The agency's executive director was found to have used her position to get one of her partners promoted.
Austin, 70, has had ongoing health issues since undergoing surgery for prostate cancer in December.
By Tara Copp, AP
Austin's medical issue is not expected to interfere with his cancer recovery, according to his doctors.
Deputy Secretary of Defense Kathleen Hicks assumed defense secretary duties late Sunday afternoon.
A Defense Department IG report recommends the civilian employee be reinstated with backpay.
Defense Secretary Lloyd Austin said Thursday that his "first instinct" was to keep his cancer diagnosis private.
Officials have no plans to try and recoup the money, noting that no laws appear to have been violated by the doubled stipend payments.
A Pentagon watchdog found "severe and systemic" problems with the unit’s internal controls on medication, among other issues.
In one instance, funds were spent to investigate a sinkhole, according to a recent Defense Department Inspector General report.
The Associated Press obtained a copy of the 911 call made on Jan. 1 under the Freedom of Information Act.
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