[Senate Hearing 111-979]
[From the U.S. Government Printing Office]
S. Hrg. 111-979
NOMINATION OF JANE HOLL LUTE
=======================================================================
HEARING
before the
COMMITTEE ON
HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
of the
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
----------
NOMINATION OF JANE HOLL LUTE TO BE DEPUTY SECRETARY, U.S. DEPARTMENT OF
HOMELAND SECURITY
MARCH 26, 2009
----------
Available via the World Wide Web: http://www.fdsys.gov
Printed for the use of the
Committee on Homeland Security and Governmental Affairs
NOMINATION OF JANE HOLL LUTE--2009
S. Hrg. 111-979
NOMINATION OF JANE HOLL LUTE
=======================================================================
HEARING
before the
COMMITTEE ON
HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
of the
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
__________
NOMINATION OF JANE HOLL LUTE TO BE DEPUTY SECRETARY, U.S. DEPARTMENT OF
HOMELAND SECURITY
MARCH 26, 2009
__________
Available via the World Wide Web: http://www.fdsys.gov
Printed for the use of the
Committee on Homeland Security and Governmental Affairs
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COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware JOHN McCAIN, Arizona
MARK L. PRYOR, Arkansas GEORGE V. VOINOVICH, Ohio
MARY L. LANDRIEU, Louisiana JOHN ENSIGN, Nevada
CLAIRE McCASKILL, Missouri LINDSEY GRAHAM, South Carolina
JON TESTER, Montana
ROLAND W. BURRIS, Illinois
MICHAEL F. BENNET, Colorado
Michael L. Alexander, Staff Director
Kristine V. Lam, Professional Staff Member
Jason M. Yanussi, Professional Staff Member
Brandon L. Milhorn, Minority Staff Director and Chief Counsel
Jennifer L. Tarr, Minority Counsel
Eric B. Cho, Minority GSA Detailee
Trina Driessnack Tyrer, Chief Clerk
Patricia R. Hogan, Publications Clerk and GPO Detailee
Laura W. Kilbride, Hearing Clerk
C O N T E N T S
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Opening statements:
Page
Senator Lieberman............................................ 1
Senator Collins.............................................. 3
Senator Akaka................................................ 14
Senator Coburn............................................... 17
Senator Voinovich............................................ 19
Senator Burris............................................... 21
Senator Landrieu............................................. 23
WITNESSES
Thursday, March 26, 2009
Hon. Michael R. Bloomberg, Mayor, City of New York, New York..... 5
Jane Holl Lute to be Deputy Secretary, U.S. Department of
Homeland Security.............................................. 7
Alphabetical List of Witnesses
Bloomberg, Hon. Michael R.:
Testimony.................................................... 5
Lute, Jane Holl:
Testimony.................................................... 7
Prepared statement........................................... 39
Biographical and financial information....................... 43
Responses to pre-hearing questions........................... 58
Responses to pre-hearing questions for the Record from:
Senator Collins............................................ 165
Senator Coburn............................................. 179
Letter from the Office of Government Ethics.................. 194
Responses to post-hearing questions for the Record from:
Senator Collins with an attachment......................... 195
Senator Coburn with attachments............................ 229
Senator Voinovich with an attachment....................... 339
Senator Graham............................................. 428
APPENDIX
Letters of Support from:
Robert M. Appleton, Former Chairman, United Nations
Procurement Task Force..................................... 430
Leroy D. Baca, Sheriff, County of Los Angeles, California.... 432
Christopher B. Burnham, Former Under Secretary-General of the
United Nations and Former Chief Financial Officer and
Assistant Secretary of State............................... 434
Lee H. Hamilton, President and Director, Woodrow Wilson
International Center for Scholars.......................... 436
Chief Larry J. Grorud, President, International Association
of Fire Chiefs............................................. 437
Robert L. Davis, Chief of Police, San Jose, California, and
Vice President, Major Cities Chiefs Association............ 438
Susan McLurg, Chairman, United Nations Advisory Committee on
Administrative and Budgetary Questions..................... 439
David A. Goad, Sheriff and President, and Aaron D. Kennard,
Executive Director, National Sheriffs' Association......... 441
Nancy J. Dragani, President, National Emergency Management
Association................................................ 443
HRH Prince Zeid Raad Al Hussein, Ambassador of Jordan........ 444
Jasmine Whitbread, Chief Executive, Save the Children UK..... 446
Mary Fetchet, Founding Director, and Frank Fetchet, Director,
Voices of September 11th................................... 448
OIOS reports submitted for the Record by Senator Coburn.......... 449
NOMINATION OF JANE HOLL LUTE
----------
THURSDAY, MARCH 26, 2009
U.S. Senate,
Committee on Homeland Security
and Governmental Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 10:05 a.m., in
room SD-342, Dirksen Senate Office Building, Hon. Joseph I.
Lieberman, Chairman of the Committee, presiding.
Present: Senators Lieberman, Akaka, Landrieu, Burris,
Collins, Coburn, and Voinovich.
OPENING STATEMENT OF CHAIRMAN LIEBERMAN
Chairman Lieberman. Good morning and welcome to the
nomination hearing of Jane Holl Lute to be Deputy Secretary of
the Department of Homeland Security (DHS). We welcome you, Ms.
Lute, and there is a familiar looking gentleman behind you in
uniform. I know your husband, General Doug Lute. The two of you
have really given extraordinary service to our country, and I
thank you both very much for that. I am also glad to welcome
the other people who are behind you and here to support you.
You have extraordinary credentials, really a remarkable
professional history and very broad national security and
management experience. It is really hard to imagine somebody,
in my opinion, better suited to become Deputy Secretary of
Homeland Security than you are based on the range of
experiences you have had.
You have earned five degrees, including a Ph.D. and a law
degree. You have had a distinguished career in the military,
served as the European specialist at the National Security
Council during the first Bush and Clinton Administrations, and
spent 3 years as a professor at West Point. That is quite a
record.
As Assistant Secretary-General of the United Nations (U.N.)
for the past several years, you have managed a large and
complex Peacekeeping force with responsibility for hundreds of
thousands of military and civilian personnel in over 30
countries, including real hot spots, trouble spots, such as
Kosovo, the Congo, and Darfur. This was no small
accomplishment. Your leadership has helped to ensure the
security and welfare of countless people around the globe.
Managing the Department of Homeland Security, as you well
know, is also a demanding job which requires a strong, steady,
and smart hand, heart, and head. The Deputy Secretary position
carries with it diverse responsibilities, ranging from
overseeing efforts to prevent and, if necessary, respond to a
weapon of mass destruction (WMD) attack to ensuring on an
entirely different level that the employees of this Department
have adequate office space in which to serve our country.
As you know, the Department of Homeland Security has worked
hard, sometimes struggled, to gain solid footing over the
course of its short life. But I believe, and I am happy to
note, that each year, it has become stronger, and I do not
think there is any question that the country is safer as a
result of the Department's efforts. But the Department is still
not where we want and need it to be, and I am confident that
your leadership will help us get there.
I am going to ask that the rest of my remarks be put in the
record as if read and call now on our distinguished Ranking
Member, Senator Collins.
[The prepared statement of Chairman Lieberman follows:]
PREPARED STATEMENT OF SENATOR LIEBERMAN
Good morning and welcome to the nomination hearing of Jane Holl
Lute to be Deputy Secretary of the Department of Homeland Security.
Welcome, Mrs. Lute. We're happy to have you before us today.
Mrs. Lute, you have outstanding credentials, a remarkable
professional history, and broad national security and management
experience, all of which is more than ample training for the position
to which you have been nominated.
You have earned five educational degrees--including a Ph.D. and a
law degree--have had a distinguished career in the military, served as
the European specialist at the National Security Council during the
first Bush and Clinton Administrations, and spent 3 years as a
professor at West Point.
As Assistant Secretary-General of the United Nations for the past
several years, you have managed a large and complex Peacekeeping
workforce, with responsibility for hundreds of thousands of military
and civilian personnel in over 30 countries, including hotspots such as
Kosovo, the Congo, and Darfur, to name just a few. This was no small
accomplishment. Your leadership has helped to ensure the security and
welfare of people around the globe living in unaccommodating and
hostile circumstances.
Managing the Department of Homeland Security is also a demanding
job, which, much like the U.N., requires a smart and steady hand. The
Deputy Secretary post carries with it diverse responsibilities that
range from overseeing preparations to respond to a nuclear terrorist
attack to ensuring that DHS employees have adequate office space.
As you know, the Department of Homeland Security has struggled to
gain solid footing over the course of its short life. Each year it
becomes stronger, I am happy to note. And I do not think there is any
question that the country is safer as a result of the Department's
efforts.
But the Department has a difficult and varied mission and its work
is central to the security of all Americans. So, we must continue to
press forward to improve upon its capabilities.
I am working to draft the Senate's first authorization bill for the
Department as a means of laying out what I believe should be its
priorities and to make the Department more efficient and effective in
its missions. Needless to say, we will be seeking input from the
Administration.
I do want to take a moment to mention a couple of my greatest
concerns. One of the biggest problems the Department faces is its
management of acquisitions. Some of the Department's largest and most
troubled acquisition programs--Deepwater, SBINet, radiation detection
portal monitors--need stronger oversight and more decisive leadership
than they have gotten in the past.
Furthermore, the Department's heavy reliance on contractors to
perform basic services raises serious questions about whether DHS is
building sufficient internal capacity and institutional knowledge.
Right now, DHS still has insufficient capacity to develop requirements
and evaluate the technical feasibility of contractors' proposals. I
look forward to hearing your plans for improvement in this area.
The Department's new initiative to strengthen the security of
Federal information technology systems--the Comprehensive National
Cybersecurity Initiative--is another project critical to the security
of the American people that I have been overseeing with great interest.
Given the Administration's emphasis on transparency, I hope you will
encourage increased openness and information sharing with Congress, the
private sector, and the American public on this key project to ensure
that it is a success.
Clearly, as the Administration's announcement and the Secretary's
travel schedule this week indicate, southern border security has become
a central focus for the Department. I intend to request additional
resources and personnel for Customs and Border Protection and
Immigration and Customs Enforcement to help stem the flow of drugs and
people moving north into the United States and guns and money moving
south into Mexico. I look forward to a close collaboration with the
Department in this area.
As you know, there are many other challenges facing the Department
that must be met and conquered if DHS is to succeed in its ultimate
mission of protecting the Nation from terrorism and natural disasters.
This Committee has always worked cooperatively with the Department and
will continue to do so to ensure its success.
If confirmed, you will play a large part in setting the Department
on course to overcome these challenges. Again, thank you for your many
years of service, and I hope you will serve your Nation for many more.
OPENING STATEMENT OF SENATOR COLLINS
Senator Collins. Thank you, Mr. Chairman. I want to join
the Chairman in welcoming Jane Lute to our Committee today as
we consider her nomination to be Deputy Secretary of the
Department of Homeland Security. It is certainly a credit to
her that Mayor Bloomberg has taken the time from his busy
schedule to travel to Washington to introduce her today, and it
is certainly a testament to her that she has such strong
support from our Nation's leading first responder
organizations.
The Deputy Secretary of DHS wields considerable power over
the day-to-day operations of the Department. The Deputy has
historically played an important role in the management of the
Department, from acquisition policy to personnel management.
These responsibilities are in addition to the many other
challenges associated with the operation of a Department with
some 210,000 employees and a mission to secure our borders, to
protect our Nation's critical infrastructure, and to help
prevent, prepare for, and respond to all hazards.
Last year alone, the Department spent more than $14 billion
in contracts for goods and services, and the Department has
encountered significant challenges in managing those contracts,
particularly in the area of information technology. The
Chairman and I, along with other Members of this Committee,
have worked hard to strengthen and reform Federal contracting
laws, but strong management is also required.
Ms. Lute has experience dealing with the troubled
acquisition process at the United Nations. I will be asking her
this morning about that experience and in particular whether a
non-competitive contract award could have been avoided through
better planning.
I would note that Ms. Lute does have extraordinary
experience in resolving interagency conflicts. DHS gets
involved in those types of conflicts all of the time, and I
look forward to discussing that issue with her, as well.
The protection of our Nation's critical infrastructure, the
reauthorization of port security and chemical facilities
security laws, and emerging threats will also be important
priorities for the next Deputy Secretary.
I am going to follow the Chairman's lead and ask that my
entire statement be entered into the record so that we can hear
from the Mayor of New York City, who I know has a busy
schedule. So, Mr. Chairman, I am going to follow your lead, but
I do look forward to questioning our witness today for this
very important post.
[The prepared statement of Senator Collins follows:]
PREPARED STATEMENT OF SENATOR COLLINS
I join the Chairman in welcoming Jane Holl Lute to our Committee
today as we consider her nomination to be Deputy Secretary of the
Department of Homeland Security. It is a credit to her that Mayor
Bloomberg has taken the time to introduce her today and that she has
strong support from our Nation's first responder organizations.
The Deputy Secretary of DHS wields considerable power over the day-
to-day operations of the Department. The Deputy has historically played
an important role in the management of the Department--from acquisition
policy to personnel management. These management responsibilities are
in addition to many other challenges associated with the operation of a
Department with 210,000 employees and the mission to secure our
borders, protect our Nation's critical infrastructure, and to help
prevent, prepare for, and respond to all hazards.
Last year alone, the Department spent more than $14 billion in
contracts for goods and services. The Department has faced significant
challenges in many of its major acquisition programs, particularly in
information technology programs. These acquisitions will need immediate
and frequent attention from the Deputy Secretary to get them on track.
Senator Lieberman and I have been strong advocates for reforms that
have resulted in greater competition, accountability, and transparency
to Federal contracting. Strong management, however, is also required.
Ms. Lute has experience dealing with a troubled acquisition
process, such as the intensely criticized one at the United Nations. I
will be asking her about this experience, including whether a non-
competitive award requested by the U.N. Department of Field Support
could have been avoided through better planning.
From her time at the National Security Council and the U.N., Ms.
Lute also has experience resolving interagency conflicts within the
U.S. Government and disputes between foreign governments and other
stakeholders. If she is confirmed, Ms. Lute will need all these skills,
and more, as she attempts to forge consensus and close collaboration
among the Department's components. She will have to ensure that the
Department's views and equities are forcefully represented in
interagency negotiations with the dozens of departments and agencies
that play a role in our Nation's homeland security efforts.
The protection of our Nation's critical infrastructure from
emerging threats will also be an important priority for the next Deputy
Secretary. Among the significant challenges in this area are the need
to enhance security at the Nation's biological laboratories and
throughout our cyber-infrastructure. Laws that I co-authored to improve
the security of seaports and chemical facilities will need to be
reauthorized during this Congress.
The next Deputy Secretary will also play a key role in the
Department's emergency preparedness efforts. The Deputy must have a
close collaborative relationship with the FEMA Administrator, so that
FEMA continues to work well within DHS to ensure that as a Nation we
are prepared for the next major disaster, whether natural or man-made.
Planning, training, and exercising are important areas in which DHS has
made much progress but still has more work to do. The Deputy Secretary
must also ensure that its many partners at the State and local level
and in the private sector are fully involved with DHS initiatives.
I look forward to working with the Secretary and the next Deputy
Secretary to continue to strengthen the Department.
Chairman Lieberman. Thanks very much, Senator Collins.
It really is a great honor to welcome Mayor Bloomberg here.
It is most unusual and, I think, speaks to the extraordinary
qualities of the nominee.
The term ``great American'' is tossed around here a lot,
but in my opinion, Mayor Bloomberg really is a great American.
Mr. Bloomberg. My mother agrees with you. [Laughter.]
Chairman Lieberman. Yes. Actually, she wrote my
introduction. [Laughter.]
Chairman Lieberman. Why? Because he speaks to all the
opportunity that America offers. He has obviously been an
extraordinary success as a result of very hard work and great
creativity, and he then has given back enormously to our
country, both in terms of the fruits of his success and an
extraordinary history of philanthropy, but also in taking on
the tough job of being Mayor of New York City and doing it with
great success, to the benefit of the city.
I am proud to call him a friend. I am honored to introduce
him now. I hope I do not offend anybody else if I introduce you
as America's Mayor.
TESTIMONY OF HON. MICHAEL R. BLOOMBERG, MAYOR, CITY OF NEW
YORK, NEW YORK
Mr. Bloomberg. You are nice to say so. Thank you, Senator.
Mr. Chairman, Ranking Member Collins, Senator Akaka, Senator
Coburn, Senator Voinovich, thank you for having me and good
morning.
Usually these days, it seems like mayors and other
executives come before Congress asking for something. Today, I
am pleased to actually be bringing you something instead, the
President's sterling nominee for Deputy Secretary of the U.S.
Department of Homeland Security, Jane Holl Lute.
With more than 30 years of experience, ranging from the
highest levels of government to the heart of international
conflict, Ms. Lute really does have a deep understanding of
what it takes to secure our homeland and protect us against
terrorism. I have long known of Ms. Lute's reputation and have
come to know her personally in the last few years. During that
time, it has become abundantly clear to me that she really is a
dedicated public servant, a skilled manager, and a visionary
thinker, and she is precisely the kind of leader that I think
we need at the Department of Homeland Security.
I am sure Ms. Lute's background is well known to Members of
this Committee. She began her career in public service as an
officer in the U.S. Army and was deployed to the Gulf during
Operation Desert Storm, where she served on Central Command
staff. She went on to serve two Presidents at the National
Security Council, and she more recently served as the Assistant
Secretary-General of the United Nations.
At United Nations Peacekeeping, she ran operations support
for the second-largest deployed military presence in the world.
She has led and developed the most significant reform and
realignment of U.N. headquarters operations since the U.N.
Department of Peacekeeping Operations was established in 1992.
She consolidated business practices and strengthened existing
structures to meet field demands that have quintupled over the
past decade. She also effectively managed the growth of United
Nations Peacekeeping from a $1.8 billion endeavor to a nearly
$8 billion operation.
Now, I realize that some have questioned the effectiveness
of the United Nations, but to me, there is no question about
the competency, leadership, and judgment of Jane Holl Lute. She
brings to this job a lifetime of experience confronting the
issues at the core of the Department's mission. She has managed
crisis and emergency support, operations in some of the most
difficult and dangerous places in the world, including Sudan,
Timor, Congo, and the war in Lebanon.
There is no doubt that she will bring to the Department a
deep and broad understanding of what it takes to effectively
prepare for and rapidly respond to emergencies and
contingencies of all kinds, and that is of particular concern
to the citizens of New York, who have experienced the pain and
devastation of terrorism firsthand.
Every day, we depend on a strong line of defense involving
Homeland Security, the Coast Guard, Customs and Immigration,
and have a strong partnership between our Federal Government,
State Government, and our local government, and we simply just
cannot afford to let our guard down. And with Ms. Lute as part
of the executive team, I am confident that we will not.
Mr. Chairman, Members of the Committee, thank you for the
opportunity to share my unconditional support for this
phenomenally talented nominee. As Mayor of New York City, I
know what it takes to manage a crisis, and I am confident that
she really does have the management skills and the dedication
and the willingness to serve this country that we desperately
need.
She is a lifelong public servant, a strong and tested
leader. She knows how to get things done, and my admiration is
not just for her, but for her family. We all talk about service
to this country. Both Ms. Lute and her husband have devoted
their lives to service to this country, and I just wish we had
more role models like them. It is a family that all of us
should admire and try to copy, and I am just extremely proud
and deeply supportive of the President's nomination for her for
this critical position, and I would certainly urge you to
consider it carefully.
We need experience in this agency. We need dedication. We
need somebody who is willing to be accountable and knows how to
get things done. Jane Holl Lute is all of those things.
I am going to head back to New York and make sure that the
city is still there. Senator Coburn, you have a child there, as
I remember.
Senator Coburn. I do.
Mr. Bloomberg. I am going back just to take care of her.
Senator Coburn. I am very appreciative of that. [Laughter.]
Mr. Bloomberg. And my daughters, as well.
Thank you very much for your consideration. This is as good
an appointment as I think has ever come before Congress. She
has all the skills for this job, and I would just urge you to
consider it very carefully, and thank you for your time.
Chairman Lieberman. Mayor, thanks a lot. Your endorsement,
your introduction means a lot to us on the Committee. You have
a lot of experience with people working for you and with you,
so your willingness to come here to testify on behalf of Ms.
Lute really means a lot.
I was thinking as you were speaking, your presence here
means a lot to me because when you are here, it greatly
increases the number of elected officials who are Independents.
[Laughter.]
Mr. Bloomberg. I am happy to be able to do that.
[Laughter.]
Now I am going back to New York, where I will be one of the
few. [Laughter.]
All the best. Thank you.
Chairman Lieberman. Take care. Thank you.
Mr. Bloomberg. Good luck. All the best.
Chairman Lieberman. Safe travels.
We will now proceed. Jane Holl Lute has filed responses to
a biographical and financial questionnaire, answered pre-
hearing questions submitted by the Committee, and had her
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 offices.
Our Committee rules require that all witnesses at
nomination hearings give their testimony under oath, so Ms.
Lute, I would ask you to please stand and raise your right
hand.
Do you swear that the testimony you are about to give to
the Committee will be the truth, the whole truth, and nothing
but the truth, so help you, God?
Ms. Lute. I do.
Chairman Lieberman. Thank you very much. Please be seated,
and we would now welcome your opening statement. If there are
people here you would like to recognize, this would be a good
time to do it.
TESTIMONY OF JANE HOLL LUTE\1\ TO BE DEPUTY SECRETARY, U.S.
DEPARTMENT OF HOMELAND SECURITY
Ms. Lute. Well, thank you very much, Mr. Chairman. Mr.
Chairman, Ranking Member Collins, Members of the Committee, I
am deeply honored by the President's nomination and the
opportunity to appear before you today.
---------------------------------------------------------------------------
\1\ The prepared statement of Ms. Lute appears in the Appendix on
page 39.
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I want to thank the Mayor for those very kind words. I have
been told repeatedly a nominee is advised not to make news in a
confirmation hearing. I fear we may have already made some. It
is not often you hear a New Yorker say such nice things about a
Jersey girl. [Laughter.]
So on behalf of Jersey girls everywhere, I want to thank
the Mayor for his very nice remarks.
But in all seriousness, despite my roots across the river,
I have been a proud New Yorker for some time and have had a
front row seat watching Mayor Bloomberg lead New York City in
the shadow of September 11, 2001. I want to thank him for his
leadership and for making the trip down here today.
Mr. Chairman, Ranking Member Collins, Members of the
Committee, I am also honored to be joined today by my husband,
General Douglas Lute, whom some of you know, and the other
members of my family, our eldest daughter, Amy Kyleen Lute; my
brother, John; his son, John; my sister, Adele; our dear
friend, Grace Carman; my sister-in-law, Noelle; her daughter,
Brittany; my brother-in-law, Miles; my husband's sister, Pat
Lute; and her husband, Charles Smith. Our other daughters----
Chairman Lieberman. Is there anyone here not related to the
nominee? [Laughter.]
Ms. Lute. My parents, God rest their soul in heaven, I
think are here, as well. Our daughters, Adellyn and Camryn, are
not here. Adellyn is away at school, and Camryn would steal the
show.
A special word about my husband, Doug. He told me a moment
ago he felt like a prop. Maybe he is, but he is my prop. He is
the loving husband this morning, and I could not imagine my
life without him and without his support. I am deeply blessed.
My husband and I, as the Mayor said, Mr. Chairman and
Ranking Member Collins and Members of the Committee, are public
servants. My husband and I were called to service some time
ago--a long time ago, it turns out--as soldiers in the U.S.
Army, and that service brought me to Berlin, Germany, at the
height of the Cold War, to the Middle East for Operation Desert
Storm, to the National Security Council staff under both
President George H.W. Bush and President Clinton, to U.N.
Peacekeeping, where I ran support operations for the second-
largest deployed military presence in the world.
That call to service has also brought me here today before
you. I am deeply honored by President Obama's nomination and by
Secretary Napolitano's confidence, and if confirmed, I will
continue this tradition of service.
Sitting here, I am struck by the breadth and weight of the
challenges that confront the Department of Homeland Security,
but I am also deeply impressed by the men and women who have
made the work of securing the American homeland their calling.
I am struck, too, by the collective knowledge, experience, and
wisdom in this room. Few understand the challenges facing the
Department of Homeland Security better than you, the Members of
this Committee, and few understand the challenges of protecting
and preparing the American people better than the first
responders, fire fighters, law enforcement, those in emergency
response and management and at State, local, and Tribal
governments that span this great Nation.
In the process of preparing for this hearing, I have
reached out to many of these groups and sought their guidance,
wisdom, and input. Many have joined us today, and I am honored
by their presence.
Let me thank Harold Schaitberger, President of the
International Association of Fire Fighters; Sheriff Kennard of
the National Sheriffs Association; Mary Fetchet, Founding
Director of the Voices of September 11; and representatives
from the International Association of Fire Chiefs, the
International Association of Chiefs of Police, the
International Emergency Managers Association, who are here
today and who have already provided invaluable counsel. I will
work to strengthen the Department's relationship with these
communities and with the State, local, and Tribal officials, as
well.
I have spent my entire adult life working on the issues at
the heart of the Department of Homeland Security, the heart of
its mission--protection, prevention, preparedness, response,
recovery, and resilience. As part of that experience, I have
spent a great deal of time around many different borders and
their many issues, in peace ending conflict, where a balance
must be struck between maintaining safety and security while
permitting, while indeed encouraging, legitimate trade and
travel.
I know what it is like to be responsible for preparing for
and responding to emergencies when the need to gain accurate
information, mobilize critical resources, and manage the
coordination of those resources under the pressure of crisis is
real. I know what it is like to be the officer in charge of
support to hundreds of thousands of people in far-flung
operations from diverse national, institutional backgrounds,
each with legacies, traditions, cultures, and languages. I know
the imperative of creating an integrated, coherent culture
while respecting the individuality and uniqueness of its parts.
While a new Administration brings change, some things will
not change. The Department of Homeland Security must remain
fully committed to its mission of keeping America and Americans
safe, and we must do that while protecting the highest values
and principles that define this great country. The Department
must be responsible and responsive, proactive and engaged,
robust and efficient. It must keep us prepared for the majestic
force and might of Mother Nature, and it must protect us from
the cruelty of those who target civilians.
If confirmed, I will continue that path to keep our country
safe, to keep the population secured and prepared and
protected, and to keep our borders secure.
America is at its best when Americans stand proud and
confident, with a confidence that reflects clearly the deep
values and traditions that built this great Nation.
In conclusion, Mr. Chairman, let me underscore how deeply
honored I am by the President's nomination and how deeply
honored I am to appear before this Committee today. And with
that, Mr. Chairman, I would be delighted to answer any
questions the Committee may have.
Chairman Lieberman. Thank you very much for an excellent
opening statement.
I will begin with the standard questions we ask of all
nominees. First, is there anything you are aware of in your
background that might present a conflict of interest with the
duties of the office to which you have been nominated?
Ms. Lute. No.
Chairman Lieberman. 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?
Ms. Lute. No.
Chairman Lieberman. And 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?
Ms. Lute. I do.
Chairman Lieberman. Thank you very much.
Before we start the first round of questioning, I do want
to note, in addition to the distinguished people that you have
introduced, that the Committee has received several letters in
support of your nomination, and unless there is any objection,
I am going to place them in the record.\1\
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\1\ The letters of support referenced by Chairman Lieberman appear
in the Appendix on page 430.
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Chairman Lieberman. We are going to now start with the
first round of questions, limited to 7 minutes per member.
I want to build really from your resume and from some of
the things you have said in your opening statement, Ms. Lute,
which is to ask you a two-part question. The first is, in a
general sense, not too discursive, in all the administrative
experience you have had, what are some of the lessons you draw
that you think will best help you fulfill your responsibilities
in this job?
And second, from what you know of the Department, what do
you think it needs most in this next chapter? It is a work in
progress. It has made great progress, but there is still more
to be done. So give us an answer to those two questions.
Ms. Lute. Thank you, Mr. Chairman. I would say,
overwhelmingly, the most important lesson I have learned has to
do with people. People are the most important resource any
enterprise or organization has. They need to feel valued, and
they need to be able to be given the opportunity to contribute
value. It is the responsibility of leadership and management to
bring out the best that people have to offer.
I have learned the importance of active listening, of
reaching out to all the stakeholders who have firsthand
knowledge of what are very complex issues and doing it in a way
that does not have to interfere with getting a job done. You
can be inclusive in your consultation process, but you can also
be decisive.
These are, I suppose, two of the biggest lessons that I
have learned. Treat people with respect. Value the people who
are doing this job who have made the work their calling. And
listen actively and engage all the stakeholders, but in a
systematic way to move issues forward.
As I have come to learn over the course of preparation for
this hearing, as I mentioned, Mr. Chairman, I am very impressed
by the commitment of the men and women in the Department of
Homeland Security. It is a young Department, many people have
said. It just celebrated its sixth birthday. But in my view, as
you mentioned, the time has come. People have a right to expect
that this Department has its feet under it, that it is very
clear about the centrality of its missions, the resources it
needs to get those missions done, and again working with all
stakeholders at State and local levels, with the Members of
this Committee, to move that mission forward.
Chairman Lieberman. Let me ask the follow-on to that, if in
your discussions with Secretary Napolitano she has identified
any particular areas that she wants you to focus on.
Ms. Lute. The Secretary and I have discussed this, Mr.
Chairman. It is her vision, and it is certainly one that I
would fully support if I am confirmed, that I would form part
of the leadership team of this Department, working very closely
with her, being fully cited on all of the operational issues,
all of the priorities that are established, overseeing day-to-
day, but also ensuring that the strategic development of the
Department, the increasing coherence and integration of its
various parts continues.
Chairman Lieberman. Yesterday, the Committee held a hearing
on the Mexican drug cartel violence, both what is happening
there inside Mexico and what we can do to help President
Calderon, and then the effects of the violence here. I will
tell you that there was some evidence that the staff picked up
that--and, of course, earlier this week, Secretary Napolitano
announced the redeployment of some DHS and Justice Department
resources to the border, and personnel--there is not enough
coordination at this point between the Department of Homeland
Security, the Department of Justice, and the Department of
State in implementing all of these programs.
I do not know whether you are in a position to have heard
about that, if you have any thoughts about it. It just seemed
to me that it may be something that you as Deputy could play a
hand in, perhaps even putting together a more formal
interagency working group, because this is a serious problem.
Yesterday, the Department of Justice representative, the
Deputy, told us that today, in addition to the overflow of some
violence and kidnapping from Mexico into the U.S. border areas,
the Mexican drug cartels are the No. 1 organized crime threat
in America.
So have you heard about those problems? If so, do you have
any ideas about how to overcome them?
Ms. Lute. Mr. Chairman, I have certainly heard about these
problems. I am aware of the steps that the Administration and
the Department are taking to strengthen the posture, the safety
and security at the border. I am very aware of the importance
that the Administration places on the support of the efforts of
the Mexican government to break the back of these cartels and
to deal with this problem that, as Secretary Napolitano has
said, every American needs to be aware of and engaged with.
This is an area, too, where I think my experience in the
interagency process that I have had before and my experience
with the intelligence community will complement Secretary
Napolitano's experience. As a former governor of a border
State, she knows these issues very well, and I would certainly,
if confirmed, look forward to working very closely with her on
this important priority.
Chairman Lieberman. One more question in the time I have
remaining, another substantive question, and that is about
cyber security. This Committee has been concerned about our
cyber security. We know that we are under regular attack, both
for reasons of security and also to the commercial and
industrial infrastructure of our country. There is a lot going
on in the government. I know there are reviews going on in the
new Administration. Here, too, there seems not to be a clear
focus point of coordination, and I wanted to ask you to speak,
to the extent you want, on how you assess the cyber security
problem, and second, if you have any ideas going in about what
the role of the Department of Homeland Security should be in
our government in making sure that we are defending against
cyber security attacks.
Ms. Lute. This is an issue area, Mr. Chairman, where the
White House does have a study going on right now to look
comprehensively across the Federal Government about what
actions are being taken to safeguard the cyber networks of this
country.
Again, in my own experience, I know how important high-
fidelity, reliable, safe and secure data and communications
systems are. They do form part of the critical infrastructure
of this country. The Department of Homeland Security is a key
player in the cyber security framework to protect this country
as part of its critical infrastructure, and I know the study
that the White House is conducting is looking comprehensively
to make recommendations about strengthening not only the
Department's role, but the overall approach to keeping our
Nation secure.
Chairman Lieberman. Well, I appreciate your answer to that
and your other answers. We are going to really rely on you and
the Secretary to advise this Committee and particularly to let
us know whether you are receiving the resources and the
authority to do what you need to do to protect the cyber
infrastructure of the United States, which we have reason to
believe, unfortunately, by the nature of unconventional warfare
these days, might be one of the areas of our homeland that
would be most likely to be attacked from afar.
So I thank you for your answer, your focus, and now I would
yield to Senator Collins.
Senator Collins. Thank you, Mr. Chairman.
Ms. Lute, you may be aware that our Committee did an in-
depth investigation into the failed response to Hurricane
Katrina. It took most of a year. We did several hearings,
issued a report with recommendations for all levels of
government. And we also wrote the Post-Katrina Emergency
Management Reform Act, which was signed into law. It
significantly strengthened the Federal Emergency Management
Agency (FEMA), and since that time, I know the Chairman takes
great pride in the fact, as do I, that FEMA's response to
natural disasters has improved enormously.
Nevertheless, there are some critics who are still calling
for FEMA to be taken out of the Department of Homeland Security
to become an independent entity. Now, I would note that all of
the first responder groups sitting behind you who are indeed on
the front lines agree with the conclusion that this Committee
reached, which is that FEMA needed to be strengthened but kept
within DHS.
What are your thoughts on the location of FEMA?
Ms. Lute. Thank you, Ranking Member Collins. I am aware of
the issues that have been raised about this and certainly aware
of the conclusions of this Committee, the position of the
groups that are represented here. I am aware of the issues that
exist on both sides of this question. There are some who say
that FEMA is indeed strengthened by its location in the
Department, with the ability to mobilize resources from other
parts of the Department quickly, put them at the disposal of
the emergency response anchored by FEMA, for example, as
illustrated in Hurricanes Gustav and Ike, and there are others
who think that FEMA needs degrees of freedom, perhaps, that an
independent status would offer it.
Secretary Napolitano has said that what we really need to
focus on is a strong FEMA, able to discharge its core
responsibilities of protecting and preparing this country for
all hazards, and that is her focus and certainly one that I
would, if I am confirmed, look to reinforce, as well.
Senator Collins. Thank you. We look forward to continuing
to talk with you about that very important issue.
I would now like to turn to the matter that I alluded to in
my opening statement. You and I have discussed at length the
procurement failures at the U.N., but I think it is very
important for the public record for me to ask you a series of
questions.
The U.N. has the equivalent of an Inspector General. It is
called the Office of Internal Oversight Services (OIOS). In a
report dated January 2 of this year, this office was highly
critical of U.N. procurement activities, and in particular it
criticized the lack of acquisition planning and contract
management involving a sole source contract that your office
requested be directed to a subsidiary of Lockheed Martin.
First of all, let me ask what your response is to the
criticisms leveled against your office or your management of
this contract by the Inspector General.
Ms. Lute. Thank you, Senator Collins. It will not surprise
you to learn that I think that some of the criticisms were not
justified. The context of this particular contract is important
to establish. It was a unique recommendation by me and my staff
through the appropriate authorities in the United Nations,
fully consistent with the rules and regulations, in order to
address the exigencies of the violence that was unfolding in
Darfur. I do not agree with the assessment in this report that
there was inadequate planning.
The political circumstances surrounding this deployment
were extremely volatile over a period of many months. As many
of you know, concurrent to the indecision regarding the
international community's response to Darfur, there were a
number of governments, including the U.S. Government, including
many members of this body, who were urging the rapid deployment
of Peacekeepers to Darfur. This recommendation was made fully
consistent with the rules, fully in the context of evaluation
of the circumstances on the ground for a very small part to
facilitate that deployment.
Senator Collins. During your time at the U.N., did you make
any other requests for non-competitive contracts to be awarded
in excess of $1 million?
Ms. Lute. I did not, Senator.
Senator Collins. What exactly was your responsibility for
procurement at the U.N.?
Ms. Lute. My responsibilities were to lead the support
operations to Peacekeeping and peace operations worldwide--
personnel, finance, logistics, supply chain management,
aviation, communications electronics, information technology,
and transportation. The Procurement Division rested in the
Department of Management. One of the citings also, I believe,
in the OIOS report was the difficulty in cross-departmental
coordination. It is a problem that exists. I did not have
procurement negotiating authority or contract award authority
at all.
Senator Collins. Did contracting officers report to you?
Ms. Lute. Contracting officers at headquarters reported to
the Department of Management, and in the field, they reported
through their respective mission chains to the head of their
mission. There was an earlier time when the support in the
field had a dual report to my office and to the heads of
mission, but since the Department of Field Support was
established, that dual report was eliminated, and the field
contracting officers report through their chain into the
mission leadership.
Senator Collins. Thank you, Mr. Chairman.
Chairman Lieberman. Thank you very much, Senator Collins.
We will call, as is our custom, Senators in order of their
arrival, which is Senators Akaka, Coburn, Voinovich, and
Burris. Senator Akaka.
OPENING STATEMENT OF SENATOR AKAKA
Senator Akaka. Thank you very much, Mr. Chairman.
I want to thank you for taking the time to meet with me,
Ms. Lute. I congratulate you on your nomination and welcome you
here today, and not only you, but your extended family that are
here.
Ms. Lute. Thank you.
Senator Akaka. It is great to know that you have these
supportive relationships.
I want to tell you that your job as the Deputy of DHS, and
you know this, is among the most demanding positions in
government. DHS represents, besides that, the most serious
management challenge in the Federal Government today. Senior
leaders of the Department must be ready and eager to take on
the challenges that will face them. Your background, without
question, is an impressive one that qualifies you well for the
challenge that is ahead.
I want to mention, too, that I really appreciated your
remarks on the importance of investing in people. I want to
further urge you to focus on the Department's management and
integration as they are central to improving operational
functions. You must ensure that DHS invests in the workforce,
empowers the Under Secretary for Management, encourages
strategic planning, and upholds our civil rights and civil
liberties in all circumstances.
Before I move to my questions, Mr. Chairman, I want to ask
that my full statement be made part of the record.
Chairman Lieberman. Without objection.
[The prepared statement of Senator Akaka follows:]
PREPARED STATEMENT OF SENATOR AKAKA
Mr. Chairman, I am pleased to join you in welcoming Jane Holl Lute,
the President's nominee to be Deputy Secretary of the Department of
Homeland Security. Ms. Lute, I welcome you and your family today.
The job for which you have been nominated is among the most
demanding positions in government. DHS represents the most serious
management challenge in the Federal Government today. Senior leaders of
this Department must be ready and eager to take on the challenges that
will face them.
Your background is an impressive one that qualifies you well for
this challenge. As an officer in the U.S. Army, you served your country
overseas and learned the lessons of good leadership and management.
Your time on the National Security Council staff undoubtedly left you
with a broad understanding of coordinating policy across large, complex
organizations and building consensus in an interagency setting.
Finally, your service as an Assistant Secretary-General at the U.N. has
allowed you to demonstrate your leadership skills on a global basis,
working with a diverse United Nations staff and many nations'
peacekeeping forces, especially in areas facing imminent crisis.
As you may know, implementing and transforming the Department of
Homeland Security has been on the Government Accountability Office's
(GAO) ``high-risk list'' since 2003. I am pleased that since being
confirmed, Secretary Napolitano has put management among her top
priorities. Just last month, she began a departmentwide efficiency
review initiative, which may help lead to programmatic improvements and
greater accountability. If you are confirmed, I urge you to focus on
the Department's management and integration, as they are central to
improving its operational functions. I would like to share with you a
few of my top DHS concerns.
DHS must invest in its workforce. For instance, the Department
needs to recruit more acquisition professionals to better develop and
oversee contracts. DHS also must strive to make itself an employer of
choice. The most recent Partnership for Public Service Best Places to
Work survey ranked DHS second to last among large Federal agencies as
being an employer of choice based on employee satisfaction and
engagement. Strengthening employee collective bargaining rights and
building a labor-management partnership would help DHS address employee
concerns that undermine morale. Toward that end, I support President
Obama in granting collective bargaining rights to Transportation
Security Officers. By having a workforce with the right skills, high
morale, and strong employee protections, DHS can improve our security
while it strengthens its internal operations.
In addition, I hope you will partner with the Under Secretary for
Management to improve contract oversight and ensure strategic planning
occurs before major acquisitions are undertaken. The U.S. Customs and
Border Protection's Secure Border Initiative (``SBInet'') virtual fence
has suffered both from inadequate planning before the initial
contracting decisions were made as well as the failure to correct
problems as they arose. Also, the Domestic Nuclear Detection Office
(DNDO) needs to focus more on strategic planning to counter the threat
of nuclear smuggling to better protect our security. For instance, DNDO
set aside its plan to deploy a variety of Advanced Spectroscopic Portal
(ASP) radiation monitors to detect dangerous nuclear materials on rail
cars, at seaports, at airports, and on mobile platforms to focus on one
type of ASP system. This system has not yet received final
certification and, according to GAO, it may have lifecycle costs well
over $1 billion more than anticipated by DNDO.
Finally, we must ensure that our Constitutional freedoms are not
considered as an afterthought. DHS's unique security role requires that
it embraces civil rights and civil liberties in all its actions. I
believe that the Department's policy at the border, which allows the
search of laptops and other electronic equipment, needs to be reviewed
with privacy concerns in mind. There is also the REAL ID Act. Along
with imposing serious costs and burdens on States, this Act raises
significant privacy concerns. The current law does not protect
adequately personal information that would be contained on REAL ID
cards and in linked State databases. Also, I believe that the National
Applications Office should more fully resolve civil liberties concerns
and compliance with privacy standards before DHS moves forward with
making intelligence community assets available for domestic purposes
such as law enforcement and homeland security.
Ms. Lute, your long career in public service, including your
willingness to take on the most challenging assignments in the U.N.,
serves as an excellent example of putting service before self. I want
to congratulate you on your nomination, and I look forward to working
closely with you to improve our Nation's homeland security.
Thank you Mr. Chairman.
Senator Akaka. Ms. Lute, according to the most recent
Partnership for Public Service Best Places to Work survey, DHS
ranks second to last among Federal agencies based on employee
satisfaction and engagement. DHS must treat its workforce as
its most valued asset. Therefore, it should work to address
recruitment and retention challenges and ensure that its
employees have collective bargaining rights, which will lead to
better labor-management relationships. Will you please discuss
your priorities for investing in the Department's workforce and
making DHS a better place to work?
Ms. Lute. Thank you, Senator. I am aware of this survey and
I recognize that it represents a challenge for the Department.
I am also aware that the Department has been viewed and rated
as the most improved over time, as well. But we still have a
long way to go.
I mentioned before that people, to me, are the most
important resource an organization has. I am not a person for
whom people have to earn respect. Human beings deserve respect.
You do not have to earn my respect. You deserve that. People
have a calling when they come to Homeland Security. We cannot
let it just become a job. We need to build on that calling,
build on that commitment and work. Do they have the tools they
need to do the job? Do they have the training? Are their front-
line supervisors well trained and invested? Do they feel like
they are adding value? Do they feel valued in return?
I think, comprehensively, this is an area that, if I am
confirmed, I would want to work at, and I would look to work
with and engage the workforce, the representatives of the
workers that exist in the Department of Homeland Security, to
chart a strong way forward.
Senator Akaka. Ms. Lute, DHS policy allows laptops and
other electronic devices to be searched at the border without
suspicion. Courts have ruled that the Constitution permits
this. Nevertheless, these searches may have significant privacy
implications, as many people keep sensitive information, such
as medical and financial records and work documents, on their
laptops. Some companies have started taking expensive
precautions to protect data when their employees travel abroad.
Do you plan to review this policy? At a minimum, I hope you
will ensure that any policy on border searches of electronic
equipment includes strong privacy protections.
Ms. Lute. Senator, I am aware of the issues that have been
raised and aware of the concerns. The searches have been
relatively few in number, and the Department has taken steps to
improve its accounting, keeping records of when this does occur
and ensuring that all the rules and regulations of this country
are observed.
The recent appointment of a noted privacy expert to that
position is a testimony to the commitment that the Secretary
has, and if I am confirmed, certainly I would support in
ensuring that all the privacy and civil liberties and civil
rights of people are maintained, even as we discharge our
duties to secure the borders.
Senator Akaka. Thank you for that, Ms. Lute.
Executive Order 13434, issued in May 2007, established the
National Security Professionals Development Program. Among
other things, this program was created to help develop National
Security Professionals by providing them training, education,
and experiences to improve interagency coordination and
collaboration. How do you foresee this program impacting DHS's
workforce and Department-wide integration?
Ms. Lute. I am aware of this program, Senator. I am also
aware that it is designed to create a robust pool and cadre of
professionals who can work across agencies in the national
security field. I am aware that some already at the Department
of Homeland Security have, in fact, been certified as National
Security Professionals, and if I am confirmed, I would look at
this program to understand how it can benefit the Department
and how our engagement can strengthen it across the board.
Senator Akaka. Well, thank you so much for your responses.
I really appreciate it.
Thank you, Mr. Chairman.
Chairman Lieberman. Thank you very much, Senator Akaka.
Before I call on Senator Coburn, I do want to respectfully
amend something that Mayor Bloomberg said. If I am not
mistaken, while your daughter pursues her extraordinary career
in New York, her residence is in Connecticut.
Senator Coburn. Unfortunately, she has two residences now--
--
Chairman Lieberman. All right.
Senator Coburn [continuing]. One in New York and one in
Connecticut. [Laughter.]
She pays New York City income taxes, let me put it that
way.
Chairman Lieberman. Thank you.
Senator Coburn. And Connecticut taxes.
Chairman Lieberman. We are grateful. [Laughter.]
Senator Coburn.
OPENING STATEMENT OF SENATOR COBURN
Senator Coburn. Thank you. Ms. Lute, thank you for being
here. I enjoyed our visit. I want to thank you and your
husband, your family for the dedicated service you have given,
not only to our country but to our world.
As I told you in my office, I believe you have a lot to
account for in your actions at the U.N., and I am going to go
through a series of questions and will use a second round, if
necessary, because I think the facts are not fully exposed as
to some major failures under your leadership at the U.N. I also
would ask that the OIOS report be entered into the record.\1\
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\1\ The OIOS reports submitted for the Record by Senator Coburn
appear in the Appendix on page 449.
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Chairman Lieberman. Without objection, so ordered.
Senator Coburn. I also would note that every report we have
that measures operations under your leadership has documented
serious mismanagement issues. There is not one report that we
can have that has any performance reports that document steps
that you took to respond to the problems, whether there were
improvements as a result of those responses. Without this
documentation, I think our Committee is going to have a
difficult time measuring your performance to determine if you
truly are qualified to manage a Department the size of DHS and
the security of the United States.
A major campaign promise from President Obama is to
identify and eliminate wasteful and duplicative government
programs, and I applaud him for that. I am still waiting for
him to do that, but I applaud him. I know that is in his heart
and it is something he wants to do.
Yet when I asked you to report which Peacekeeping missions
you managed that were wasteful or duplicative or should be
deauthorized, you chose not to answer my question. If you were
unwilling to identify waste at the U.N., how do we know you
will be willing to identify and eliminate waste and duplication
at the Department of Homeland Security?
Ms. Lute. Dr. Coburn, thank you, and also for our chat,
which I appreciate. I am a real believer in the responsibility
of management not only to achieve its mandates, but to be able
to ensure that operations are run effectively and to account
for the resources that have been entrusted to it. As I worked
in the Department of Peacekeeping in charge of support to
Peacekeeping operations around the world, this was an area
across the board, in the area of personnel, where we were doing
our best to reduce times necessary to recruit personnel, where
we were putting in place training programs to ensure that the
personnel that we did recruit had the training they needed so
we did not have to recruit again, a wasteful exercise, in my
judgment.
I am very aware that resources in personnel and in missions
and operations do constitute investments, and this is an area
that I worked on very closely. And if I am confirmed, I would
expect to bring the management experience that I have to the
Department of Homeland Security in a responsible way.
Senator Coburn. Will you make a statement to this Committee
that you will comply faithfully on a timely basis to the
Federal Accountability and Transparency Act?
Ms. Lute. Yes, Senator.
Senator Coburn. In the areas under your control, is there
any report that you can share with the Committee that documents
where you recommended or took action to eliminate waste?
Ms. Lute. In many of the OIOS reports, Senator, that you
cited, there are management responses of which I was a part and
author, where we agreed with a great deal of the
recommendations of OIOS, and where we disagreed, those were
noted in the public reports of OIOS.
Senator Coburn. Well, no. I am asking specifically, where
is the report that showed in response to problems that were
raised that problems were solved?
Ms. Lute. In those reports, also, Senator, it reflects in
part the management response to the findings that were raised
by OIOS, which indicate that management has taken on board, has
eliminated waste. For example, there are reports where OIOS
pointed out excess spare parts inventory and noted that
management had taken steps following those findings under my
authority to reduce those excess inventories and put in place a
system to ensure that they are not repeated.
Senator Coburn. Would you be happy to supply those reports
to the Committee?
Ms. Lute. Senator, I have supported the request for the
documents that have been requested, the public reports that are
available through the U.N. website, and others.
Senator Coburn. It raises a problem that we all should be
concerned about. There is absolutely no transparency at the
U.N. for us to even get information with which to evaluate a
nominee who is going to hold a high position in our government.
The information we have is all leaked reports that the average
citizen of this world cannot have access to unless it is
leaked, which tells us that we have great problems.
Let me move on. In several of your responses to my pre-
hearing questions, you diverted responsibility for many of the
management failures documented in U.N. audits and reports. For
example, U.N. auditors found that you failed to apply
consistent accountability standards for the Peacekeeping
personnel you recruited, trained, and deployed into the field.
Your response was you blamed rapid growth of the department and
inexperienced mission personnel.
Leaked U.N. memos reveal that, despite having 18 months to
plan, the contract that Senator Collins discussed with you was
pushed through, increasing the risk for fraud and abuse. You
blamed, and your words were, ``unfolding genocide in Darfur,''
even though that tragedy was in the mix and ongoing for several
years and even though the U.N. Security Council had reported
about it 2 years prior. You blamed the remote and dangerous
conditions of Darfur.
U.N. auditors found that 43 percent of Peacekeeping
procurement that was audited was tainted by bid rigging,
kickback schemes, and other fraud. You again blamed difficult
and challenging environments of Peacekeeping operations. You
also blamed the Security Council for issuing difficult mandates
that made it hard to follow the rules. I do not have any doubt
about that. I am sure that was a high hurdle. I know the
difficulty.
There are not many similarities between Peacekeeping and
homeland security, but they both deal with environments and
operating conditions. If you are confirmed and are managing
procurement and operations for programs such as FEMA, should we
expect you to excuse management failures or procurement fraud
due to difficult circumstances, such as natural disasters or
terrorist attacks?
Ms. Lute. Dr. Coburn, I believe that my record at the U.N.
shows that I am very associated with efforts not only to
implement mandates on the ground, but to ensure proper
oversight and accountability. I was often very closely
associated with OIOS, with its engagement to oversee
operations, inviting them in. I was a strong proponent of the
establishment of the Procurement Task Force. I was a strong
voice for making that task force permanent, recognizing that
the operating conditions, which you have described and which I
have described, represent challenges that have to be met to be
sure, but we also have to ensure that the proper controls are
in place, as well, and I am associated with that effort. It is
clear while improvement still has to be made, that we have come
a long way, as OIOS has recognized.
Senator Coburn. I have gone over on my time. Thank you, Mr.
Chairman.
Chairman Lieberman. Thank you, Senator Coburn. Next is
Senator Voinovich.
OPENING STATEMENT OF SENATOR VOINOVICH
Senator Voinovich. Thank you, Mr. Chairman.
I want to echo the thanks of this Committee and others for
your service to our country and for the service of your husband
to our country, and I am very pleased that you have been
willing to continue your service in the Department of Homeland
Security.
Senator Akaka and I have been working quite aggressively to
deal with transformation of the Department. It is the most
challenging reorganization to get 22 agencies and more than
200,000 people to move forward as a Department. I consider you
to be part of the third chapter. The transformation of the
Department is on the High-Risk List, and one of the things that
we have been trying to do is to get an agreement on the metrics
that we would use to determine whether transformation actually
is taking place. There was a great deal of work done by the
Office of Management and Budget (OMB), DHS, and the Government
Accountability Office (GAO) to reach consensus on what those
are.
First, are you familiar with the transformation strategic
plan that was put in place to move forward with the
transformation in the Department, and second, if you are, when
are we going to get back from the three agencies some agreement
on metrics so we can better determine whether or not the
transformation is indeed taking place?
Ms. Lute. Thank you, Senator. I am aware. I also do know,
as I mentioned earlier, that while many people continue to say
that the Department of Homeland Security is a young department,
it is also time for the Department to get on with its business,
to get on with consolidating, integrating its various
functions, and if I am confirmed, I would look forward very
much to delving deeper into this across the board and to
working with you and the other Members of this Committee to
ensure that we make forward progress.
Senator Voinovich. Well, I remain interested in receiving
the piece of paper that shows the agreed upon metrics so we
have something to objectively measure the performance of the
Department because many of the things that have gone wrong have
gone wrong because we have not moved forward with that
transformation. That is why it is on the High-Risk List. It
seems to me that one of the goals of the Department should be
to get itself off the High-Risk List because if it does that,
it means DHS has successfully completed its transformation. I
am going to be focusing in on that with Senator Akaka because I
think that is the only way that we are going to eliminate some
of the things that have gone wrong in the Department.
We now have a Chief Management Officer in the Department,
and Senator Akaka and I would like to see a 5-year term for
that individual, so we have somebody that can continue the
transformation. I would like you to look into that. I am
pleased that we were able to get the Chief Management Officer,
but I would like to have that individual have a term just like
I would like to have it over in the Defense Department.
Sometimes I wish you were going to the Defense Department
instead of this Department---- [Laughter.]
Because they need a whole lot of help, too. So I would like
you to look at that issue of having a term.
Ms. Lute. Yes.
Senator Voinovich. As Ranking Member on the Appropriations
Subcommittee on Homeland Security, one of the things that
struck me in my initial review of the budget was that we are
spending an enormous amount of money on securing the border.
Mr. Chairman, I think it is really important that we get a
better understanding of where the money is going.
There is no way that we will be ever able to afford to
really secure the border without immigration reform in this
country. Today, we have 33,000 beds around the country where
people are brought in, kept for 5 or 6 days, and we pay for
their medical care, process them, and send them back to their
country.
It is an enormous cost to us, and I look at that cost
relative to other costs in the Department and say to myself,
how far can we go with spending money on this particular issue?
And if we were able to get immigration reform, what impact
would that have on reducing those costs? Because that is our
problem.
So I would really like you to look at that issue and the
whole issue of where are we spending the money in the
Department. What are the priorities? There are only X-number of
dollars that you have. I would like to have the Secretary come
back and say to us, I have done an examination of all these
things and here is where I think the dollars could be spent
where we could get a better return on the investment we are
making, considering that we have limited resources.
One of the other two things that I talked to you about in
my office was the Visa Waiver Program that has been very
important to this country in terms of improving our national
security and our public diplomacy. I would like you to look
into the program and get back to me on where that is. There has
been legislation introduced and referred to the Judiciary
Committee that would gut the program, and I would like you to
look at that.
The other one was the PASS Program. We are trying to get
legislation passed that would allow the PASS Card to meet the
documentation requirement for people to travel to Canada and to
the other Caribbean countries instead of a passport.
In closing we are all concerned about the management of the
Department. I like your words, empower people, listen, quality
management, and so on and so forth. You have the right
nomenclature. We are hopefully going to see how it all works
out.
Ms. Lute. Thank you, Senator.
Chairman Lieberman. Thank you very much, Senator Voinovich.
Senator Burris.
OPENING STATEMENT OF SENATOR BURRIS
Senator Burris. Thank you, Mr. Chairman, and
congratulations to you for your nomination, Ms. Lute.
I am concerned about an experience that I had when I came
in as a cabinet officer of a governor back in 1972, where we
had merged several agencies. I just heard Senator Voinovich
raise that question about transformation. One of the biggest
problems I had, Ms. Lute, was trying to deal with all of those
agencies that did not want to give up their turf, and it got to
be quite a situation. As the Deputy Secretary of Homeland
Security, I would imagine that the Secretary is going to put a
lot of that transformation in your lap. If I am wrong, let me
know. But I think that there are still some areas of
consolidation and reorganization and transformation that has to
take place in Homeland Security in order to make that agency
up, running, and functional.
Have you done any assessment of this, and would you know
whether or not this is going to be a major responsibility of
yours?
Ms. Lute. Thank you, Senator. I am certainly aware of the
challenges that have existed, the challenges that were present
when the Department was created from 22 agencies and various
parts of the government coming together, and the efforts that
have been made over these past 6 years to further the
integration, to reduce duplication, and to strengthen add
comparative advantages.
My experience with integration and standing up a new
department, as I was charged with in creating the Department of
Field Support at the United Nations, is to do it in a way that
reflects not only a respect for the legacies and traditions and
the practices and the roles of the individual elements, but
really does insist on the greater sum of the parts, that people
make forward progress toward the integration that is called for
by law, that has been called for by policy, as well.
And if I am confirmed, I would expect to be given a leading
role in ensuring that the integration of the Department, the
further coherence of the Department, the proper engagement of
the Department with the other Federal agencies across the
interagency proceeds in a constructive way, and I would also
hope to be able to work with this Committee very closely in
ensuring that we stay on track.
Senator Burris. So do you know whether or not you will be
having any of these direct responsibilities for trying to
complete the transformation process? Have you talked with the
Secretary?
Ms. Lute. The Secretary and I have spoken, Senator, about
that. She, if I am confirmed, would consider me a full part of
the leadership team of the Department, charged with maintaining
not only the operational picture awareness, but movement on the
priorities that the Secretary has herself. So yes, I would
expect to be charged with responsibilities in this area, if I
am confirmed.
Senator Burris. I have not read all your background, but
did you have disaster experience at your other positions?
Ms. Lute. In my previous position, Senator, in fact, I was
charged with leading support operations for Peacekeeping
worldwide. In the course of that, I was also the Officer in
Charge of Peacekeeping during the war in Southern Lebanon that
happened in 2006, managing the emergency evacuation of
personnel in that situation and in other situations, as well.
We have had to respond to massacres and killings of U.N.
Peacekeepers, for example, and I am associated with that, and
also associated in mobilizing the Peacekeeping support element
of other crisis response operations. And in that context, as I
mentioned in my opening statement, I am very aware of the
imperatives of establishing a clear information picture,
mobilizing the proper resources, getting those resources where
they need to be on the ground, and then managing the
integration of those resources in the performance of a crisis
response.
Senator Burris. Ms. Lute, we had another issue in dealing
with our Southern borders. Of course, we have to be concerned a
little bit about our Northern borders, as well. I think the
Canadian border is even bigger than the Southern border. And
the question is, in terms of the drug trafficking that is
coming in, do you have any type of experience with communities
where all of these drugs end up, end users in our communities,
Chicago, Centralia, or Mattoon, Illinois, or anywhere in
America, because the small-town communities are really getting
inundated, as well, with these drugs that are coming in, which
will also be a part of Homeland Security's interdiction, I
would assume?
Ms. Lute. Senator, here is an area where I think my
experience would complement the experience of Secretary
Napolitano. I have had a lot of experience over the course of
my professional life, indeed, beginning in my professional
life, in and around borders--borders during the Cold War,
contested borders in the Middle East and in other areas. In
Africa, for example----
Senator Burris. When you say your experience, what do you
mean by your experience with borders? What do you mean?
Ms. Lute. As a young lieutenant, I was assigned to Berlin.
The border of the Cold War----
Senator Burris. When were you in Berlin? What years?
Ms. Lute. Nineteen-seventy-eight to 1982.
Senator Burris. Nineteen-seventy-eight to 1982. The war was
still there, right?
Ms. Lute. Yes, Senator, it was.
Senator Burris. Yes, because I studied in Germany, so I was
a little concerned in terms of that.
Ms. Lute. But I am aware of the effects of conflict, the
effects of the illegal trafficking in weapons, in cash, in
illicit contraband and other commodities, the effects that it
has on impoverished communities internationally, and if I am
confirmed, I would expect to bring my experience to complement
that of Secretary Napolitano, who has first-hand experience
dealing with these issues in the domestic context as the former
governor of a border State.
Senator Burris. Thank you very much, and good luck to you.
Ms. Lute. Thank you.
Senator Burris. God bless you.
Ms. Lute. Thank you.
Chairman Lieberman. Thanks, Senator Burris.
It is actually a tribute to you and an indication of the
importance in which Members of the Committee hold your
nomination that we have more than our normal attendance today,
so with that, Senator Landrieu, it is all yours.
OPENING STATEMENT OF SENATOR LANDRIEU
Senator Landrieu. Thank you, Mr. Chairman.
I would not have missed this hearing. I think this is one
of the most important nominations that our President has made,
and I have had the pleasure, Ms. Lute, to meet with you
privately at some length about some of the very pressing issues
that are so important not only to our country, but to the State
that I represent and to the region.
Let me begin, Mr. Chairman, by saying I continue to be
extremely impressed with the quality of the nominees that have
come through my office as well as the offices of many other
Senators, whether it is in the Department of Education, the
Department of Housing and Urban Developmen (HUD), or the
Department of Homeland Security. Just the level of your
academic achievements, of your broad and deep experience, and
all of that will come in handy to run an agency that needs a
tremendous amount of work and effort. Despite the good work of
the leadership of this Committee, there are serious problems,
in my view, with Homeland Security, and I think that your
experience will--you will need all of it to get the job done
from where I sit.
But let me ask you this specifically, and then I will go
more broadly. As we previously discussed, you may be aware of a
GAO report that has indicated that while we have allocated from
the Federal Treasury $120 billion for the recovery efforts in
the Gulf Coast over the last 4 years (it will be 4 years this
August), maybe 40 percent of that money was wasted. Some of it
is because of inability at the local level, but most of it,
according to this report, is because of the poorly constructed
and ill constructed avenues that FEMA had either not
established or had atrophied. Not only was the money wasted and
lots of it unaccounted for, in terms of poor training, etc.,
but the real sad part of it is that thousands of eligible
individuals and families went unserved.
So since I represent 4.5 million people that this travesty
happened to, my question is, as we attempt to fix pieces of
this, and we have fixed some but there are some that still have
to be fixed, there are currently several billion dollars that
are caught up in a now 4-year dispute between FEMA and the
folks on the ground in New Orleans and Baton Rouge and Houma
and many other places in our State. Despite repeated efforts in
the past, FEMA rejected any effort to fix it. So I recently
added a provision to the stimulus package to establish an
arbitration panel.
What is your understanding of how that will work? Are you
committed to making it work? If so, when will those regulations
be in place to basically move out the $4 to $5 billion that we
think are stuck in the pipeline, as we say, between the Federal
Government and local officials that are desperate for these
funds to hit the ground?
Ms. Lute. Thank you, Senator. Secretary Napolitano, as you
know, together with the Secretary of Housing and Urban
Development, recently made a trip to the Gulf Coast, and the
Secretary reiterated her commitment and the commitment of the
Department of Homeland Security to the recovery of the region
and of the State. The recent extension of the Office of Gulf
Coast Recovery, as well, is a further sign of the commitment of
the Administration to follow through on this.
I am aware of the strengthening of FEMA as a result of the
Post-Katrina Emergency Management Reform Act and the efforts
that FEMA has been taking and the Department has been taking to
further strengthen not only FEMA in the performance of its
duties, but its relationship with State and local officials.
And if I am confirmed, Senator, I would expect to look at this
area very closely in the context that you outlined, working
together with you and the Members of this Committee to ensure
that the statutes that are put in place and the performance of
the Department and of FEMA is what you expect.
Senator Landrieu. And the reason I pursue this line of
questioning, and I do have two more brief questions, is because
I have just completed with the good support of this Committee a
9-month investigation. We conducted over 90 to 120 interviews
with individuals, and thousands of documents were reviewed, and
what we found were many failings between FEMA and HUD for lack
of a comprehensive housing recovery plan should a large
population be displaced, and that is the subject for another
hearing.
But the point is this, that our report also showed that the
person who held your job before--I think it was Deputy
Secretary Michael Jackson, is that correct? The report shows
that decisions made at this level, from your position,
prevented some of the requests that FEMA was making to
interpret the Stafford Act in a more flexible way that would
have actually brought aid, saved money, and spared a lot of
pain and suffering.
So I bring it to you because if FEMA is going to stay in
Homeland Security, then we have to have faith that the people
running Homeland Security will give FEMA the attention it needs
to get the job done when we have a potential flood, like right
now in North Dakota and Minnesota, and when we have more
hurricanes in the Gulf or the Atlantic.
My second question is actually about the Coast Guard. They
were the one agency of the Federal Government that actually
responded and performed magnificently, and that story will be
written and it will be a proud moment for the Coast Guard. I
understand they had to do a lot of things outside of the chain
of command to get the job done, but that is for another story.
They got it done.
But the Coast Guard has now been tasked with coming up with
new rules and regulations to govern offshore vessels, and while
I am very supportive of that and Thad Allen is a great
Commandant of the Coast Guard, I want you to be mindful that
the offshore oil and gas industry, which exists only in the
Gulf of Mexico, with big vessels and big ships, is very
different than the cargo vessels that come in and out of all of
our ports, including Louisiana's. And I want to call to your
attention that this industry is being threatened by regulations
that refuse to treat them in a different way than these large
cargo vehicles.
Do I have your commitment to look into this issue, report
back to me within a few weeks about what you or the Secretary
can do to give some relief, appropriately without bending any
security rules, for the offshore oil and gas industry?
Ms. Lute. Senator, if I am confirmed, you certainly have my
commitment to look at these issues, to work with you as part of
the outreach of the Department not only to State and local
governments, the private sector is an important partner, as
well, and you certainly have my commitment.
Senator Landrieu. Thank you, Mr. Chairman.
Chairman Lieberman. Thank you very much, Senator Landrieu.
We will go to a second round now. I want to follow up, Ms.
Lute, on some of the questions that Senator Coburn asked about
your time at the United Nations. As I understand it, these
United Nations reports are typically confidential unless a
member state specifically requests a report or reports. Am I
right in what I have heard, which is that after meeting with
Senator Coburn and hearing his desire to see these reports, you
requested that the U.N. release the particular reports that
Senator Coburn had in mind, or you requested our government to
request the reports?
Ms. Lute. I wrote a request to the Under Secretary-General
for Management at the United Nations----
Chairman Lieberman. Right.
Ms. Lute [continuing]. Fully supporting the release of all
the material that was requested. Some of the reports are
available publicly when the member state requests them. I am
not a member state. Some of them are internal management
documents that remain under the control of the United Nations.
Chairman Lieberman. So the problem with the reports and
their openness is not obviously yours. This is the United
Nations policy.
Ms. Lute. Senator, yes.
Chairman Lieberman. Yes. And if we are troubled by it, we
may want to do something about that more generally, but I
wanted to get on the record that you have tried your best to
get those reports made public.
I suppose the relevant follow-on question is whether as
Deputy Secretary you would support open and transparent
oversight of the Department of Homeland Security by the
Inspector General (IG), GAO, Congress, and others?
Ms. Lute. Yes, Mr. Chairman, I would.
Chairman Lieberman. Senator Coburn referred to a specific
OIOS report and additional reports more generally. If I
understand this correctly, much like an IG report, these
reports noted concerns or problems, which that office
investigated. Those reports then typically offer specific
recommendations for corrective actions. So if I heard you
correctly, it was that in your responses to those when it was
relevant, you indicated what you thought of the findings and
what you were intending to do about it.
Ms. Lute. That is correct, Mr. Chairman. We prepare our
detailed management responses to these reports when they come
out. The Office of Internal Oversight Services takes portions
of the management response, incorporates it into its final
report, which is then issued.
Chairman Lieberman. So let me ask you a general question,
which is, because we do not have the documents, would you say
that it was typical more often than not that you agreed with
those recommendations and directed people under your
supervision to take corrective actions?
Ms. Lute. Yes, Mr. Chairman, overwhelmingly.
Chairman Lieberman. Again, I am going to ask you to go from
your memory, since you do not have the documents. Can you
provide some examples of steps that you took to improve the
acquisitions process at the Department of Peacekeeping
Operations?
Ms. Lute. In direct response to not only concerns raised by
OIOS, but our own operational concerns that the system was
being overwhelmed, I sought a senior level meeting, and we
established a senior-level engagement on specifically this
question. I instituted a requirements review panel. I
instituted a mission start-up, a monitoring process, what we
called the traffic lights process--red, yellow, green--to have
senior-level attention of the key support issues that were
unfolding at the time of the mission start-up, which is a
critical time. I worked with the Department of Management. My
staff worked with them to expand the core requirements list to
facilitate direct procurement on the ground where a lot of it
occurs. We also worked with OIOS to bring them in at mission
start-up so that they could be present.
As I mentioned, Mr. Chairman, I was a strong supporter of
the Procurement Task Force, of making that task force
permanent, and of instituting policies within the Department to
be responsive to the Procurement Task Force and OIOS.
Chairman Lieberman. In regard to the Procurement Task
Force, I do want to note that there is a very relevant and, I
would say, remarkable letter\1\ filed with the Committee by
Robert M. Appleton, former Chairman of the United Nations
Procurement Task Force--that was a task force set up by the
Secretary General of the U.N. in 2006, following the Iraqi Oil
for Food scandal. Mr. Appleton says of you, ``Ms. Lute
continuously supported the task force's investigations and our
efforts to minimize the risks posed to the organization as a
result of the significant amount of funds used for DPKO,'' the
Department of Peacekeeping Operations, ``procurement. While
program managers in the U.N. are not formally required to
follow or accept the conclusions and recommendations of
oversight bodies,'' which is quite interesting itself, ``Ms.
Lute nevertheless reacted swiftly and responsibly and took
immediate corrective action where we found corruption, fraud,
or violations of internal rules or procedures of the U.N.''
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\1\ The letter from Mr. Appleton referenced by Chairman Lieberman
appears in the Appendix on page 430.
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I mean, that is from an outside investigator, and then
there is another letter\2\ filed with the Committee by
Christopher Burnham, an American citizen who was then at the
U.N. as Under Secretary-General for Management. I happen to
know Mr. Burnham. I did not know he wrote the letter until just
now. But he does not offer these superlatives too often. ``Jane
Lute was not a good manager, she was a great manager.
Inheriting the single most difficult mission at the entire
U.N., Peacekeeping, she supported my efforts at good governance
and controls and advocated for even stiffer controls within
Peacekeeping, such as the creation of an Inspector General
within Peacekeeping.''
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\2\ The letter from Mr. Burnham referenced by Chairman Lieberman
appears in the Appendix on page 434.
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I understand the questions that are being raised, but I do
think that these are very significant statements filed on your
behalf, and I appreciate the answers that you have given to my
questions. Thank you. Senator Collins.
Senator Collins. Thank you, Mr. Chairman.
Let me continue with this line of questioning because I am
trying to sort out here exactly what your responsibilities were
and what your responses were to some of these reports. Like the
Chairman, I have heard from people whom I respect that you are
an extraordinarily good manager, and so I take those testaments
very seriously. On the other hand, I am very troubled by the
Procurement Task Force's findings.
During the 18-month period that the Task Force did its
investigations, it completed 63 investigations. It issued 22
reports. It identified more than 10 significant fraud and
corruption schemes in cases involving contracts. That is an
extraordinary level of fraud and corruption. It led to
convictions in some cases for bribery, wire fraud, and mail
fraud.
What troubles me is that this indicates systemic weaknesses
if the percentage is that high and the degree of fraud and
corruption that great. Of these contracts that were reviewed
and found to have significant fraud and corruption, what were
your responsibilities for these contracts?
Ms. Lute. Senator Collins, as I mentioned earlier, my
responsibilities were to ensure the support operations in the
area of personnel, finance, logistics, aviation,
communications, and IT, that those operations were mounted and
sustained for Peacekeeping operations worldwide. We had the
responsibility to raise requirements on the ground where the
field staff were concerned, and my staff at headquarters had
the responsibility for the technical review of bids, the
technical evaluation of the sufficiency. The negotiation and
award of contracts rested with the Department of Management.
Senator Collins. Right, but you are establishing the
requirements, correct? The people who reported directly to you?
Ms. Lute. Senator, the people who were raising the
requirements on the ground were mission personnel, and there
were some removed, but certainly those on the support side,
particularly early on, as I mentioned, without going into the
complexities of the U.N. reporting chain, fell under my
responsibility.
Senator Collins. So when you became aware of the extent of
corruption and fraud, what actions did you take? There were 22
reports, and I could go through them, asking you what you did
in response to each one, but give me an answer on what actions
you took when the Procurement Task Force found widespread fraud
and corruption that indicated there were systemic weaknesses
that allowed this to occur.
Ms. Lute. Senator, some of the actions I took directly--in
fact, some of the cases, we referred to the Procurement Task
Force. Without the ability to recall those for you precisely, I
do know that is, in fact, the case. Whenever an allegation was
raised, we took immediate steps, if necessary, to suspend
people from the duties that they were performing to ensure that
a full investigation was conducted and then that appropriate
action, management action, was taken in response to that
investigation.
Now, we also addressed----
Senator Collins. Those are personnel actions, so that was
one response.
Ms. Lute. Right, and----
Senator Collins. But did you put into the system additional
reviews or safeguards or higher-level approvals to ensure the
integrity of the procurement process?
Ms. Lute. As I mentioned earlier, Senator, we did. I
instituted a Requirements Review Board at a senior level to
ensure that significant requirements being raised in the field
had an additional layer of evaluation. I instituted the traffic
light system that I mentioned earlier, particularly at the
beginning phase, to deal with start-ups of operations because
they were coming fast and furiously at the U.N. and it was
essential that we have senior-level engagement and oversight.
And this was a weekly meeting that I myself chaired, together
with senior personnel on the ground in the field, with a common
framework of the support issues that were being engaged,
including major procurements.
We worked very closely with the Department of Management on
the issue of personnel. For example, part of our problem, in my
view, was the fact that we were always short of experienced
procurement personnel with the expertise necessary for these
very complex commercial transactions. I am very aware of the
challenges that exist in raising requirements accurately, that
can be accurately costed, and the importance of being able to
present those requirements to the procurement officials. We
instituted a program to identify, recruit, train, and bring on
board procurement people because while they do exist in the
world, those who can function with an expertise, fluent in
English, fluent in other languages, in remote and difficult
parts of the world, are relatively few in number. So this was
part of our structural problem we had to address.
Senator Collins. Thank you, Mr. Chairman.
Chairman Lieberman. Thanks again, Senator Collins. Senator
Coburn.
Senator Coburn. Thank you.
Ms. Lute, would you give us copies of the letters you wrote
urging the U.N. to disclose the reports?
Ms. Lute. Yes, Senator.
Senator Coburn. Thank you. I would also note for the record
that Mr. Appleton never audited Ms. Lute's performance or her
response or the outcomes. He only spoke of her verbal
commitment to react.
I would also remind my colleagues on this panel that we
voted 97-0 for transparency within the U.N. When it went to
conference, that came out. So the problems that we are having
today are not Ms. Lute's fault in terms of having knowledge, it
is our fault because we chose to make transparency important to
the United Nations, and then when it went to conference, we
pulled it out, even though 97 of us said we should have that
transparency. I would hope that we would not allow that to
happen this year on the foreign operations appropriation
budget.
Ms. Lute, in my pre-hearing questions, I asked you how many
no-bid contracts were issued for Peacekeeping missions you
deployed. You did not answer that question, but you offered
that you only participated in one of those, and we have
discussed that already, and that may or may not have been
appropriate. I cannot judge that. Do you know the answer to my
original question? How many no-bid contracts were issued under
your authority?
Ms. Lute. Under my authority, Dr. Coburn, as I said, I had
no authority to negotiate or award contracts.
Senator Coburn. Well, you issued one, the one to Lockheed.
Ms. Lute. I made a recommendation to the authorities that
based on the analysis of our staff at the time, this would be a
solution for a very limited portion of one phase of the complex
deployment to Darfur.
Senator Coburn. In other areas outside of your direct
involvement, how many other recommendations were made for no-
bid contracts?
Ms. Lute. Dr. Coburn, I do not have the knowledge to answer
your question.
Senator Coburn. From the people that worked for you, you do
not know that answer?
Ms. Lute. I am not aware of any other time at which we
recommended a sole source solution.
Senator Coburn. OK.
Ms. Lute. I certainly did not.
Senator Coburn. When I asked you about the 2007 report by
the U.N. Office of Internal Oversight Services that found
inconsistent accountability standards applied to personnel you
recruited and deployed, you mentioned that you did not have
access to these types of reports on your performance. How can
you be an effective manager if you have no access to your own
performance data?
Ms. Lute. Dr. Coburn, in response to the OIOS reports, we
wrote detailed management letters. In many cases,
overwhelmingly, we agreed with the findings of OIOS that we
could improve the way we were doing business. Peacekeeping
experienced unprecedented growth in the 60-year history of
Peacekeeping during my time there. It was our commitment to not
only fulfill the responsibilities that were being given to us
by the members of the Security Council, of which the United
States is a member, but also that we would improve the way we
ran ourselves and account.
Senator Coburn. But you would agree that field procurement
was under your purview?
Ms. Lute. Again, Dr. Coburn, without going into the
intricacies of the U.N. organization, those personnel on the
ground in the various missions reported to their individual
missions.
Senator Coburn. I understand that, and I understand the
complexity, but either it was under your purview or it was not.
Is that a yes or a no?
Ms. Lute. Field procurement was an area of Peacekeeping
procurement, was an area that under the general responsibility
of support to Peacekeeping operations----
Senator Coburn. So the answer is yes. Was there at any time
after you became aware of the significant problems in terms of
procurement and fraud and kickbacks and everything else that
you actually addressed the Security Council on those issues
with the depth of the problem, made them aware of the depth of
the problem, so that they, in fact, could make changes at that
level at the U.N.?
Ms. Lute. Dr. Coburn, the Security Council and the General
Assembly have different sets of responsibilities----
Senator Coburn. I understand that. I want you to answer my
question. Was there any time at which you made the members of
the Security Council aware of the depth of the problem and the
significant complications associated with Peacekeeping
procurement?
Ms. Lute. I am aware many times, Dr. Coburn, when I spoke
to member states of the United Nations in various forums, in
various oversight committees----
Senator Coburn. Let me ask it a different way. Was there
ever an opportunity presented to you that you could have made
the entire Security Council aware?
Ms. Lute. Again, Dr. Coburn, as the Security Council, I do
not recall. This is not normally an area of the Security
Council's purview. It is a member--it belongs to the General
Assembly under the arrangements of the United Nations. But the
oversight body is the Fifth Committee----
Senator Coburn. So you never had an opportunity to make
them aware of it?
Ms. Lute. The members of the Security Council were
certainly aware of the challenges that Peacekeeping faced----
Senator Coburn. A different question.
Ms. Lute [continuing]. And of our----
Senator Coburn. Did you ever make them aware of the
significant difficulties in the Peacekeeping procurement?
Ms. Lute. I personally made member states of the United
Nations----
Senator Coburn. No, I am talking----
Ms. Lute [continuing]. Including members of the Security
Council----
Senator Coburn. Did you at any time in the collective body
where you had an opportunity to make them aware? Of the
Security Council.
Ms. Lute. I would have to recall, Dr. Coburn, if the
Security Council ever took up this issue specifically. If they
had, I would have appeared.
Senator Coburn. Let me go on to another area. The 2008 U.N.
audit of your Liberia mission found that you deployed the
mission without adequate safety and health programs, that your
personnel were suffering from a high rate of malaria and dengue
fever. When I asked you about this in the pre-hearing
questions, you stated you were not aware of the details
associated with Peacekeeping's response to the report and
blamed the high rate of infection due to personnel you trained
and deployed not taking medicines.
The U.N. spends hundreds of millions of dollars annually on
malaria prevention programs. Why did you not mobilize this
resource and expertise to protect your own personnel?
Ms. Lute. Dr. Coburn, the care and safety of Peacekeepers
in the field is the responsibility of all of the leadership of
Peacekeeping. Peacekeepers, when they are deployed, begin in
the countries that they come from. There is rigorous training
that a number of countries put their troops through, including
safety and health matters, as well. That training is reiterated
in missions at many opportunities, and it is an area--the
safety, again, and health of the troops is one for which----
Senator Coburn. Were you aware of how your Department
responded to the alarming report that they, in fact, had high
rates of malaria infection?
Ms. Lute. Earlier, Dr. Coburn, I was aware when these
issues came up in other mission areas, and I was aware of it at
an earlier time when there was concern about malaria in
Liberia, and we did take steps to ensure that training was in
place and that appropriate medicines and medical procedures
were in place, as well.
Senator Coburn. If it were not for this U.N. audit, would
you have been aware of the high infection rates?
Ms. Lute. If that were the case, Dr. Coburn, yes, we would
have been aware because it deeply impacts the ability of a
mission to perform its assigned tasks.
Senator Coburn. All right. I am out of time.
Chairman Lieberman. Thanks, Senator Coburn. I think Senator
Collins and I just have one more question each. I do not want
to cut you off, but I cannot stay for too----
Senator Coburn. I do not have many more questions.
Chairman Lieberman. So we will do one more 7-minute round,
but I think I am only going to take one question worth of it.
So just to pull back a bit from the U.N. and even from
management, I want to ask you this substantive question. What
would you say should be the first one, two, or three policy
priorities, homeland security priorities of the Department as
you are considered to be its Deputy Secretary?
Ms. Lute. Certainly, Mr. Chairman, as the Secretary has
herself said, the primary focus of the Department is to keep
this country and keep Americans safe from the threat of
terrorism from any future terrorist attacks. But the Department
equally has a big job to do. It has unique missions in the
areas of maritime security, aviation security, border security,
as well, and it is mobilizing, as the Secretary has said to
this Committee, to address an immediate response on the
Southern border. If I were confirmed, I would expect to work
with the Secretary on these priorities, the priorities also
dealing with immigration, and the other challenges that the
Department of Homeland Security has been given.
Chairman Lieberman. I want to just pick up from something
you said and draw out on it a bit. It has been a priority of
this Committee to improve the security of non-aviation
transportation. We have done a very good job, I think, at
improving aviation transportation, but we have a ways to go on
trains, buses, and, of course, just following the history of
terrorism, Mumbai, the earlier Mumbai rail attack, London,
Madrid, unfortunately, terrorists tend to move in that
direction. Do you have any ideas about that?
Ms. Lute. I am certainly aware, Mr. Chairman, that concern
exists that this is an area that needs greater focus by the
Department, and it would be an area, if I am confirmed, where I
would expect to hear from and engage extensively with State and
local officials as well as with the private sector. The
critical infrastructure on the ground in this country in many
cases is in private hands, in municipal hands, and we need to
work jointly to ensure that it has the priority that aviation
security has had.
Chairman Lieberman. Good. Thank you. I have no further
questions. Senator Collins.
Senator Collins. Thank you, Mr. Chairman. I am going to
submit for the record several questions that I did not get to
today, but I do want to bring up two final points.
First, in June, DHS will implement the Western Hemisphere
Travel Initiative at the land ports of entry, which will
require travelers to provide compliant documents for entry into
the United States. I am concerned, however, that the
technological infrastructure that is necessary to process those
documents, including passport cards, efficiently will not be in
place by June at all of the land ports of entry, and let me
give you an example from my home State of Maine.
The port of entry in Calais, Maine, is the sixth busiest on
the Northern border. It is under construction, and it will not
be completed until the end of this year. Until the port is
completed and the new technology is in place, the processing of
passengers and vehicles at this port of entry could be backed
up and slowed when the new Western Hemisphere Travel Initiative
goes into full effect in June.
Now, it is clearly important that the Federal Government
continue its efforts to strengthen our border security and to
protect the Nation from terrorist threats, but we have to do so
in a way that does not unnecessarily hinder the travel of
legitimate individuals who regularly cross the border and
obviously pose no threat to our national security.
What will you do to ensure that the Travel Initiative is
implemented in a way that takes into account the fact that we
have not done the investments in infrastructure at all of the
land ports of entry?
Ms. Lute. Senator Collins, I am aware of the concerns
regarding the aging infrastructure. On average, the ports of
entry are over 40 years old, and in particular, in the context
of fielding the Western Hemisphere Travel Initiative, the
Department has a three-part strategy, as you know: One, to get
the documents ready; two, to ensure that the technology is in
place and functioning; and three, that there is an aggressive
outreach program to ensure that people are aware of what the
requirements are, and the Secretary has said that the
Department will continue to be on track for the June deadline.
And if I am confirmed, I would expect to look at this very
closely to see that we do strike the right balance, as I
mentioned earlier, between the safety and security of our
borders, but facilitating and, indeed, encouraging legitimate
trade and travel, and I would hope to work with you and with
other Senators from Northern border States where ports of entry
exist to ensure that this is the case.
Senator Collins. Thank you. In response to Senator
Lieberman's standard questions of all nominees, you indicated
your willingness to respond to requests for information from
this Committee. I would be remiss in my duties as the Ranking
Minority Member if I did not ask that you also treat requests
from the Minority in the same manner as you do from the
Chairman, although I think you will find that almost always our
requests will be joint.
Ms. Lute. You have my commitment.
Senator Collins. Thank you. Thank you, Mr. Chairman.
Chairman Lieberman. Thanks again, Senator Collins. Senator
Coburn.
Senator Coburn. First of all, we are going to be allowed
questions for the record?
Chairman Lieberman. We are.
Senator Coburn. I would ask unanimous consent that if we do
that, we do not have a Committee markup of this nomination
until those responses are returned.
Chairman Lieberman. I am going to reserve the right to
object. Here is my problem, my friend. Secretary Napolitano,
every time she sees me, before we get to substantive matters,
says, when are you going to act on the nomination of Jane Holl
Lute? I need a Deputy. So as you know, I think it is the
intention of the Committee to mark up this nomination and other
matters next Wednesday. So, frankly, that depends on how many
questions you are going to ask.
Senator Coburn. There are not going to be more than maybe a
dozen.
Chairman Lieberman. I suppose there is always the
possibility that the nominee could say she cannot answer the
questions, right?
Senator Coburn. That is what we have received so far.
Chairman Lieberman. Well, with that understanding, I am not
going to object. We are going to ask that the questions be
filed by the end of business tomorrow----
Senator Coburn. Without a problem.
Chairman Lieberman [continuing]. So that we can move them
quickly and give you some time before the markup on Wednesday.
Senator Collins. Mr. Chairman, in view of the conversation
you have just had, I would suggest that the questions be
provided by the end of today because if we are going to be fair
to the nominee----
Senator Coburn. Absolutely. We will do our best to do that.
Chairman Lieberman. Excellent. We will do that.
Senator Coburn. Ms. Lute, you were responsible for the
U.N.'s response to the sexual abuse and exploitation of
refugees by the personnel that were deployed by your Department
to the field. The most recent assessment of how you responded
comes from Human Rights Watch, which reports there was a lack
of speed of investigations, a lack of transparency and follow-
through, and a lack of breadth of the investigations. My staff
also spoke individually to independent workers and observers on
the ground of several missions where abuse took place, and we
are told there are dozens of children victimized by
Peacekeeping personnel that 4 years later--4 years later--still
have not received U.N. assistance or had their basic victims'
rights protected.
Why do we have no record of the number of victims you
assisted, the type of care you provided, or the number of U.N.
personnel that have been successfully prosecuted?
Ms. Lute. Dr. Coburn, I was in charge, as you outlined,
with the U.N.'s effort to fix what is an inexcusable and
terrible problem. I began that effort and dealt with it
structurally and comprehensively to put in place a program of
prevention in terms of clarifying what the standards were,
undertaking to make those standards applicable to all
personnel, training, awareness, of putting in place in every
mission a conduct and discipline team that never existed before
to ensure that steady progress and improvement would be made in
this area.
In the area of enforcement, we undertook expeditiously to
work with OIOS so that when issues were raised, they were
addressed properly.
Senator Coburn. I understand that, but the question I asked
you is why do we not have a record of the number of victims
that were assisted, the type of care that was actually
provided? You are talking about the prevention in the future,
which I recognize is part of your function, as well, and the
number of U.N. people who were prosecuted. Why do we not have
that record?
Ms. Lute. Dr. Coburn, in terms of victims' assistance and
remediation, there is in place as a result of one of the
working groups on the task force that I chaired a comprehensive
victims' assistance policy that was approved by the General
Assembly about a year ago.
Senator Coburn. Yes, let us go to that. In response to my
pre-hearing questions, you stated that in 2007, you convened a
high-level meeting that issued a statement of commitment with
standards of behavior. Why did it take 2 years to implement
standards of behavior against abusing refugees under the U.N.'s
care? Why did it take 2 years?
Ms. Lute. Dr. Coburn, let me share your frustration. Let me
share a lack of understanding why things like this take as long
as they do. No one can be satisfied that it took us as long as
it did to put in place programs to address victims' concerns.
But a program is in place. Programs are also in place--it is
not possible now for someone to deploy to a Peacekeeping
mission and not know what the standards are. It is not possible
for a leader in Peacekeeping to not know that they are
personally held accountable to the Secretary-General for being
aware of the conduct and discipline within their missions. And
the organization is also taking steps to implement the victims'
assistance policy, which was approved by the General Assembly.
Senator Coburn. The victims' assistance policy, you were in
charge of that 2-year effort to have them adopt a victims'
support strategy. That was in 2008. That was 4 years after the
scandal erupted. Is 4 years a long time to develop a victims'
assistance program, and what did we do for all the victims that
were abused prior to 2008?
Ms. Lute. Dr. Coburn, I agree with you that it took a long
time, and no one can be satisfied with how long it has taken to
address these issues in a comprehensive structural way. The
policy that we put in place before the formal victims'
assistance policy was adopted by the General Assembly was that
Peacekeeping missions would work with U.N. sister agencies, in
particular UNICEF, who would in turn work with nongovernmental
organizations on the ground to provide victims' assistance. But
it was our aim with this victims' assistance policy to engage
missions more directly in that process.
Senator Coburn. One other question. After it became evident
to you that Peacekeeping abuse was a widespread problem in
these operations, why did we not then require countries to
prosecute their troops caught abusing refugees as a condition
of working with the U.N.?
Ms. Lute. The member states of the United Nations retain
the sovereign rights and authorities over their troops. I think
on part of my behalf this morning, the Committee has a letter
from Prince Zeid, the Jordanian Ambassador to the United
States,\1\ who was in charge of a comprehensive review of this
challenge as directed by the Secretary-General in 2004. He
indicated that the member states do have to take responsibility
and follow up on these actions.
---------------------------------------------------------------------------
\1\ The letter from Prince Zeid referenced by Ms. Lute appears in
the Appendix on page 444.
---------------------------------------------------------------------------
We did institute a policy in Peacekeeping where we reduced
the amount of time in following up on member states on the
actions that were taken when soldiers were found to have
engaged in this inexcusable behavior. We reduced the amount of
time and we instituted a more thorough process of following up
with the member states, but the authority rests with them.
Senator Coburn. You would agree that there was nothing that
required you to take troops from countries that had legalized
pedophilia?
Ms. Lute. Dr. Coburn, I was very associated with the
message in the United Nations that if soldiers were not
prepared to uphold the standards of the United Nations, then
the United Nations should be prepared to do without their
services.
Senator Coburn. Thank you.
Mr. Chairman, I will submit the rest of my questions for
the record. I would just ask the nominee, first of all, you
have been very cooperative. Thank you. You had a tough job
there, I do not doubt that at all. But I would hope that you
will answer the questions that I submit rather than defer not
to answering them. I think it will speak much to your character
if you do so. Thank you.
Chairman Lieberman. Thanks, Senator Coburn.
Incidentally, when I said that you might not answer all the
questions in time, I meant if it required more time to get
documents from elsewhere to submit back to us prior to the
markup next Wednesday. I know you will answer all the questions
of Senator Coburn and other Members to the best of your
ability.
Ms. Lute. Yes, Mr. Chairman.
Chairman Lieberman. I do want to say, Senator Coburn has
asked some very tough but important questions, and my own
conclusion about these, based on the documents, the work of our
staff, the documents before the Committee, our overall record,
is that the problems here were in the U.N., and that actually
by the testimony of the two people whose letters I quoted
earlier, including the outside investigator, and the letter
from His Royal Highness Prince Zeid, who was then Jordan's
Ambassador to the U.N. and was charged by Kofi Annan to
investigate these cases of sexual abuse and exploitation by
U.N. Peacekeepers, you rose up as unusual in trying to take on
those problems.
And I will just quote briefly from Prince Zeid's statement.
``From the very minute I began to work on this,'' which was an
assignment Kofi Annan had given him, ``Assistant Secretary-
General Lute was fiercely committed to ridding the U.N. of this
dreadful phenomenon,'' the sexual exploitation, ``and when most
of her colleagues (in and out of the U.N. Secretariat) were
largely dismissive of the allegations against Peacekeepers, she
would have none of it. Instead, she fought with equal
determination to unwrap these disturbing practices. It is worth
noting in this context that in earlier years, an allegation
against a U.N. Peacekeeper would predictably be concealed from
public view by a very embarrassed United Nations. Ms. Lute
sought to change all that.''
So I think Senator Coburn is really focusing on some real
problems that ought to concern us in regard to the U.N., to
which we give a substantial amount of money every year, but I
think ultimately, you stood up in the midst of all that against
all that, and so that is why I am so comfortable in supporting
you.
I want to thank you for appearing before the Committee
today.
Without objection, I am going to amend this from what we
normally say. The record will be kept open until the end of
business today for the submission of any written questions.
Tomorrow at the end of business will be the deadline for any
additional statements for the record from yourself or anybody
on the Committee. And then we will look forward to going to
markup on your nomination along with a lot of other business we
have next Wednesday.
I thank you very much.
Ms. Lute. Thank you, Mr. Chairman.
Chairman Lieberman. I wish you the best.
The hearing is adjourned.
[Whereupon, at 12 p.m., the Committee was adjourned.]
A P P E N D I X
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