"We were not prepared to sign off on the deal without the successful
negotiation of the assurances," Baker told the AP.
Officials from the White House, CIA, departments of State, Treasury,
Justices, and others looked for guidance from Homeland Security
because it is responsible for seaports. "We had the most obvious stake
in the process," Baker said.
Baker acknowledged that a government audit of security practices at
the U.S. ports in the takeover has not been completed as part of the
deal. "We had the authority to do an audit earlier," Baker said.
The audit will help evaluate DP World's security programs to stop
smuggling and detect illegal shipments of nuclear materials at its
seaport operations in New York, New Jersey, Baltimore, New Orleans,
Miami and Philadelphia."


Note that while the talking heads today on TV are saying DPW would not
be responsible for security, they really are and DHS was supposed to
audit their ability to perform security.  But DHS hasn't done the
audit yet.  Not surprised. DHS was supposed to audit security
practices at all U.S. ports over three years ago per a requirement in
an appropriations bill.  But they have yet to do a comprehensive
audit.  Thus, without any benchmarks to work from, they have also
failed to develop a comprehensive security plan providing for phased
upgrades and security protection standards.  To date, DHS has
piecemealed port security requirements with fragment plans such as the
Cargo Security Initiative.  
Note, if Congress and the people had not stepped in, the deal would
have gone forward WITHOUT THE AUDIT.  Not only failure but COMPOUNDED
failures in this whole mess because of lax port security.  DHS failed
at Katrina, threw lots of money at airport security to birth a
horrendously awkward system and has failed miserably at even finding
out the sad state of port security, much less fixing it. And don't
forget what similarly hasn't been done by DHS for the chemical and
information technology critical infrastructures as well.
Note, one port authority has already obtained an injunction, the
Governor of NJ is suing and at least one company in one of the ports
is also filing suit and DPW has delayed the transaction.  Hadley may
be able to get in the Famous Last Words record book.

David Bier

http://news.yahoo.com/s/ap/20060225/ap_on_go_pr_wh/ports_security

 Homeland Security Objected to Ports Deal

By TED BRIDIS, Associated Press Writer 29 minutes ago

The Homeland Security Department objected at first to a United Arab
Emirates company's taking over significant operations at six U.S.
ports. It was the lone protest among members of the government
committee that eventually approved the deal without dissent.

The department's early objections were settled later in the
government's review of the $6.8 billion deal after Dubai-owned DP
World agreed to a series of security restrictions.

The company indefinitely has postponed its takeover to give President
Bush time to convince Congress that the deal does not pose any
increased risks to the U.S. from terrorism.

Some lawmakers have pressed for a new and intensive review. Despite
persistent criticism from Republicans and Democrats, the president has
defended his administration's approval of the ports deal and
threatened to veto any measures in Congress that would block it.
Hearings are to continue this week.

A DP World executive said the company would agree to tougher security
restrictions to win congressional support only if the same
restrictions applied to all U.S. port operators. The company earlier
had struck a more conciliatory stance, saying it would do whatever
Bush asked to salvage the agreement.

"Security is everybody's business," senior vice president Michael
Moore told The Associated Press. "We're going to have a very open mind
to legitimate concerns. But anything we can do, any way to improve
security, should apply to everybody equally."

The administration approved the ports deal on Jan. 17 after DP World
agreed during secret negotiations to cooperate with law enforcement
investigations in the future and make other concessions.

Some lawmakers have challenged the adequacy of a classified
intelligence assessment crucial to assuring the administration that
the deal was proper. The report was assembled during four weeks in
November by analysts working for the director of national intelligence.

The report concluded that U.S. spy agencies were "unable to locate any
derogatory information on the company," according to a person familiar
with the document. This person spoke only on condition of anonymity
because the report was classified.

Sen. Carl Levin (news, bio, voting record), D-Mich., and others have
complained that the intelligence report focused only on information
the agencies collected about DP World and did not examine reported
links between UAE government officials and al-Qaida leader Osama bin
Laden before the Sept. 11 attacks.

The uproar over DP World has exposed how the government routinely
approves deals involving national security without the input of senior
administration officials or Congress.

President Bush, Homeland Security Secretary Michael Chertoff, Defense
Secretary Donald H. Rumsfeld and even Treasury Secretary John Snow,
who oversees the government committee that approved the deal, all say
they did not know about the purchase until after it was finalized. The
work was done mostly by assistant secretaries.

Snow now says he may consider changes in the approval process so
lawmakers are better alerted after such deals get the go-ahead.

Stewart Baker, a senior Homeland Security official, said he was the
sole representative on the Committee on Foreign Investment in the
United States who objected to the ports deal. Baker said he later
changed his vote after DP World agreed to the security conditions.
Other officials confirmed Baker's account.

"We were not prepared to sign off on the deal without the successful
negotiation of the assurances," Baker told the AP.

Officials from the White House, CIA, departments of State, Treasury,
Justices, and others looked for guidance from Homeland Security
because it is responsible for seaports. "We had the most obvious stake
in the process," Baker said.

Baker acknowledged that a government audit of security practices at
the U.S. ports in the takeover has not been completed as part of the
deal. "We had the authority to do an audit earlier," Baker said.

The audit will help evaluate DP World's security programs to stop
smuggling and detect illegal shipments of nuclear materials at its
seaport operations in New York, New Jersey, Baltimore, New Orleans,
Miami and Philadelphia.

The administration privately disclosed the status of the security
audit to senators during meetings about improving reviews of future
business deals involving foreign buyers. Officials did not suggest the
audit's earlier completion would have affected the deal's approval.

New Jersey's Democratic governor, who is suing to block the deal, said
in his party's weekly radio address on Saturday that the
administration failed to properly investigate the UAE's record on
terrorism.

"We were told that the president didn't know about the sale until
after it was approved. For many Americans, regardless of party, this
lack of disciplined review is unacceptable," Jon Corzine said.

Bush's national security adviser, Stephen Hadley, said there was no
going back on the deal.






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