Bloomberg News

Redskins Cheerleaders Asked to Promote U.S. Agency’s Events (1)

October 29, 2013

A U.S. Department of Veterans Affairs marketing consultant asked whether Washington Redskins cheerleaders were available to promote agency conferences in 2011, according a congressional report.

The request is an example of how the VA lost sight of its mission of caring for veterans as it planned extravagant events, according to a House committee report obtained by Bloomberg News in advance of a hearing tomorrow on the agency’s conference spending.

The two agency events were held in Orlando, Florida, near Walt Disney World, and cost taxpayers a minimum of $6.1 million, according to the VA inspector general. The expenses included $50,000 for a 15-minute video spoofing the Oscar-winning movie “Patton.” Eleven employees accepted gifts such as Rockettes tickets, massages and helicopter rides, from vendors while planning the events, the watchdog office said last year.

“E-mails obtained by the committee show that the department’s conference planners unapologetically and recklessly wasted taxpayer dollars,” according to a House Oversight and Government Reform Committee staff report. “Taxpayers deserve better. And even more so, veterans deserve to know that the VA is doing everything it can to provide crucial services.”

Conference Oversight

Victoria Dillon, an agency spokeswoman, didn’t respond to an e-mail and phone call seeking comment on the committee’s report.

The VA has revised its conference policies since last year to “strengthen oversight, improve accountability and safeguard taxpayer dollars,” Gina Farrisee, the department’s assistant secretary for human resources and administration, said in prepared testimony. The changes include requiring approval from senior department officials depending on an event’s cost.

VA Secretary Eric Shinseki has also ordered oversight changes such as removing purchasing authority from some employees and requiring ethics training for staff involved in conference planning, Farrisee said in her written remarks.

According to the committee’s report, Annie Spiczak, identified as an associate deputy assistant secretary in the VA’s Office of Human Resources Management, suggested that the department let other agencies attend the events and pay for their own travel and hotel costs. A colleague responded that he would discuss the idea with other conference planners.

“We are a large agency with deep pockets,” Spiczak said in an e-mail exchange, according to the committee report.

Weeklong ‘Party’

A department employee who helped plan the conferences pressed Mary Santiago, identified in the report as deputy to the dean of the VA Learning University, about how certain items would be funded.

“You don’t have a thing to worry about,” Santiago said in her reply e-mail, according to the committee report.

Another employee told a colleague via e-mail that “the whole week will be a party,” the report said.

Conference planners also spent months organizing a pre-event “kick-off” to boost “employees’ excitement about the conferences,” the committee report said.

The VA marketing consultant asked a representative of the Redskins cheerleaders in May 2011 if the squad could appear at the kickoff event to promote the conferences, the report said. The representative replied that the cheerleaders for the football team would be outside the U.S. at the time and offered to send “ambassadors” instead, according to the report.

“Could you please explain a little about them?” the VA consultant said a reply e-mail included in the report. “As in do they wear uniforms? Have pom-poms etc.?”

IRS Spending

The hearing is the latest effort by Representative Darrell Issa, a California Republican who is chairman of the committee, to expose wasteful spending on conferences by federal agencies. His committee has also reviewed similar spending by the General Services Administration and the Internal Revenue Service as the government seeks to cut costs.

At the two VA human-resources events, the agency incurred $762,000 in unauthorized and wasteful expenses, according to the inspector general’s 2012 findings.

The department last year announced the resignation of John Sepulveda, the VA’s assistant secretary for human resources, before the report on the Florida training events was published.

Sepulveda, who is scheduled to testify before Issa’s committee tomorrow, was on a list of speakers at the Orlando conferences.

Patton Video

The former VA assistant secretary told investigators he hadn’t viewed the Patton video before the conferences, according to the report. He later said he “did not accurately recollect” that his staff had arranged for him to “briefly preview” the videos, according to his sworn statement accompanying the inspector general’s report.

The watchdog office referred the matter to the Justice Department, according to written testimony from Richard Griffin, the VA’s deputy inspector general, for tomorrow’s hearing. The Justice Department declined to prosecute Sepulveda and an event planner who sought a lodging gift “to enrich his and his family’s stay” at the Marriott International Inc. (MAR:US) resort in Orlando, according to the prepared testimony.

Issa’s committee also investigated IRS spending on conferences earlier this year. The tax agency spent $17,000 to hire a speaker who painted pictures of Michael Jordan and U2 singer Bono to motivate employees at a 2010 conference in California, the agency’s inspector general said in a June report.

To contact the reporter on this story: Kathleen Miller in Washington at kmiller01@bloomberg.net

To contact the editor responsible for this story: Stephanie Stoughton at sstoughton@bloomberg.net


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