[Senate Hearing 108-171]
[From the U.S. Government Publishing Office]
S. Hrg. 108-171
NOMINATIONS OF C. STEWART VERDERY, JR. AND MICHAEL J. GARCIA
=======================================================================
HEARING
before the
COMMITTEE ON
GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
ONE HUNDRED EIGHTH CONGRESS
FIRST SESSION
ON THE
NOMINATIONS OF C. STEWART VERDERY, JR., TO BE ASSISTANT SECRETARY FOR
POLICY AND PLANNING, BORDER AND TRANSPORTATION SECURITY DIRECTORATE,
DEPARTMENT OF HOMELAND SECURITY, AND MICHAEL J. GARCIA, TO BE ASSISTANT
SECRETARY FOR IMMIGRATION AND CUSTOMS ENFORCEMENT, DEPARTMENT OF
HOMELAND SECURITY
__________
JUNE 5, 2003
__________
Printed for the use of the Committee on Governmental Affairs
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COMMITTEE ON GOVERNMENTAL AFFAIRS
SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska JOSEPH I. LIEBERMAN, Connecticut
GEORGE V. VOINOVICH, Ohio CARL LEVIN, Michigan
NORM COLEMAN, Minnesota DANIEL K. AKAKA, Hawaii
ARLEN SPECTER, Pennsylvania RICHARD J. DURBIN, Illinois
ROBERT F. BENNETT, Utah THOMAS R. CARPER, Deleware
PETER G. FITZGERALD, Illinois MARK DAYTON, Minnesota
JOHN E. SUNUNU, New Hampshire FRANK LAUTENBERG, New Jersey
RICHARD C. SHELBY, Alabama MARK PRYOR, Arkansas
Michael D. Bopp, Staff Director and Counsel
Johanna L. Hardy, Senior Counsel
Rob Owen, Preofessional Staff Member
Joyce A. Rechtschaffen, Minority Staff Director and Counsel
Kevin J. Landy, Minority Counsel
Susan E. Propper, Minority Counsel
Jennifer E. Hamilton, Minority Research Assistant
Darla D. Cassell, Chief Clerk
C O N T E N T S
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Opening statements:
Page
Senator Collins.............................................. 1
Senator Levin................................................ 15
WITNESSES
Thursday, June 5, 2003
Hon. John W. Warner, a U.S. Senator from the State of Virginia... 2
Hon. Don Nickles, a U.S. Senator from the State of Oklahoma...... 3
Hon. Saxby Chambliss, a U.S. Senator from the State of Georgia... 4
C. Stewart Verdery, Jr., to be Assistant Secretary for Policy and
Planning, Border and Transportation Security Directorate,
Department of Homeland Security................................ 5
Michael J. Garcia, to be Assistant Secretary for Immigration and
Customs Enforcement, Department of Homeland Security........... 7
Alphabetical List of Witnesses
Chambliss, Hon. Saxby:
Testimony.................................................... 4
Garcia, Michael J.:
Testimony.................................................... 7
Prepared statement........................................... 76
Biographical and professional information.................... 82
Pre-hearing questionnaire.................................... 87
Post-hearing questions and responses from Senator Lieberman.. 141
Post-hearing questions and responses from Senator Levin...... 184
Post-hearing questions and responses from Senator Durbin..... 189
Nickles, Hon. Don:
Testimony.................................................... 3
Verdery, C. Stewart, Jr.:
Testimony.................................................... 5
Prepared statement........................................... 24
Biographical and professional information.................... 27
Pre-hearing questionnaire.................................... 36
Post-hearing questions and responses from Senator Lieberman.. 72
Post-hearing questions and responses from Senator Levin...... 73
Post-hearing questions and responses from Senator Durbin..... 74
Warner, Hon. John W.:
Testimony.................................................... 2
Prepared statement........................................... 23
NOMINATIONS OF C. STEWART VERDERY, JR. AND MICHAEL J. GARCIA
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THURSDAY, JUNE 5, 2003
U.S. Senate,
Committee on Governmental Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 10:37 a.m., in
room SD-342, Dirksen Senate Office Building, Hon. Susan M.
Collins, Chairman of the Committee, presiding.
Present: Senators Collins and Levin.
OPENING STATEMENT OF CHAIRMAN COLLINS
Chairman Collins. The Committee will come to order.
Good morning. Today the Committee on Governmental Affairs
is holding a hearing to consider the nominations of Charles
Stewart Verdery to be Assistant Secretary for Policy and
Planning in the Border and Transportation Security Directorate
of the Department of Homeland Security, and Michael J. Garcia
to be the Assistant Secretary for the Bureau of Immigration and
Customs Enforcement at the Department of Homeland Security.
The Department of Homeland Security was officially born on
January 24 of this year. It is however, still far from being
fully staffed. That is why it is so important for this
Committee and the Senate to move quickly to fill the openings
at the Department so that it can move forward with its mission
of protecting our country from terrorist attacks.
I think I know how a minister or a priest feels now. But
let me say that we are absolutely delighted to have family
members present so that they can participate in this hearing.
Mr. Verdery will face many challenges as Assistant
Secretary for Policy and Planning. The Border and
Transportation Security Directorate is charged with the
responsibility for securing our Nation's borders and
transportation systems. To accomplish this daunting task, the
functions of the U.S. Customs Service, the Immigration and
Naturalization Service's enforcement functions, the Animal and
Plant Health Inspection Service, the Transportation Security
Administration, the Federal Law Enforcement Training Center,
and the Federal Protective Service have all been transferred to
this directorate.
Streamlining and better coordinating their functions are
critical steps in improving security. As the Department acts to
improve security at our borders and transportation systems, it
must balance those efforts with other national interests. In
securing our borders, the Department must be careful to ensure
that the flow of legitimate commerce is not unduly impeded.
Families and businesses in border communities know particularly
well how important it is for many Americans to be able to
travel back and forth without undue restrictions.
The Department also must balance security with privacy
concerns and civil liberties. For example, concerns have been
raised regarding programs such as CAPPS-II. The department must
strive to develop screening processes that will be effective in
identifying and preventing terrorists from entering our country
but which do not unduly invade the privacy of law-abiding
citizens.
As the past Acting Director of the Immigration and
Naturalization Service, Mr. Garcia knows these issues well. He
knows the issues and the battles that lie in front of him. The
Bureau of Immigration and Customs Enforcement brings together
some 14,000 employees to focus on the enforcement of
immigration and customs laws and the protection of Federal
buildings. It encompasses the immigration and customs
investigations and intelligence functions, Custom's air and
marine interdiction, immigration detention and removal, and the
Federal Protective Service.
One of the major challenges awaiting Mr. Garcia may be from
within the Department itself, ensuring proper cooperation,
communication, and coordination among key components of the new
Department.
The two nominees before us today will be charged, if
confirmed, with carrying out extraordinarily important missions
and taking on the many challenges confronting the new
Department. The experience and background that they bring to
the Department, I believe, will serve them well as they tackle
their new responsibilities.
It is now my great pleasure to recognize my colleagues who
are here today. I think it speaks extremely well for these
nominees that they have with them such distinguished members of
the U.S. Senate who are willing to take time from their busy
schedules to introduce them.
I am trying to figure out who has seniority here, but I
think I will go with my Chairman on the Armed Services
Committee, always a wise choice, and I will call on the
distinguished senior Senator from the Commonwealth of Virginia,
Senator John Warner.
STATEMENT OF HON. JOHN W. WARNER,\1\ A U.S. SENATOR FROM THE
STATE OF VIRGINIA
Senator Warner. I thank you very much, Madam Chairman. I
guess this is my 25th year, quarter of a century, in this
institution. So maybe I have a year or two on some of my
colleagues. Not too much on Senator Nickles, but I do see a
freshman at the end, and he is a powerful voice already in this
body.
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\1\ The prepared statement of Senator Warner appears in the
Appendix on page 23.
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But we are here for very important business, Madam Chairman
and hearing these young voices of the children just reminds me
of when I came before a committee so many years ago for advise
and consent, and my children were small. And it is very
important that the families join. So I would like to start by
asking Stewart Verdery, who is a part of my family in the
Senate, and I look upon my staff as a family, would you
introduce your family?
Mr. Verdery. Sure, of course, Senator. Thank you.
My mother, Linda; my wife, Jenny; my father, Charlie; my
step-mother, Marty; father-in-law, Harvey; my daughter
Isabelle; my son Chase who is out in the hall. My mother-in-
law, Phyllis; and sister-in-law, Lisa.
Chairman Collins. Thank you.
Senator Warner. Given that we have so many colleagues
waiting, I will put my full statement in the record.
Chairman Collins. Without objection.
Senator Warner. But this fine nominee, selected by the
President and the Secretary of Homeland Security, has had a
broad and extensive career. And each challenge he has met and
succeeded and left a record of accomplishments. They are all
documented in here very carefully.
And it is my privilege to put my complete credibility
behind this man, such as it is in this institution, to say that
he will do extremely well in this position.
As chairman of the Rules Committee at one time, Stewart
worked for me and performed a number of very important
legislative tasks and the Committee has investigation
responsibilities, as this Committee does, all of which were
performed wonderfully.
As a matter of fact, he performed so well that the
leadership stole him. And I will let the Senator from Oklahoma
explain the circumstances under which he was hijacked out of my
office.
I thank the Chairperson, and you are on your own.
Chairman Collins. I thank the Senator from Virginia.
I am very pleased to call on my friend and colleague, the
senior Senator from Oklahoma and the Chairman of the Budget
Committee, for his remarks.
STATEMENT OF HON. DON NICKLES, A U.S. SENATOR FROM THE STATE OF
OKLAHOMA
Senator Nickles. Madam Chairman, thank you.
I wish to join with Senator Warner in urging the speedy
confirmation. I very much appreciate your having this
confirmation hearing and I would urge colleagues on this
Committee to vote in the affirmative as soon as possible for
the confirmation of Stewart Verdery to be Assistant Secretary
for Border and Transportation, Department of Homeland Security.
I have had the pleasure, Senator Warner mentioned he is
part of the family, and Stewart Verdery is. He and his wife,
Jenny, were married while they were on my staff, or he was on
staff and we wanted to have Jenny on our staff. So I have been
friends with both for a long time. I knew Stewart when he was
counsel to the Rules Committee. Also, he served as counsel on
the Judiciary Committee, and did an outstanding job in those
capacities.
He has experience in the private sector, as well, before
coming to the Senate, graduating from the University of
Virginia.
I have had the pleasure of working with him when he was
general counsel to me as Assistant Majority Leader. He just did
a fantastic job.
He not only worked for me, but frankly worked for the
entire U.S. Senate, and in that capacity performed a number of
functions. As all Senators do, we deal with a lot of issues, a
lot of legal issues. And Stewart Verdery was my legal counsel
and he did a good job not only for me but for the entire
Senate.
So Madam Chairman, it is with great pleasure and honor that
I recommend to this Committee and to the full Senate a friend
and a person who I know will do an outstanding job as Assistant
Secretary of the Department of Homeland Security.
Chairman Collins. I thank the Senator very much for his
comments. I know that he has a busy schedule and I would be
happy to excuse him if he needs to leave.
It is now with great pleasure that I turn to an outstanding
new Member of the Senate, Senator Saxby Chambliss, who
represents the State of George so ably. We are very pleased to
have you here today to introduce Mr. Garcia.
STATEMENT OF HON. SAXBY CHAMBLISS, A U.S. SENATOR FROM THE
STATE OF GEORGIA
Senator Chambliss. Thank you, Madam Chairman.
It is indeed a privilege and a pleasure for me to be here
appearing before you, and I appreciate and thank you for the
great work that you do on this Committee. You and I serve on
the Armed Services Committee together and it is a pleasure to
serve there with you.
I am pleased to introduce Michael Garcia as the President's
nominee to be Assistant Secretary for the Bureau of Immigration
and Customs Enforcement within the Department of Homeland
Security.
I would also like just to take a minute to recognize his
wife, Liana, and their three children, Manuel, Sophia, and
Michael. And those of us who have children know and understand
that two out of three is not bad, when you get them in a
scenario like this. They are certainly beautiful children, and
a beautiful and very supportive wife. They will be a great
asset to Michael in his position.
I want to say some things about Michael specifically, but
one thing that really pleases me about this nominee to the
Department of Homeland Security is the fact that I have had the
opportunity to work with Secretary Ridge from the very first
day the President considered him for his original position, and
I have been extremely impressed with the fact that the first
thing he did was to surround himself with good people.
Michael is one of these folks who comes from the private
sector, and that always impresses me, when somebody is willing
to come from the private sector into the public sector and make
a commitment to public service. This young man has done that
and he has distinguished himself significantly during his years
in public service.
He served as Acting Commissioner of the Immigration and
Naturalization Service from December 2002 to February 2003. In
his new role at the Enforcement Bureau, I am confident he will
continue to improve the security of this country from the
threat of terrorism.
Mr. Garcia previously served as an Assistant Secretary of
Commerce for Export Enforcement from August 2001 to November
2002. He is a distinguished Federal prosecutor who has worked
in counter-terrorism and national security issues for 10 years.
In fact, he is the only nominee who has successfully prosecuted
and convicted a terrorist to date.
His prosecutions include the defendants who bombed two
American embassies in East Africa, the defendants in the first
World Trade Center bombing, and the defendant in the conspiracy
to plant bombs aboard 12 American passenger airlines in the Far
East. For these cases and his prosecution thereof, Mr. Garcia
received the Attorney General's award for exceptional service,
the Department of Justice's highest reward.
Madam Chairman, it is indeed a great privilege and a
pleasure for me to recommended and to introduce to you Michael
Garcia this morning. Thank you.
Chairman Collins. Thank you very much, Senator. We very
much appreciate your taking time to be here today, and it
certainly speaks well of the nominee, that you are willing to
do so. So thank you for your testimony.
Both nominees have filed responses to biographical and
financial questionnaires, answered pre-hearing questions
submitted by the Committee, and had their financial statements
reviewed by the Office of Government Ethics. Without objection,
this information will be made part of the hearing record with
the exception of the financial data, which are on file and
available for public inspection in the Committee's office.
Our Committee rules require that all witnesses at
nomination hearings give their testimony under oath, so I am
going to ask that you each stand and raise your right hand.
[Witnesses sworn.]
Chairman Collins. Thank you. You may be seated.
Mr. Verdery, do you have a statement that you would like to
make at this time?
TESTIMONY OF C. STEWART VERDERY,\1\ TO BE ASSISTANT SECRETARY
FOR POLICY AND PLANNING, BORDER AND TRANSPORTATION SECURITY
DIRECTORATE, DEPARTMENT OF HOMELAND SECURITY
Mr. Verdery. I do, Madam Chairman. I will try to keep this
relatively quick.
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\1\ The prepared statement of Mr. Verdery appears in the Appendix
on page 25.
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Madam Chairman and the Governmental Affairs Committee, it
is a great honor to be before you today as a nominee to be an
Assistant Secretary for Homeland Security for Policy and
Planning at the Border and Transportation Security Directorate.
This is a very unwieldy title but perhaps it is indicative
of the challenges that this new Department will encounter in
its first year as the primary face of our country's efforts to
deter, detect, and defend against acts of terrorism.
I am grateful for the kind introductions of my two former
bosses, Senators Warner and Nickles. Senator Warner was kind
enough to give me my start in public service. And his career,
especially three decades of leadership on national security
issues, is a particular inspiration to those of us who grew up
in Virginia, as I did.
As Senator Nickles mentioned, he and I worked through
impeachment and Columbine and campaign finance, and other
issues and events big and small. And each day in the Capitol,
working for him, was a day I just loved coming to work.
The most memorable of those days, of course, were those
following September 11, 2001. We all remember well the
bipartisan effort which spawned a host of responses to the
terrorist attacks, including the Patriot Act, and the creation
of the Transportation Security Administration, TSA. Those days
exemplified the kind of public service which is truly
gratifying. In that spirit, I hope and I believe that this new
Department of Homeland Security will embody a national endeavor
to secure our borders, our economy, our freedoms and our lives.
Thanks to Senator Warner's kind introduction, I have
already introduced my family members and I just would like to
say for the record how much I appreciate them being here and
their support for me and my career. It means a lot, of course,
and I could not do it without all of them.
The Office of Policy and Planning, which I would direct if
confirmed, occupies a key role in DHS, and specifically in the
Border and Transportation Security Directorate, BTS. The office
is charged to develop, evaluate, and coordinate policy for BTS.
In advising the BTS Under Secretary, Asa Hutchinson, the
Assistant Secretary for Policy is responsible for working on a
day-to-day basis with the agencies which comprise much of what
I like to call the meat and potatoes of homeland security.
Thus, the Policy Office will seek to ensure that the policies
implemented by BTS component agencies, which are the Bureau of
Immigration and Customs Enforcement--for which Mr. Garcia has
been nominated and is actively running--the Bureau of Customs
and Border Protection, TSA, the Federal Law Enforcement
Training Center, and the Office of Domestic Preparedness, are
designed to fulfill BTS' responsibilities.
This office will also coordinate BTS policy initiatives
with other agencies within DHS, such as the Bureau of
Citizenship and Immigration Services, and outside DHS, such as
Departments of State and Justice. To address these duties, BTS
is building a top-notch staff of policy professionals with deep
experience in immigration, customs, transportation,
international affairs, and strategic planning.
My full statement, which I will place in the record, goes
through some of the most important tasks that this office will
be working on, including identifying and denying entry to those
trying to enter the country illegally or to do us harm,
securing our transportation systems, constructing our anti-
terrorism efforts so they enhance and not diminish traditional
missions of the agencies, such as combating narcotics, and
fulfilling all of these responsibilities within the bounds of
the law, with respect for our foreign neighbors, and with
appropriate communication with the Congress, and with the
public at large.
I am confident that if confirmed my experience both in the
public and private sectors will serve me well in this new
endeavor, and my full statement goes into some of the
experiences I have which Senator Warner and Nickles have
already detailed.
I joined DHS as a consultant in April while my nomination
was pending before your Committee. And each day I have seen
firsthand the skill and determination of dedicated public
servants such as Secretary Ridge, Under Secretary Hutchinson,
my colleague Michael Garcia, and the rest of the DHS
leadership. These officials, of course, are represented in the
field by over 170,000 professionals dedicated to protecting our
Nation.
If I am confirmed, I am extremely excited to travel to our
border crossings, our ports, our airports, and other sites on
the front lines to learn from these agents and inspectors who
form the backbone of our homeland security regime.
Last, Madam Chairman, having been a creature of the
Congress, I believe in Congress's prerogative to obtain timely
and accurate information about Executive Branch activities. If
confirmed, I will make every effort to work with this Committee
and those other committees which create the authorities and
budgets under which we operate.
Thank you again for the chance to appear before you today
and I look forward to any questions you might have. Thank you.
Chairman Collins. Thank you very much. Your full statement
will be made part of the record. Mr. Garcia.
TESTIMONY OF MICHAEL J. GARCIA,\1\ TO BE ASSISTANT SECRETARY
FOR IMMIGRATION AND CUSTOMS ENFORCEMENT, DEPARTMENT OF HOMELAND
SECURITY
Mr. Garcia. Thank you. Good morning, Madam Chairman.
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\1\ The prepared statement of Mr. Garcia appears in the Appendix on
page 77.
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Let me thank you for the gracious welcome that you have
given to my family here today. Their support, obviously, is so
important as well as their sometimes quite vocal support today.
It is an honor to appear before the Committee as the
nominee for the position of Assistant Secretary for the Bureau
of Immigration and Customs Enforcement, or BICE, within the
Department of Homeland Security.
I would like to thank the President for the confidence he
has shown in me by again nominating me to serve as a leader of
a critical law enforcement agency within his administration.
The leadership demonstrated by Congress in swiftly passing
the Homeland Security Act, and the President's commitment to
expeditiously implement the Act, are monumental achievements in
the defense of our Nation against the threat of terrorism.
If confirmed, I will continue to implement the Act
consistent with its intent and will remain focused on its
overarching mission of providing greater security to our
country.
For the past 10 years, my career in public service has been
devoted to counter-terrorism and national security issues. This
experience provides me with a unique perspective regarding the
threats confronting our homeland and the tools and capabilities
required to effectively meet them. I would bring this
perspective and experience to the job of Assistant Secretary
for Immigration and Customs Enforcement should I be confirmed
in this position.
I would like briefly to describe my career in public
service. After completing a clerkship for Judith Kaye on the
New York Court of Appeals, I had the privilege of joining the
U.S. Attorney's Office for the Southern District of New York. I
joined that office at a unique time in its history. Six months
after my appointment as an Assistant U.S. Attorney in February,
1993, the first attempt to topple the World Trade Center took
place. It was, at the time, the single most devastating act of
terrorism ever committed on U.S. soil. I was one of the
prosecutors assigned to lead the investigation into that
attack.
This was new territory for law enforcement. From the
investigative techniques brought to bear to the laws used to
bring the terrorists to justice, the case was a new model for
terrorism prosecutions. All available tools were used,
including statutes covering violations of the immigration law.
Agents from every Federal law enforcement agency brought
their authorities and expertise to the case. As a member of the
prosecution team, I was responsible for guiding this effort,
presenting evidence to gain indictments, and presenting the
case in court. All four defendants were convicted on all counts
in that case, and I received the Attorney General's Award for
Exceptional Service, the highest award presented by the U.S.
Department of Justice, for my work.
My work on the World Trade Center bombing case would define
my career in government service. Less than 1 year after the
verdict in the World Trade Center case, an explosion took place
halfway around the world in Manila, where Ramzi Yousef, the
mastermind of the World Trade Center attacks, and his
associates were mixing chemicals in an apartment in preparation
for attacks on 12 U.S. airplanes. Their plan was to detonate
bombs aboard those planes while they were airborne and filled
with passengers on their way from Asia to the United States. I
flew to Manila and directed the investigation and prosecution
of that terrorist conspiracy. I oversaw a case that, unlike the
1993 World Trade Center bombing, involved terrorist activity
outside the United States aimed at this country's national
security.
In bringing charges against Yousef and his co-conspirators,
including then-fugitive Khalid Sheikh Mohamed, I was the first
to use some of the antiterrorism statutes passed by Congress
after the Trade Center bombing.
I also coordinated the cooperation in the trial of a number
of foreign governments. In 1996, Yousef and two other
terrorists were convicted on all counts. I again received the
Attorney General's Award for Exceptional Service for my work on
that case.
In 1998, followers of Osama Bin Laden bombed our embassies
in Nairobi, Kenya and Dar es Salaam, and Tanzania. More than
200 persons were murdered in these attacks. I was assigned as
one of the lead prosecutors on the case against four al Qaeda
operatives who stood trial in New York on charges related to
those attacks.
In preparing this case, I managed and led a team of
investigators and staff in a worldwide effort to gather
evidence, return terrorists to the United States, and
coordinate efforts with the intelligence community. The jury
returned guilty verdicts in this trial on all 302 counts.
The case raised a number of issues of first impression with
regard to crimes committed against U.S. interests overseas and
the intersection of criminal investigations and intelligence
gathering.
In addition to the Attorney General's Award for
Distinguished Service, I was awarded the CIA's ``Agency Seal
Medallion'' for my efforts in coordinating our criminal case
with the intelligence community.
My extensive management of complex counter-terrorism
prosecutions has taught me important lessons about counter-
terrorism that I would bring to my role in BICE if confirmed.
Three of the most important are: First, the need to use all of
our enforcement tools and authorities in support of our
counter-terrorism efforts.
Second, the importance of coordination across agencies and
with the Intelligence Community.
And third, that prevention and disruption need to be vital
components of our counter-terrorism strategy.
After the guilty verdicts in the embassy bombing case, I
was nominated by the President and confirmed by the Senate as
Assistant Secretary of Commerce for Export Enforcement. In this
position, I led an enforcement agency with a national security
mission, preventing sensitive technology from falling into the
hands of those who would use it to harm U.S. national security.
In December 2002, the President designated me Acting
Commissioner of the INS. As Acting Commissioner, I was honored
to lead the transition of that agency into the Department of
Homeland Security, while at the same time ensuring that the
critical day-to-day work of the Agency continued uninterrupted.
This was a monumental task, involving dissolution of a 36,000-
person Agency.
After the creation of DHS and the transfer of INS functions
to that department, I was named Acting Assistant Secretary of
DHS for the Bureau of Immigration and Customs Enforcement.
BICE, with 14,000 employees and 5,500 special agents, is the
second largest investigative Federal law enforcement agency. On
March 1, that agency stood up a management structure that
enabled all BICE employees to continue on with their critical
enforcement missions while seeking to take advantage of the new
opportunities presented by having the tools and authorities of
the legacy components of INS, Customs, and the Federal
Protective Service.
This is the challenge of BICE, to create a unified law
enforcement agency capable of bringing all its law-enforcement
tools to bear in an efficient and effective manner on the
vulnerabilities to our homeland security. We are in the process
of a reorganization that will provide BICE with a unified
investigative structure, both in the field office and at
headquarters.
The reorganization will also create one unified
intelligence division from the Agency's legacy components. If
confirmed, I would bring to the task of leading this new
enforcement agency a perspective gained from a career dedicated
to antiterrorism and national security. I would use this
experience to guide my vision of a unified Agency, committed to
a partnership with its Federal, State and local counterparts,
and committed to full and fair application of the tools and
authorities given to BICE.
Madam Chairwoman, in conclusion, I would again like to
commend Congress on its efforts to protect the American people
from those who seek to do us harm. It is an honor to be
nominated as the Assistant Secretary to lead dedicated law-
enforcement officers in this unprecedented time.
If confirmed, I vow to work together with this Committee
and with Congress to strengthen our Nation's defense and
protect the American people.
Thank you again for your consideration, and I look forward
to answering your questions.
Chairman Collins. Thank you very much, Mr. Garcia.
I am going to begin my questioning this morning with
standard questions that we ask of all nominees for the record.
There are three of them.
First, is there anything that you are aware of in your
background which might present a conflict of interest with the
duties of the office to which you have been nominated? Mr.
Verdery.
Mr. Verdery. Madam Chairman, as part of my written answers,
I have detailed several issues I have discussed with the
designated ethics officer. I do not feel that any of them are
an actual conflict of interest, but they have been disclosed in
the written answers to your questions.
Chairman Collins. Mr. Garcia.
Mr. Garcia. None that I am aware of.
Chairman Collins. Second, do you know of anything personal
or otherwise that would, in any way, prevent you from fully and
honorably discharging the responsibilities of the office to
which you have been nominated? Mr. Verdery.
Mr. Verdery. I do not.
Chairman Collins. Mr. Garcia.
Mr. Garcia. I do not.
Chairman Collins. And third, do you agree without
reservation to respond to any reasonable summons to appear and
testify before any duly constituted committee of Congress if
you are confirmed? Mr. Verdery.
Mr. Verdery. I do.
Chairman Collins. Mr. Garcia.
Mr. Garcia. Yes, I do.
Chairman Collins. Well, you passed those very well. Now we
will turn to some substantive questions.
Mr. Garcia, an issue that has arisen in my home State of
Maine lately has affected many of the residents in border
communities where there are very small numbers of people living
but they cross freely back and forth through border crossings
to Canada. The Immigration Service and Customs have closed or
restricted the hours of some of these border crossings, which
has created a number of difficulties for many of my
constituents.
Just to give you a fuller understanding of the border
communities, frequently family members live on the Canadian
side of the border. People cross the border to go to church,
for medical care, to buy groceries, to visit friends, even to
work. So the crossings are very routine and occur literally
daily.
What has happened with some of these smaller crossings is
the Federal Government has greatly restricted the hours that
the crossings are open. For example, they may be closed from
Friday at 4 o'clock until Monday at 8 a.m. Thus, in one
community's case, restricting the ability of citizens to cross
the border to go to church on the Canadian side.
Could I have a commitment from you to work with my office
to try to come up with solutions that respect the traditions of
these communities while at the same time recognizing the new
security considerations that we face in a post-September 11
environment?
Mr. Garcia. Absolutely, Madam Chairman. And in fact, you
have my commitment, it is also one of the objectives of the
enabling legislation, the statute creating the Department of
Homeland Security. One of the missions of this Department is to
protect national security but also to protect, and not
interfere with, the free and lawful flow of goods and people
across our borders. We are committed to that mission and I look
forward to working with you, and with my colleagues in the
other bureaus and agencies in affecting that very important
part of our mission.
Chairman Collins. Mr. Garcia, I do appreciate that
commitment.
Last month a terrible tragedy occurred in Victoria, Texas
in which 19 illegal immigrants died in a tractor-trailer as
they were being smuggled across the border into the United
States. Could you talk to us about how this case was
investigated by your Department? How were resources allocated?
Because I think it would help the Committee understand how the
new organization of the Department is being brought to bear
when you have a terrible tragedy such as that one.
Mr. Garcia. Yes, Senator. The case in Victoria, Texas, is a
terrible tragedy, 19 people murdered in the back of a tractor-
trailer near our Southern border.
Our response to that tragedy, I think, exemplifies what we
bring now as one unified agency within BICE, within the
Department of Homeland Security. Approaching that case, instead
of the traditional way of approaching it, which would be to
send experienced investigators in anti-smuggling to the scene,
we did that. But in addition, we sent assets from our other
legacy components.
So in the Victoria case, we sent immigration investigators
trained in anti-smuggling. We sent Customs investigators,
trained in financial crimes, to bring that expertise to the
smuggling field, something we could not do in the past. We
brought technical experts from what was the Customs Service,
now part of BICE, to the location in Texas to bring their
expertise to bear in tracking telephones and other follow up of
technical investigative avenues.
As a result of that effort, which involved incorporation of
all our enforcement tools, we saw tremendous success working
with the U.S. Attorneys Office. Within a matter of days there
were 11 charges filed against defendants, and I believe eight
individuals are in custody charged with crimes related to that
terrible tragedy.
In fact, the U.S. Attorney Shelby from Houston has made
statements in Houston to the effect that this is the model for
going forward that he would like to see. That in fact, BICE's
response to this terrible crime is what the Department of
Homeland Security should be doing to bring all our assets to
bear in new ways, in more effective ways, on the crimes that
are within our jurisdiction.
We are going to take our model from Victoria and use it to
go forward as best practices to approach anti-smuggling and to
approach other criminal acts within our jurisdiction. So, I
think Victoria showed that BICE could respond as a unified
agency and showed us the road map for going forward and being
an effective and unified law enforcement agency.
Chairman Collins. Thank you.
Mr. Garcia, immigration issues are being dealt with in
three separate bureaus within the new Department, the Bureau of
Immigration and Customs Enforcement, the Bureau of Customs and
Border Protection, and the Bureau of Citizenship and
Immigration Services.
The Immigration and Naturalization Service historically has
been a troubled agency and one that has had difficulties in
reconciling its service functions with its enforcement
functions. In fact, I would say that if you talked to Members
of Congress, you will hear more complaints about INS than
virtually any other Federal agency.
How do you plan to improve the performance of these bureaus
and also ensure that they coordinate their efforts better and
not duplicate each other's efforts, given the three separate
bureaus with joint responsibility.
Mr. Garcia. I have heard a number of complaints from
Members of Congress. It is obviously one of our top priorities.
I think first, the structure that we have been given by
Congress, the enabling legislation, addresses a number of the
issues that INS had in the past. By breaking us into basically
three separate components, we are able to focus on our specific
missions more effectively, more efficiently, inspectors with
inspectors at the border, investigators with our investigators
within BICE, our important service groups reporting directly to
the Deputy Secretary.
The challenge for us now, given that advance in our ability
to function, is to continue to coordinate and cooperate among
those agencies so we do not have duplication, so we do not have
people going at cross-purposes, so we coordinate policy and the
way policy is implemented.
We have done a number of things to make sure that this
happens. I touched on them in detail, I believe, in my written
responses to the Committee's questions, but I have a strong
relationship with Commissioner Bonner and with Acting Director
Aguirre. And I am in communication with them directly.
We have established working groups at very high levels to
address specific issues and implement procedures. And we have
designated very high-level persons within our front offices to
act as liaison, involved in issues that are interagency,
involved in the issues of our colleagues as they go forward as
BCIS and BCBP. And we are doing all of those things to bring to
bear our tools in an effective way, but also to make sure that
we are coordinating as we go forward. And I believe that is the
challenge, now that we have gone forward as separate agencies,
the challenge is to also maintain good communication and good
coordination.
Chairman Collins. The Department of Justice's Inspector
General released a report recently that criticized the handling
of hundreds of immigrants who were taken into custody by the
Federal Government in the months following September 11. The
report highlighted some 21 recommendations dealing with issues
such as the need to develop uniform arrest and detainee
classification policies, methods to improve information sharing
among Federal agencies, and improving the oversight of
detainees housed in contract facilities.
I realize that the report has only been out for a brief
time, but could you give us your comments on it? And what role
will you play in ensuring that these recommendations by the
Inspector General will be implemented?
Mr. Garcia. I have seen the report and I have read it. We
are committed at BICE to working to respond to the
recommendations made by the Inspector General in that report,
obviously very serious and important issues raised in that
study. We have already begun work with our colleagues, both
within BICE, within the Department of Homeland Security, and
also within the Department of Justice and government in
responding to the IG's concerns and to the recommendations and
the issues raised there.
I think it is a very important study properly done, to look
at a time in our history that was unique. And it is important
for us now to look at that, look at the IG's recommendations,
and go forward.
Chairman Collins. Mr. Verdery, the Office of Domestic
Preparedness is currently within the Border and Transportation
Security Directorate. And that has never made a great deal of
sense to me. As you know, ODP is responsible for allocating the
homeland security grants through the States to our first
responders.
I have introduced legislation that moves the Office of
Domestic Preparedness from the Border and Transportation
Security Directorate to the Office for State and Local
Government Coordination within the Secretary's office.
Do you agree that ODP should be moved out of the
Directorate that you are going to be involved with? And has
there been any discussion at DHS about this transfer?
Mr. Verdery. It is my understanding that the Bush
Administration and the Homeland Security Department officially
support your legislation and are anxious to get it moving, and
get it passed. I agree with that position.
The one thing I would add to that is ODP, while it is
within BTS, is actively working to evaluate grants, to get
money out. Billions of dollars are flowing out to first
responders through the States. And so we are actively
fulfilling our responsibilities now while supporting your
legislation to move that office to the Secretary's office.
Chairman Collins. A major project for BTS is the
development and implementation of the U.S. VISIT System. I
believe that it is very important that we secure our borders.
But, as I indicated in my earlier remarks, we must also ensure
that the United States remains open for business. And I would
be concerned if this new system were to somehow hamper the
ability of legitimate visitors and commerce to enter the United
States.
What policy issues do you believe need to be addressed to
ensure that the U.S. VISIT System, or any other entry/exit
system, would be able to do the job that it is intended for
without causing long delays or problems at our border
crossings?
Mr. Verdery. The U.S. Visit System, which is now the name
for the entry/exit system which was mandated by Congress in
several different pieces of legislation, is a top priority for
the Department and for the Under Secretary. The program office
for the U.S. Visit System reports directly to Under Ssecretary
Hutchinson as of about a month ago. I cannot think of anything
the Department spends more time on, especially the Under
Secretary, than on this issue.
As you know, the U.S. Visit entry/exit system will be
phased in over several years, with it applying to air and
seaports for the end of this year, and land entry facilities
and exit facilities in following years. That phase-in gives us
time to build systems, both hardware, software, and
infrastructure, to try to alleviate any kind of backlogs that
would be created by the checks that passengers will undergo as
they enter and exit the country.
We are working feverishly to make sure that the checks of
passengers are done quickly, that they had access to relevant
databases, and that it does not slow down traffic. Again, for
this year that means airports and seaports.
We are anxiously moving a spending plan to the Congress to
get money flowing for this year's deployment. And it is my
understanding your Committee has asked for a briefing on this
issue, and we would be happy to do that as soon as we can get
it scheduled.
Chairman Collins. Thank you.
Mr. Verdery, I recently learned that the Transportation
Security Administration has submitted a proposal to the
Appropriations Committee to reallocate some 40 percent of the
funding that is appropriated for port security grants. This is
a huge concern to me personally, and to many Members of this
Committee. We have held hearings which indicated, from many
experts, that port security remains, if not the biggest
vulnerability facing the United States, certainly one of them.
It is obviously much more difficult to secure a seaport
than an airport, and it is critical that funding appropriated
for the process of improving port security go forward. In fact,
the Coast Guard has reported that it believes it will cost more
than $4 billion to improve port security over the next decade.
TSA's proposal makes me question whether the new Department
is giving port security the priority that it clearly warrants.
I have asked Secretary Ridge for an update of the Department's
plan, but in your new position I would like to know how you
plan to ensure that port security receives the attention and
the funding it deserves?
Mr. Verdery. Madam Chairwoman, I have seen the letter you
sent to Secretary Ridge earlier this week. It is clear that the
Department is doing a lot in the area of port security,
everything from the Container Security Initiative, which
attempts to secure the large containers coming into our
country, to money that the Coast Guard is spending on grants,
to the vulnerability assessments that are being undertaken by
the Information Analysis and Infrastructure Protection
Directorate at DHS. There is a lot going on in this field.
Now you mentioned specifically the reprogramming issue, of
money at TSA for port security. It is my understanding that TSA
has spent, I believe, several hundred million dollars in port
security money over the last couple of years but that some
money is being targeted for reprogramming to meet the statutory
requirements that TSA is under in terms of aviation safety,
which is obviously a top priority of the administration and of
the Congress in light of the events of September 11.
If I am confirmed, though, I will be happy to work hard
with our budget folks to try to come up with additional
resources for port security. I will be taking a look at TSA's
spending. As you know, I was not part of the development of
last year's budget but I am anxious to get over there and begin
working on this year's and next year's budget plans.
Chairman Collins. Thank you. Senator Levin.
OPENING STATEMENT OF SENATOR LEVIN
Senator Levin. Thank you, Madam Chairman. I will try to be
relatively brief. It looks like the kids are ready for lunch,
but I do have a short opening statement as well as a few
questions of our nominees.
With this hearing, we are moving closer to a fully
functioning Department of Homeland Security. And today's
nominees, if confirmed, will play crucial roles in U.S. border
security, immigration policy, with critical implications not
just for national security but also for law enforcement,
transportation, trade, and even protecting the public's health
with issues like SARS.
It is critical that we get more top level personnel
confirmed at the Department because right now there is a lot of
confusion at the Agency, confusion about who is responsible for
what, who can answer questions, and when needed programs are
going to get underway. Here are just a few examples.
For 2 years a number of us have been pushing Customs to set
up reverse inspection programs, where for example, U.S.
personnel can inspect cars and trucks before they cross our
bridges or travel through our tunnels to enter the United
States. Clearly better for security and for alleviating traffic
congestion.
We were able to include language in the 2003 Omnibus
Appropriations Bill authorizing reverse inspections. And
Michigan, for example, is ready, willing, indeed eager to set
up a pilot program in Detroit at the Ambassador Bridge, which I
believe carries more freight across into the United States and
Canada than any other single crossing. Indeed, a large
percentage of the total imports and exports in this is our
biggest customer.
Customs has told us, DHS has told us, the Department has
told us, and Mr. Verdery, you have told us that reverse
inspections are a good idea. But after 2 years, we have yet to
get anyone to move even on a pilot program. That is difficult
to understand given the merits of the issue, the importance to
our national security and trade, why we have been unable to get
this acted upon.
Another example of confusion involves the issue of money
laundering. For years Customs has taken the lead in complex
Federal money-laundering investigations, developing an
expertise that is really unmatched in any other Federal agency.
Due to this expertise, after the September 11 tragedy, the
administration directed Customs to set up an interagency effort
called Operation Green Quest, to take the lead in identifying
and stopping terrorist financing, which often uses the same
offshore banks, wire transfers, and transfer pricing techniques
that other money-launderers use to hide drug money or the
proceeds of financial fraud.
This Committee's Permanent Subcommittee on Investigations
has conducted a number of money laundering investigations over
the years and become aware of the Customs expertise and ongoing
work in this area. So it was troubling to me to read in the
paper that the administration recently approved a plan to shift
responsibility for money-laundering from Green Quest to the FBI
section which has much less expertise.
My concerns are that we are throwing away expertise that
took literally decades to develop, and that we might lose
ground not only on terrorist financing investigations, but also
money laundering investigations in narcotics trafficking and
financial fraud.
It is also unclear who at the Department has money-
laundering issues as part of his or her portfolio. Mr. Garcia,
I know you have experience in money-laundering prosecutions and
care deeply about this issue, but I do not know if you will
have the responsibility for this issue.
Another example of confusion involves Canadian waste
issues. Every day about 180 trucks come across the bridge from
Canada into Michigan with Canadian waste--180 trucks a day,
filling our landfills with Canadian trash. After September 11,
we pointed out the security risk of allowing large trash trucks
to do this with minimal inspections. I think all of us can
picture a scenario in which trash trucks are used by terrorists
to hide weapons, laundered funds, or hazardous materials like
radioactive waste.
Now in January 2003, Customs issued a new directive
changing its practice and requiring additional inspection for
trash trucks. But then a month later it reversed course and
restored the practice of classifying trash trucks as low risk
imports, requiring minimal inspection.
I, along with Senator Stabenow and Congressman Dingell,
sent a letter to Customs asking what happened, but we have 4
months later not yet received even a response, which I assume
is more evidence of confusion.
One last example of confusion was reported to me by my
Detroit office. It used to be that when we had immigration
problems, my office would call the Detroit INS officials to get
an answer. Now they are told they have to call Washington. We
do not know why.
Confusion obviously cannot be totally avoided when
establishing a huge new agency like the Department, but it also
needs to be tackled. I know that you two will be playing an
instrumental role in trying to eliminate that confusion.
I think I have run out of time. Shall I ask a few
questions?
Chairman Collins. If you would like to proceed with your
questions, feel free.
Senator Levin. As I have said, Congress authorized the
creation of integrated border inspection areas between the
United States and Canada. These areas could include conducting
shared border inspection or reverse customs inspection at U.S.-
Canadian border crossings. So our Customs officers in Canada
could protect our bridges and tunnels and also would enhance
and facilitate trade.
In your answers to questions submitted to you before this
hearing, Mr. Verdery, you stated that reverse inspections are a
good thing, and that is good to hear but some of us have been
hearing that for the last 2 years.
Now we are just wondering what is it going to take to get
this thing accomplished? Is it ready to be acted upon?
Mr. Verdery. It is my understanding, as you said, Senator
Levin, that the administration does support the concept of
reverse inspection, that there have been ongoing discussions
with the Canadian Government through our Customs Service and
now BCP.
The hang up, as I understand it, is that there are some
very tricky legal questions, largely on the Canadian side, with
interpretations of Canadian constitutional measures.
In my view, this is the type of issue that is a perfect
issue for a new policy office within BTS to become involved in,
and I look forward to working on it. In fact, I would love to
come up and visit Ambassador Bridge and see exactly how that
would play out, with a reverse inspection zone, in your State.
Senator Levin. We would love to have you there, but the
Canadians have been looking at this for a long time. We need an
answer. So we would love to have you there, we look forward to
having you there, but we also look forward to the Canadians
being told--since there is a river there, I should say fish or
cut bait. But we need an answer from the Canadians on this.
Mr. Verdery. I will try to bring answers along with my
luggage.
Senator Levin. That would be great. Do you know whether we
have officially asked Canada to set up that pilot program?
Mr. Verdery. I do not know if it has been officially made.
I would be happy to get back to you.
Senator Levin. Would you let us know that?
Our Chairman asked whether or not the recent IG report was
read by you. And I think, Mr. Verdery, you commented on her
question. I was talking to my staff and may not have heard.
Chairman Collins. Mr. Garcia was the one who commented.
Senator Levin. Thank you, Madam Chairman.
I think that our Chairman asked questions about whether you
are going to be taking steps to implement some of the
suggestions in the report. My question is a little bit
different because I was troubled by these findings, especially
where the Inspector General pointed to systemic failures by the
Department of Justice to adhere to the concepts of fairness and
justice.
Perhaps what was most disturbing was the clear violation of
the civil rights of individuals that I raised with officials at
the Department of Justice over a year ago. Examples of harsh
treatment from several agencies including the Immigration and
Naturalization Service, were common. A majority of detainees
were not provided with the timely opportunity to contact a
lawyer. Some detainees were held as long as a month before
being presented with charging documents. Other detainees were
unable to contact their families because of a ``communications
blackout.'' Several detainees were physically and verbally
abused with some being confined to their cells for 23 hours a
day.
Rather than my commenting on it beyond that, I would like
to ask for your reaction to the report. Why don't both of you
give me your reaction?
Mr. Garcia. As the report makes clear, it was an
unprecedented time in the Nation's history. That being said,
there are certainly findings in that report that are troubling.
As you mentioned, particularly so are any allegations of
mistreatment of detainees within the U.S. system. Particularly
they looked at two institutions, I believe, in that process,
one which was a contracting facility for the INS at that time.
I think those issues have to be addressed. My understanding
is we have a regulation going through the process now that
would make that more of a formal procedure. I would note that
in the report, with respect to that Passaic facility, they did
find that within that facility detainees were provided with
access to counsel and were provided presentations by groups
outlining their rights within the system.
They did conclude that the INS needed to do a better job of
regularly inspecting and visiting the facility. We are, as I
said, working with a regulation to make that procedural
requirement.
I think it is a timely report. Clearly, it is the
responsibility of the IG to look at these issues and to make
the recommendations, the difficult issues, and ones we are
committed to addressing with the IG and with our colleagues in
DHS and Department of Justice.
Senator Levin. Madam Chairman, I am wondering if it would
be in order for me to request that after Mr. Garcia's
confirmation, a reasonable period of time, perhaps 60 or 90
days, that he give us a report on the steps taken in response
to that report?
Chairman Collins. I think that would be helpful and I would
be happy to join in making that an official Committee request.
Senator Levin. Any comment, Mr. Verdery, on that?
Mr. Verdery. Senator, as we know, the activities that took
place, that are the subject of that report, came when INS was
part of the Department of Justice and many of the issues raised
in the report were based on decisions taken by the Attorney
General or the Deputy Attorney General. Some of those were a
matter of discretion.
Now that INS has been split up and has been moved into DHS
and into these various parts, a number of those points of
discretion now will sit with the Secretary. And I am very much
looking forward to continuing to read the report, I have seen
the Justice Department's response to it, and slogging through
what were apparently some very difficult legal questions and
discretionary decisions made by the head of the agency, who is
now Secretary of Homeland Security.
I met yesterday with our new Officer for Civil Rights and
Civil Liberties to discuss this. And I know that the
regulations that were discussed will be moving through BICE,
then BTS and DHS. And so it would be a timely report for us to
issue to you all within a few months.
Senator Levin. Thank you. I have two final questions. My
red light has been on a long time.
Chairman Collins. It has. Go right ahead.
Senator Levin. Thank you. Just two final questions.
I want to describe a couple of hundred trash trucks coming
into our State with Canadian trash which is a security issue.
It is an environmental issue, as well, but a security issue,
that is the relevance to your positions.
We sent a letter to Mr. Bonner about this, the we again
being Senator Stabenow, Congressman Dingell and I, in January.
We have not received a response.
First of all, did we send it to the right person? Customs
is now split up. We have a Bureau of Immigration and Customs
Enforcement and we have a Bureau of Customs and Border
Protection. Mr. Bonner has got the Bureau of Customs and Border
Protection. And Mr. Garcia, I think you are Acting Secretary
already of the Bureau of Immigration Customs Enforcement. Did
we send it to the right place, first of all? Should we have
sent it to you?
Mr. Garcia. Yes, you did.
Senator Levin. Is that because you would rather it go
there, or it should go there.
Mr. Garcia. Actually Senator, it is obviously a very
serious matter. Commissioner Bonner, formally Commissioner of
the U.S. Customs Service, now head of BCBP, is responsible for
the inspection issues at the border. We are committed to
working with him on any issues that we can be helpful.
Obviously, I am happy to go back to him and raise this
particular issue with them.
Senator Levin. If it is in the right place, we will
continue to raise it with him ourselves. We appreciate the
offer, but we cannot pile that on you, as well.
Mr. Garcia, just on the money-laundering responsibilities,
will the anti-money-laundering responsibilities be part of your
portfolio?
Mr. Garcia. Absolutely, Senator. As you mentioned earlier,
I believe, I had experience as a prosecutor doing money-
laundering cases. I recognize what an incredibly important and
powerful tool that is in the counter-narcotics, counter-
terrorism broad spectrum of crimes.
The money-laundering expertise in what was Customs
investigations, I agree, unmatched in their ability to apply
their tools and authorities they have, in this way, to the
crimes within their jurisdiction.
You mentioned an agreement we have with the FBI. It is a
division of responsibilities agreement. It provides that going
forward there is formal coordination. There is exchange of high
level management positions. We cannot afford to be duplicating
efforts.
But we cannot afford to lose any of the expertise in our
program. We are not sending our agents to the FBI that were
doing Green Quest, or sending them to the task force. We will
continue with a robust financial money-laundering program that
looks at the vulnerabilities that BICE is uniquely qualified to
address. You are familiar with them, bulk currency transfer,
black market peso, looking at the hubs in Atlanta and other
places where currency is being exported in violation of our
law.
This is uniquely Homeland Security jurisdiction. We are
committed to it. I personally can give you my commitment that,
if confirmed, this will be one of my top priorities to not only
maintain that expertise but to go forward with it as part of a
new agency in an even more effective manner.
Senator Levin. Thank you. Thank you both. We look forward
to your confirmation. I hear you are both well qualified for
these positions, and we all need your help. Thank you.
Chairman Collins. Thank you, Senator Levin.
Mr. Verdery, it has been recently reported that TSA has
hired some screeners with criminal backgrounds. This is
extraordinarily troubling to those of us who thought that the
Federal Government's take over of the screening process would
ensure high-quality screeners with clean backgrounds.
According to the Washington Post, for example, at the Los
Angeles International Airport, airport officials have learned
that six TSA screeners admitted to serious felonies on written
questionnaires, including felony gun possession and assault
with a deadly weapon.
What specific steps are you going to take to ensure that
this problem does not reoccur, and that the employees not only
receive adequate background checks but that someone pays
attention to the results before they are hired?
Mr. Verdery. It is my understanding that, as TSA was being
stood up and hiring an unprecedented number of screeners, close
to 50,000 within about a 10-month span, they put in an
innovative methods to do background checks. it is my
understanding that over 97 percent of the screeners that were
eventually hired, had that fingerprint check.
Now we know that a number of people, as the checks came
back in, were found to have disqualifying criminal histories.
Those were fired, several hundred, I believe, close to 1,000.
But again, over 98 percent have had background checks and are
actively on the job with no criminal problem.
Chairman Collins. Given the size of the workforce, if you
have 2 percent that are still slipping through the process with
criminal backgrounds, that 98 percent figure is not of much
comfort to me.
Mr. Verdery. I believe, as Admiral Loy testified in the
house earlier this week, the 2 percent is not 2 percent with
criminal background in their history. It is 2 percent who did
not have the check. So they are actively rushing to finish
those 2 percent that did not have a full check when they were
originally hired.
Now you asked, as a matter going forward, we should not
have a similar problem because all new applicants are going
through full checks before they are hired. So this is an issue
of trying to clean up around the margin where people fell
through the cracks when TSA was rushing to hire close to 50,000
people.
So I think this is a problem that is going to be solved
within the summer, and people can have complete confidence that
the screeners that are on the job do not have any kind of
disqualifying criminal background history.
Chairman Collins. Another issue that has arisen with TSA is
the Department's plan to lay off some 6,000 airport screeners
by September 30. I know, in the case of the plans for the
airport in Portland, Maine, that the reductions proposed did
not take into account that there was a third screening lane and
that the airport was entering its peak travel season, as those
of you who go to Maine in the summer are well aware.
I am very pleased that in response to my request, TSA is
reconsidering its plan for Portland's airport, but I am
concerned about how this happened in the first place. Could you
share with us what approach you are going to take to make sure
that TSA does have adequate staff to do the job and to take
into account travel fluctuations, as well as the need to avoid
inordinate delays for passengers?
Mr. Verdery. As you know, I was not part of the original
decisionmaking. And as you mentioned, it is my understanding
that TSA is revising the screener reduction by airport in
response to reanalysis and other factors, and I believe that is
going to be announced shortly.
Again, TSA is trying to respond to changes in passenger
traffic and also to a decision to go to a different type of
philosophy where they are going to have more roving law
enforcement officers throughout the airport and fewer standing
at particular check-lines. So that new philosophy is going to
allow them to have some cutbacks without sacrificing the world-
class security and world-class services that they are trying to
achieve.
So I am anxious to get on the job, work with TSA on their
screening plan. As you know, they do face a budget shortfall
and so they are trying to be as prudent with the taxpayer's
money as they can with the screener program without sacrificing
any kind of safety in Maine's airports or anywhere else.
Chairman Collins. Finally, I want to ask you a question
about the CAPPS Program, which is the Computer Assisted
Passenger Pre-screening System. As I understand the CAPPS-II
program, it will use commercial and classified databases to
select which passengers should be subjected to heightened
scrutiny before they board aircraft. Is that essentially
correct?
Mr. Verdery. Yes. CAPPS-II is trying to accomplish two
different things at the same time before a passenger would
board a plane. One is using commercial sources to do an
identity verification. Is the person trying to buy the ticket
the person they say they are? And they are using all kinds of
commercial databases to do that identity verification. Second,
CAPPS-II will also generate a risk assessment score that a TSA
employee could review until the information is deleted which
will be after the person flies. There is no bleed over into
other types of checks. No one has any clue what the information
is other than the risk assessment score.
Second, CAPPS-II is trying to perform a risk analysis of
the individual using intelligence information to compare versus
a person who is attempting to fly. As you know, a lot of that
information is classified. We would be happy to sit down with
you in a more appropriate setting and go through some of those
measures. But that is the basics of what CAPPS-II is trying to
achieve.
Chairman Collins. If properly implemented, I could see
where CAPPS-II could be very helpful in focusing attention on
passengers that should be subjected to increased screening and
scrutiny, and that should make travel easier for the low-risk
passenger ideally.
However, if the databases on which the new system will rely
contain faulty or incomplete or inaccurate information, the
possibility is high that passengers could be selected for
increased scrutiny who do not deserve that kind of risk
analysis. I think any of us who have ever had problems with
inaccurate information being reported on a credit report, for
example, or with identity theft are very much aware of the
potential pitfalls of this approach.
How are you going to ensure that the information on which
CAPPS is relying is adequate and accurate, as well?
Mr. Verdery. The CAPPS-II system will be relying on a
number of commercial databases not a single source.
Furthermore, if a person has inaccurate information in his
credit reports, as happens frequently, the fact that that is in
somebody's report will not affect his ability to fly. Obviously
it is a separate issue for him, but it is not going to affect
his ability to fly, the fact that there is inaccurate
information in their report.
Obviously, TSA needs to work and make sure that they pick
the best commercial databases available, and I am happy to sit
down and work with TSA to make sure that CAPPS-II is designed
properly, if I am confirmed.
As you mentioned, the goal is to make it much easier for
the large majority of passengers to board with no delay. As you
know, currently people are selected for enhanced screening
based on a number of factors. This should make it much more
narrowly tailored who is selected for the additional screening,
based on that identity verification or risk analysis score.
Chairman Collins. The final caution that I would give to
you on the program is that many of us are concerned about the
Federal Government aggregating large databases with personal
information on law-abiding Americans. That is just contrary to
the heritage of our country, with its respect for individual
privacy. I think this is an area where we have to proceed with
a great deal of caution in order to respect the privacy rights
of law-abiding Americans.
Mr. Verdery. We agree with that completely. The Chief
Privacy Officer of the new Department has been involved on a
day-to-day basis with how the CAPPS-II system is being
developed. Remember, this is still a year away from full
deployment. The Secretary has said it will not be deployed
until she approves it. And I think she feels comfortable where
this is going, remembering that the commercial information that
is being accessed is a one-time hit. You have a score, it is
checked. You are either sent onto the plane or given secondary
screening, and then that score vanishes. The next time you fly,
on a separate trip, that prior score has no interaction. It is
just a one-time check. There is no retention of the data once
your flight plan is completed.
Chairman Collins. Thank you, Mr. Verdery.
Mr. Verdery, Mr. Garcia, I want to thank you both for your
testimony today.
I also want to thank you for your willingness to serve your
country. It is a sacrifice for many families to enter the
public arena, and we need people with your ability, your
integrity, and your commitment to be willing to serve in
Federal Government. So I want to express the gratitude that I
feel toward both of you for your willingness to serve.
It is my hope that we can move very expeditiously on both
of your nominations to get you confirmed quickly by the full
Senate, and on the job as soon as possible.
Without objection, the hearing record will be kept open
until 5 p.m. today for the submission of any written questions
or statements for the record. This hearing is now adjourned.
[Whereupon, at 11:51 a.m., the Committee was adjourned.]
A P P E N D I X
----------
PREPARED STATEMENT OF SENATOR WARNER
Chairman Collins, and my other distinguished colleagues on the
Senate Governmental Affairs Committee, it is my honor to come before
the Committee today and introduce Stewart Verdery to serve as the first
Assistant Secretary for Policy and Planning at the Border and Security
Directorate at the Department of Homeland Security.
I am pleased to welcome his family and friends in attendance today,
including his wife Jenny, his children Isabelle and Chase, and his
parents, Charles and Linda Verdery.
Mr. Verdery has a vast and distinguished career in public and the
private sector. I know that with his strong leadership skills,
meritorious academic and professional credentials, Mr. Verdery will be
an asset to the Department and its mission to protect the nation
against further terrorist attacks.
The Border and Transportation Security Directorate, where Mr.
Verdery currently serves as a Senior Advisor to Under Secretary Asa
Hutchison, is the largest of the Departments five major divisions. Many
new and unforeseen challenges lie ahead for this Directorate.
I am a personal witness to the abilities of Mr. Verdery. During his
service as Counsel on the Senate Rules Committee when I served as
Chairman, he adeptly directed a challenging investigation of the
contested 1996 Louisiana Senate election.
As Counsel on the Committee, he was also responsible for drafting
some of the initial versions of campaign finance reform legislation.
Many of the concepts from his work are reflected in the campaign
finance legislation enacted in 2002.
With his experience on the Senate Judiciary Committee, serving as
lead Counsel for the Crime and Drug Policy Unit, Mr. Verdery is aware
of the intricate complexities of dealing with security of our nation's
borders and transportation infrastructure.
I look forward to working with Mr. Verdery as he takes on this new
task in public service. I commend his qualifications to you and urge
the Committee's favorable consideration of his nomination.
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