U.S. Attorney's Office prevented disciplinary proceedings. Jacobsen did not address those questions, but provided a VA statement that says "there has been no recommendation given or decision made that VAMC leaders (in) Phoenix should not be disciplined for whistleblower retaliation."

The statement notes there have been lengthy criminal inquiries and said the VA is still "reviewing the voluminous evidence collected through those investigations and will impose appropriate discipline based on all substantiated misconduct, including but not limited to whistleblower retaliation."

VA Deputy Secretary Sloan Gibson was grilled about the delayed personnel actions last week during a hearing of the House Committee on Veterans' Affairs. He acknowledged the process had gone on too long, adding, "... we can’t let issues languish unresolved in protracted IG or Department of Justice investigations for months and years. Our past practice has been to wait for these investigations to be complete. We’re done waiting."

House committee blasts VA leadership for inaction in Phoenix

The congressional ire over accountability was exacerbated this week by revelations that internal VA probes long ago determined that several Phoenix administrators retaliated against whistleblowers who first exposed the department's crisis in care and management. One investigation found that Robinson had transferred hospital spokeswoman Paula Pedene to a basement after she reported administrative misconduct. Another concluded that Chief of Staff Darren Deering reassigned Dr. Katherine Mitchell, an emergency-room supervisor, after she raised concerns about patient safety and delayed care. Both employees filed complaints with the Office of Special Counsel and won settlements from the VA.

Deering, a staunch defender of the hospital administration, had been scheduled to testify during Monday's Senate committee hearing, but was canceled as a witness after the findings against him were revealed. He did not respond to a request for comment submitted via a hospital spokeswoman.