A company headed by Anthony J. Principi, a man who once served as VA Secretary in the George Bush administration, has been overcharging the Veterans Affairs department for contracted services . Our question is why a man is appointed to head a federal agency from a company that has business with that agency, as does the man who replaced Principi.  Oh, yeah, it's easier to steal the taxpayers' money from the inside.

The California company headed by former Veterans Affairs Secretary Anthony J. Principi overcharged the agency some $6 million under a long-term contract to conduct physical evaluations on veterans applying for disability benefits, an audit has found.

The report, released Thursday, also questioned a proposal by the Department of Veterans Affairs to amend the contract with the company -- QTC Management Inc., based in Diamond Bar -- to charge higher rates than currently authorized.

"The contract clearly limits the base rate" for these services, the 43-page report by the department's inspector general's office states.

The audit also said the proposed amendment amounts to a major or "cardinal change" under federal contracting laws, which can trigger a requirement for a new bidding process.

The report also found evidence that the VA may still be paying too much to the company for a variety of services on the multiyear contract.