Administrative Investigation, Appearance of a Conflict of Interest, Fayetteville VA Medical Center, Fayetteville, NC

Report Information

Issue Date
Report Number
12-03002-102
VISN
State
North Carolina
District
VA Office
Veterans Health Administration (VHA)
Report Author
Office of Investigations
Report Type
Administrative Investigation
Recommendations
4
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
A VHA Project Manager improperly participated as a member of a survey team, creating an appearance of a conflict of interest, when she did not recuse herself from the site selection process for a new healthcare center after realizing that properties to be reviewed were owned by her extended family members. As a VA employee and Professional Engineer she knew that her participation may be a conflict of interest, or perceived as one, and that she should have recused herself from the site selection process as soon as she realized a family connection to the properties. This process ultimately resulted in VA purchasing about 35 acres of land from her extended family member for about $4.25 million. Further, VHA senior officials failed to properly discharge the duties of their positions when they individually learned of the possible conflict of interest and took insufficient action, and there were many discrepancies found within the records associated with the solicitation and purchase of this particular property.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommend that the Deputy Under Secretary for Health for Operations and Management (DUSHOM) confer with the Offices of Human Resources (OHR) and General Counsel (OGC) to determine the appropriate administrative action to take, if any, against the Project Manager.
No. 2
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommend that the DUSHOM confer with OHR and OGC to determine the appropriate administrative action to take, if any, against Mr. Hoffman, Ms. Goolsby, Mr. Galkowski, and Ms. Kaplan.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommend that the DUSHOM ensure Mr. Hoffman, Ms. Goolsby, Mr. Galkowski, Ms. Kaplan, and the Project Manager take refresher ethics training directly related to the matters described in this report.
No. 4
Closed and Implemented Recommendation Image, Checkmark
to General Counsel (OGC)
We recommend that OGC review this entire matter from start to end, to include but not limited to, the solicitation of interested property owners, the MST evaluation of properties, property ownership and purchase, and the Project Manager being the project manager with oversight of the construction of the leased healthcare center and determine the appropriate corrective action, if any, to take.