'Money Is Going to the Wrong Spot'

May 3, 2007 — -- Veterans groups responded with outrage today after learning that officials at the Veterans Administration received millions of dollars in bonuses in 2006, a year in which management problems and the mistreatment of wounded veterans led to the appointment of a presidential committee to clean up the mess.

Despite those situations, the VA doled out $3.8 million worth of bonuses last year.

"We are rewarding failure. These are the people who are supposed to serve our veterans, and when they screw up or fail in their job, we should not be rewarding them with lucrative bonuses," said Paul Reickhoff of Iraq and Afghanistan Veterans of America.

"Bonuses … went to people who weren't doing a good job, it sounds like to me," said Sen. Patty Murray, D-Wash. "To reward those people for mismanagement and not good information is exactly the wrong thing to be doing."

The average bonus for VA executives was nearly $17,000, the highest of any federal agency — and 10 executives received bonuses of $30,000.

"Money is going to the wrong spot," said veteran Wade Hampton, who fought in the Korean War.

"It makes me feel that somebody is not doing their job and that the money is probably not going to where it should go to," said World War II veteran Bob Miller.

The federal personnel management agency told ABC News bonuses are supposed to go to those who earn them and that individuals wouldn't "expect" to get one.

"Executives earn their bonuses based on performance and the bonuses are discretionary," explained Kevin Mahoney at the government's Office of Personnel and Management.

In one instance, a $33,000 bonus went to the executive in charge of VA benefits, a system beset by backlogs that were called unacceptable by VA secretary Jim. Nicholson.

"The idea that this guy is going to get $33K for failing to do his job, well, is absolutely outrageous," Reickhoff said.

The VA refused an on-camera interview with ABC News, but in a written statement, it said bonuses are necessary to keep executives who would be making significantly more money in the private sector.