VA tells contractor to stop work
BUTLER TWP — Three months after the ceremonial groundbreaking of a new $74 million VA Butler Healthcare Center, construction is yet to begin.
And now the Department of Veteran's Affairs has stopped any work there until an investigation into the prime contractor is done.
According to a statement issued by the VA, a stop work order was issued by the department June 21 based on the findings of the VA Office of Inspector General investigation into the contractor: VA Butler Partners Company of Cleveland.
Although Westar Development was previously identified as the prime contractor. VA Butler Partners, according to its website, is made up of employees who previously worked for Westar, and it is a “special purpose entity formed to develop, build and subsequently manage” the VA Butler Healthcare Center “for an initial period of 20 years.”
Representatives of the VA in Washington, D.C., and in Butler Township refused to say what allegations are being investigated. Genevieve Billia, in public affairs for the VA in Washington, said officials there would issue no comment because “everything is still under investigation.”
However, the written statement says, “(The) VA takes these allegations very seriously, and will aggressively pursue any and all legal actions necessary. The stop work order provides formal notice to the contractor to cease work on the contract until further notice. VA will continue to evaluate the allegations to determine the appropriate next actions.”
The investigation focuses on the contractor as well as “certain company representatives,” according to the written statement.
Although the statement does not name those representatives, just days before the facility's ceremonial ground breaking in April, a senior vice president of Westar Development, Robert “Bob” Berryhill, 51, was indicted on construction related fraud charges in U.S. District Court in Cleveland.
At the time of Berryhill's indictment, officials with the U.S. Attorney for the Northern District of Ohio said none of the allegations against Berryhill were related to Westar or the veterans facility in Butler Township.
The charges were in relation to Berryhill's actions before being hired by Westar. Berryhill, then employed by a different company, is accused of creating a fictitious company as a way to divert at least $225,000 from construction projects, including the construction of two FBI buildings, for his own personal use.
Berryhill pleaded guilty to all of the charges April 23, and he is to be sentenced July 30.
Within days of his indictment, Berryhill was removed from the Butler Township project and fired by Westar.Berryhill, when reached by telephone Friday, denied any knowledge of the investigation in Butler County.“I know nothing about that,” Berryhill said. “I have nothing to do with Westar anymore.”Both Westar and the VA Butler Partners list the same person as president: Sam Calabrese, who could not be reached for comment.Ken Kalberer, health systems specialist at VA Butler, said only that the agency is “working closely” with the investigators to resolve this matter and move forward. He stressed that no current services or programs are impacted.The new facility to be at the 21-acre Deshon Woods just south of the current VA facility is to be 168,000-square-feet and three stories high. Officials have said it will more efficiently provide outpatient services, including primary care, specialty care, mental health, dental, diagnostic, laboratory, pathology, radiology, podiatry, optometry, pharmacy, physical rehabilitation and women's health.Once completed, the facility was to be leased by the VA from the developer for $7.6 million annually.Initially, the facility was to open in 2015. Officials have not said if the stop work order would impact that date.But even if the stop order was not in place, construction could not begin yet.The developers have only received a grading permit from the township, and they have been doing grading. However, the developers do not have a complete building permit from the township, and therefore cannot build any infrastructure.Jesse Hines, zoning officer, said township officials still are waiting for a few land development items, including a highway occupancy permit from the state before issuing a building permit.In a written statement, U.S. Rep. Mike Kelly, R-3rd, of Butler said the VA made his office aware of the investigation of the project. However, Kelly said he is not aware of any findings.“We will give the IG's office time to do its job and see what it reports,” the statement says.
