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DEMS: VA SECRETARY NICHOLSON MUST RESIGN --
Senate
Minority Leader Harry Reid (D-NV) cites
"incompetence"
in wake of latest VA data theft.

All in favor, raise your right hand.
All information on VA data theft on this
page...
http://www.vawatchdog.org/va%20data%20theft%20news.htm
We have a press release from Senator Reid
and a story from The New York Times.
Reid's press release here...
http://releases.usnewswire.com/GetRelease.asp?id=70430
Press release below:
---------------
Reid: Nicholson Must Resign
To: National Desk
Contact: Jim Manley or Rebecca Kirszner, 202-224-2939, both for Senate
Democratic Leader Harry Reid
SEARCHLIGHT, Nev., Aug. 8 /U.S. Newswire/ -- Senate Democratic Leader
Harry Reid today issued the following statement, calling on Secretary of
Veterans Affairs Jim Nicholson to resign after his department admitted
to having lost the personal information of tens of thousands of veterans
yet again. A fact sheet detailing the incompetence at the Department of
Veterans Affairs is below.
"Less than a month after promising to make the VA the 'gold standard' in
data security, Secretary Nicholson has again presided over loss of the
personal information of thousands more veterans. Our brave troops, who
risk their lives to protect our country, should not also have to fight
to protect their personal data again and again. Unfortunately, this
dangerous incompetence has become all too common in the Bush White
House, and it has made America less safe.
"Enough is enough. From Iraq to the VA, it is time President Bush and
his Republican Congress started demanding accountability on matters of
national security. Secretary Nicholson must resign immediately and be
replaced with an individual who will do more than talk, but deliver on
the promises America makes to those who serve."
---
Even More Dangerous Incompetence at the Department of Veterans Affairs
Veterans Affairs Loses Yet More Personal Data, Putting as Many as 38,000
at Risk for Identity Theft. "As many as 38,000 veterans may be at risk
of identity theft because a Veterans Affairs Department subcontractor
lost a desktop computer containing their sensitive personal data. VA
Secretary Jim Nicholson said that Unisys Corp., a subcontractor hired to
assist in insurance collections for VA medical centers in Philadelphia
and Pittsburgh, reported the missing computer last Thursday. The
computer was being used in Unisys offices in Reston, Va. It is not yet
known what happened to the computer, Nicholson said, adding that local
and federal authorities are investigating. The computer is believed to
contain names, addresses, Social Security numbers, dates of birth,
insurance carriers and claims data including medical information for
veterans who received care at the hospitals in Philadelphia and
Pittsburgh during the past four years." (AP, 8/7/06)
After the Last Security Breach, Secretary Nicholson Promised Reform
Nicholson Said the VA Would Be the "Gold Standard" in Information
Security. "Last October, I approved a major restructuring of information
security within the department, far, far before this incident occurred
and reached the light of day. This restructuring ordered the
centralizing of almost all of the information technology within the
department to come under the chief information officer. This process was
and, of course, still is underway and will greatly facilitate control,
training, responsibility and accountability. This consolidation of IT
has been accelerated as a result of this incident. There have been
several changes that have already been implemented and as we continue
this effort, we can make the VA the gold standard in the area of
information security, just as we've done in the area of electronic
medical records. (Secretary Nicholson, Senate Veterans Affairs Committee
Testimony, 7/20/06)
Nicholson Said the VA Would Be the Best in the Government on Protecting
Personal and Health Information. "I've made it clear to all senior
managers in the department that information security, cyber security and
the reorganization of the office of information technology are top
priorities. These senior leaders know that every employee must be
committed to ensure the safety of Veterans' personal information.
Performance evaluations and executive bonuses will reflect the leaders'
and employees' level of commitment. When I commit to becoming the gold
standard, I mean VA must be the best in the federal government in
protecting personal and health information, training and educating our
employees to achieve that goal. The culture must put the custody of
Veterans' personal information first, over and above expediency, and I
expect nothing less." (Secretary Nicholson, Senate Veterans Affairs
Committee Testimony, 7/20/06) The Long Record of Dangerous Incompetence
at the VA
VA Employee Allowed to Take Information Home for Years Before the Last
Security Breach. "The employee, a data analyst, was authorized access to
sensitive VA information in the performance of his duties and
responsibilities. He said that he routinely took such data home to work
on it, and had been doing so since 2003." (Statement of R. James
Nicholson, 5/25/06)
VA Knew for Years that Information Was at Risk but Did Nothing to Secure
It. "In all four audits of the VA Security Program issued since 2001, we
reported serious vulnerabilities that remain uncorrected. These reports
highlight specific vulnerabilities that can be exploited, but the
recurring themes in these reports are the need for centralization,
remediation, and accountability in VA information security. Since the FY
2001 report, we reported weaknesses in physical security, electronic
security, wireless security, personnel security, and FISMA reporting."
(Testimony of VA Inspector General George Opfer, 5/25/06)
Incompetence at the VA Goes Beyond Data Security
Nicholson Underestimated Funding for Veterans' Health Care by at Least
One Billion Dollars. "House Veterans Affairs Committee Chairman Steve
Buyer (R-Ind.) and Veterans Affairs Secretary Jim Nicholson, who had
both argued that the department could get through this year without
additional cash, held a joint news conference to announce "immediate
action" to fill a fiscal 2005 shortfall of at least $1 billion, and
another shortfall of at least $1.5 billion in the House-passed
appropriation for VA health care in fiscal 2006. Nicholson told
lawmakers Tuesday that the administration had vastly underestimated the
number of service personnel returning from Iraq and Afghanistan who
would seek VA medical treatment." (Washington Post, 6/30/05)
Nicholson Repeatedly and Incorrectly Assured Congress that VA had
Adequate Funds for Veterans' Health Care. An April 5 letter written by
Nicholson to the Senate stated: "I can assure you that VA does not need
emergency supplemental funds in FY2005 to continue to provide timely,
quality service that is always our goal." (Washington Post, 6/24/05)
Secretary Nicholson Has Not Been Forthcoming on Data Security
Secretary Nicholson Grossly Underestimated the Number of the Active Duty
Troops in Harm's Way after the Last Security Breach. "VA Secretary Jim
Nicholson said the agency was mistaken when it said over the weekend
that as many as 50,000 Navy and National Guard personnel -— and no other
active-duty personnel -— were affected by the May 3 burglary. In fact,
names, birth dates and Social Security numbers of as many as 1.1 million
active-duty personnel from all of the armed forces - or 80 pct. of all
active-duty members -— are believed to have been included, along with
430,000 members of the National Guard and 645,000 members of the
reserves." (AP, 6/7/06)
The Department of Veterans Affairs Did Not Inform Veterans of Security
Breach for Over 2 Weeks in the First Breach. "When the government
initially revealed the burglary on May 22, more than two weeks after it
happened, it said the stolen data included the names, birthdates and
Social Security numbers of up to 26.5 million veterans, and their
spouses." (New York Times, 6/7/06)
Secretary Nicholson Was Unable to Give an Adequate Answer as to Why He
Was Not Made Aware of the Theft Sooner.
Senator Collins: And I think you find it to be baffling also, and I
understand how frustrated and angry you must be that it took some 13
days before you were notified of such a serious breach. What is your
theory on that? How do you think it was possible for there to be such
long delays in bringing this incident to your attention? As I said, it
wasn't minor. It didn't involve just a few records. It's just so
obviously urgent and serious that it's so hard for me to understand the
failure of those in the department to inform you.
Secretary Nicholson: It's an appropriate question. It's difficult for me
to answer because some of the people, you know, along the line are some
of the most competent, dedicated people I've ever worked with anywhere.
And it's hard to answer, frankly. So I'm only speculating. We've
discussed it. They feel terrible. They've offered resignations. They
were trying to deal with it, you know, themselves and get their arms
around it and handle it. It's not clear. (Senate Committee on Veteran
Affairs Testimony, 5/25/06)
Secretary Nicholson Was Not Straightforward about the Severity of the
Original Security Breach.
-- Nicholson Said No Medical Records Have Been Compromised: "'I want to
emphasize there was no medical records of any veteran and no financial
information of any veteran that's been compromised,' Nicholson said."
(Bradenton Herald, 5/23/06)
-- Then Nicholson Admitted Information on Disabilities Was Included in
Stolen Data: "Also possibly included were some numerical disability
ratings and the diagnostic codes which identify the disabilities being
compensated." (Statement of R. James Nicholson, 5/25/06)
---------------
News story here...
http://www.nytimes.com/aponline/us/
AP-Vets-Data-Theft.html?_r=1&oref=slogin
Story below:
---------------
VA Chief Blamed for Data Thefts
By THE ASSOCIATED PRESS
WASHINGTON (AP) -- The Senate's top Democrat says Veterans Affairs
Secretary Jim Nicholson should resign, calling his leadership a threat
to national security after the VA lost another computer containing
veterans' personal data.
''Enough is enough,'' Senate Minority Leader Harry Reid, D-Nev., said
Tuesday. ''Less than a month after promising to make the VA the 'gold
standard' in data security, Secretary Nicholson has again presided over
loss of the personal information of thousands more veterans.''
Reid is the third Senate Democrat -- joining Sens. Patrick Leahy of
Vermont and John Kerry of Massachusetts -- who has called for
Nicholson's ouster following high-profile data thefts at the
government's second largest agency.
''Unfortunately, this dangerous incompetence has become all too common
in the Bush White House, and it has made America less safe,'' Reid said.
A VA spokesman did not immediately return a phone call seeking comment.
On Monday, the VA announced that one of its subcontractors, Unisys
Corp., had lost a desktop computer containing personal data for as many
as 38,000 veterans who received care at VA medical centers in
Philadelphia and Pittsburgh. The computer was located at Unisys' offices
in Reston, Va.
Federal and local authorities were investigating the incident, which is
believed to involve veterans' names, addresses, Social Security numbers,
dates of birth, insurance carriers and claims data including medical
information.
The disclosure came two days after authorities said they had arrested
two teens in connection with the May 3 theft of a laptop and external
drive containing the personal data of 26.5 million veterans at a VA
employee's home in suburban Maryland.
On Tuesday, lawmakers from both parties criticized the latest data loss,
which they said needlessly put veterans and active-duty troops at risk
of identity theft.
In recent weeks, the VA has also acknowledged losing sensitive data for
more than 16,000 veterans in at least two other cases in Minneapolis and
Indianapolis.
''We clearly appear to have a systems problem with VA data security that
needs to be fixed,'' said Sen. Larry Craig, R-Idaho, who chairs the
Senate Veterans Affairs Committee.
Leahy said it was time for Bush to hold Nicholson accountable. In May,
White House press secretary Tony Snow said Bush had ''full faith and
confidence'' in Nicholson's leadership.
''Each week seems to bring another alarming example of incompetence by
the Bush administration to protect the personal information of
Americans,'' Leahy said. ''Certainly, our nation's veterans -- who have
been willing to make the ultimate sacrifice for their country -- deserve
better.''
Kerry agreed. ''Fire the incompetents,'' he said. ''Losing veterans'
most sensitive personal information must have consequences.''
---------------
Larry Scott