Rep. Mark Takano says VA Secretary Robert Wilkie's actions resulted in a loss of trust in the institution.
The report accuses senior officials of ignoring problems within the department to pursue political vendettas instead.
If the issue isn't fixed, investigators warn, it could cost taxpayers more than $100 million in the next five years.
In response, the acting VA secretary accused the inspector general of overstepping his authority and hurting the department's image.
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