Feature: * Turkeys in a Gilded Cage

*Where Does the Buck Stop?

 

CLIQUEZ ici! / CLICK Here!  

PERIODICAL - Nov 2011 No.3

Issue No: 201148

 

 

Veteran Voice.info

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Turkeys in a Gilded Cage

By Perry Gray, Editor-in-Chief VVi

It has been over a year since Sean Bruyea went public with information about how VAC illegally accessed and shared his personal information.  Apart from a few political statements, there has been no action by the federal government to either redress the matter or punish those guilty.  This is probably not surprising to many Canadians, who familiar with political procedures and the insincerity of democratic political bodies in Canada.  One of the most obvious examples of the failure of Canadian democracy is the current federal government’s lack of integrity in implementing one of its own policies, namely accountability. 

Now another veteran, Dennis Manuge, has announced that his personal information was illegally shared by VAC.  He will also be taking legal action in addition to continuing with his SISIP Clawback class action.

What must happen before the federal government takes the appropriate actions to end the mismanagement of VAC?

I think that it is time for a public inquiry to investigate the systemic problems of VAC and prevent future abuses by its senior officials.

Excerpt from Hansard, 26 Sep 2010:

Hon. Jack Layton (Toronto—Danforth, NDP):

“I would like to turn to another very troubling report that we read about today. Sean Bruyea, an advocate on behalf of veterans, a veteran himself who served this country, found out that the Conservatives have been rooting around in his private medical records. That is contrary not to only decency but to the law. We found that the Minister of Veterans Affairs was trying to find out about medical appointments.

Will the minister stand in his place and apologize today?

(1435)

Right Hon. Stephen Harper (Prime Minister, CPC):

Mr. Speaker, let us be clear about the facts. It appears that certain private information regarding this individual had been widely circulating in the bureaucracy and, by the way, before this government came to office.

That is completely unacceptable. Canadians take the privacy laws extremely seriously, especially for those who have served our country in uniform.

I understand the Privacy Commissioner is looking into matters such as this. The Privacy Commissioner will receive nothing but the full co-operation of this government to ensure that these kinds of things do not happen again.”

The former Minister of Veterans Affairs, Jean-Pierre Blackburn, stated that he would punish those involved in this privacy scandal; however, he never disclosed what he did before losing his seat in Parliament in the last election.  The current minister, Steven Blaney, has not provided any additional information on how this matter is being resolved.  He may not even be aware of the scandal unless his advisors at VAC have bothered to discuss it with him.

The Privacy Commissioner is looking into the matter, but seems reluctant to do so aggressively and even if his office does a thorough investigation, it lacks the powers to punish the guilty.

MVA Blaney will now have to deal with a second privacy scandal.  And more will likely follow as other Veterans access VAC correspondence to look for breaches.  Will he be more accountable and punish repeat offenders…or not?

The bottom line is that senior bureaucrats who have committed unlawful acts will likely go unpunished.  This is just another example of how undemocratic our governments have become. 

A number of political commentators have used the term “inverted totalitarianism” to describe the devolution of modern democracies.  Many are Americans critical of the US political system, which they claim is not the ideal model of a good democracy.  Instead they argue that the US has too many similarities with Hitler’s Germany and Stalin’s USSR.  This may be contrary to the beliefs of many citizens, who know that the US and other democracies opposed such totalitarian states in the Second World War and then the Cold War.  It is inconceivable to make comparisons between the US or Canada and those “evil empires”.  Or is it?

For Veterans, there have been many examples in recent history that the federal government has failed to adhere to democratic principles.  The most obvious one is the creation of the New Veterans Charter, which was completely developed by bureaucrats, who have little experience of the Veteran Culture and seemingly little inclination to educate themselves.  This is symptomatic of a much broader problem within governments in which the public services fail to serve the public and seem indifferent to the needs of the public. 

Canadians may elect politicians in the mistaken belief that these elected officials will implement their campaign policies.  The reality is usually quite different.  One major reason is that the politicians are dependent on the public service to do most of the work…or not.  Powerful organisations such as the Office of the Prime Minister (PMO), the Privy Council Office (PCO) and Treasury Board are often more influential in defining the policies that will affect how the public service operates. 

The PMO employs speech writers, strategists, and other specialists, who influence the prime minister's and cabinet's message, as well as keeping the prime minister informed on events that take place in government and across the country, and act as a link between the political party organisation and the government.  It is a partisan organisation supporting the political party that forms the government.

The PCO provides officially non-partisan advice and support to the Prime Minister and leadership, coordination, and support to the departments and agencies of the government. Officials play an important role in the formulation and implementation of public policy at the highest levels of government. Despite its influential roles, the public tends to know little about its operation and activities. 

The Treasury Board is responsible for accountability and ethics, financial, personnel and administrative management, comptrollership, approving regulations and most Orders-in-Council.  It is responsible for the management of the government by translating the policies and programs approved by Cabinet into operational reality and by providing departments with the resources and the administrative environment they need to do their work. 

The Gomery Commission (2004-2006) undertook an analysis of the federal government and the state of Canadian democracy in the wake of the sponsorship scandal. An element of the Commission’s report criticised the operation of the PCO. Under the current process, the prime minister enjoys full discretion in appointing senior staff.  This creates an environment in which the clerk and deputy ministers may become potentially beholden to partisan interests, as their careers depend largely on satisfying the expectations of the prime minister and the cabinet.

Of note, the federal government had not instituted any of the commission’s recommendations.  The prime minister campaigned in 2006 to reform the government:

As Conservatives we are looking for a Canada where corruption, waste and dishonesty are news of the past. This Policy Declaration sets out how a Conservative Government will be accountable, trustworthy, and committed to properly addressing issues that Canada faces today and in the future.”

“The Conservative Party is determined to enforce parliamentary principles of government accountability. Ministers in a Conservative Government will have authority and be accountable for the policies they implement and the administrative actions of their departments.”

Yet Prime Minister Harper rejected the majority support for Bill C-120 (to eliminate the marriage after 60 restrictions which were originally implemented to prevent so called “gold-diggers” or younger women from marrying older veterans for their pensions) three times.  He has also rejected majority votes to end the clawback of pensions after age 65 from Veterans.  Despite the government’s use of the military annuity to payoff the national debt ($16.5 billion and more to be withdrawn).  Instead of using these funds for the very people who pay into the annuity, the government prefers to deny so that it can spend the money elsewhere.  Grossly unfair to the Veterans Community.

On a regular basis, Canadians are provided with examples of the continuation of corruption, waste and dishonesty.  For Veterans, Sean Bruyea’s and Dennis Manuge’s revelations on the privacy scandal, statements by the former Veterans Ombudsman, Patrick Stogran, and VAC’s failure to implement almost 500 recommendations to the NVC are all examples of the ongoing systemic problems within the government. 

Overall this is symptomatic of the old quote “the more things change, the more they stay the same”.  While the public veneer of the government may change as different political parties win elections, the core remains the same.  One major difference between the American and Canadian governments is that in Canada there are usually few changes within the senior levels of the public service.  Deputy ministers and their senior subordinates are not routinely purged when a new party wins an election.  Thus the leadership of the PCO and TB does not change e Deven if the PMO does.  The so-called non-partisan senior advisors continue to influence the day to day operations of the government regardless of which party is in power.

Using the NVC as an example, it was introduced by the Liberals and the Conservatives stated that it would be changed when they were elected.  After more than five years in power, the Conservatives have only approved four recommendations despite much hype about new benefits for Veterans.  The reality is that very little has changed or is likely to change.  VAC continues to down size and reduce its expenditures in accordance with directives from PMO, PCO and TB. 

“Axe-wielding executives in the public service stand to earn big bonuses based on how much they cut in the run-up to the 2012 federal budget.

Treasury Board President Tony Clement says 40 per cent of “at risk” pay for senior managers will be based on how much they contribute to the Conservatives’ target of finding at least $4-billion a year in permanent savings.” Globe and Mail Published Tuesday, Oct. 11, 2011 

It is likely that VAC will cut up to $500 million, despite announcements last year that $2 billion dollars would be added to the department in the near future.  What numbers should Canadians believe?

While the deputy minister, Suzanne Tining, and her senior subordinates will likely collect their bonuses, employees at lower levels may lose their jobs as VAC considers reducing its staff by 500 (about 4500 people are employed by VAC).  But why are these senior officials being rewarded for their substandard performance?

Ms Tining admitted that a government study (Keith Coulter’s report of 2010) stated that VAC was not providing good support to its clients in many key programs.  She also admitted that IT was “in the dark, dark ages”.  An annual financial report also demonstrates that VAC is poorly managed.  In 2008, VAC spent 30 cents of every dollar or $1-billion of its $3-billion budget on funding “overhead.” But on the health care side, the inefficiency was even more pronounced with 71 cents of every dollar covering overhead and only 29 cents making it to the Veterans’ care. Of more than $1-billion budgeted to the healthcare division, only $266-million is paid out for Veterans’ treatment.

By contrast, the U.S. Department of Veterans Affairs spends only 10 cents of every dollar on operating costs with approximately 90 cents going directly to the veteran in the form of benefits or medical care. The U.S. has 100 times more employees in their healthcare division than Canada but its budget at $37-billion is only 37 times as large as the healthcare budget of VAC. 

Comparison with the oft-criticised Ontario Health Insurance Program (OHIP) highlights that VAC is a productivity-challenged organization. OHIP was projected to spend approximately $280-million to administer $12.9-billion in payments for health care. This equates to an operating cost of 2.1 cents for every dollar paid out for the healthcare of Ontario’s residents. 

Meanwhile Ms Tining bills the government (insert taxpayers) $2800 per month for an apartment in Ottawa, which she rarely uses.  This is more than any Veteran receives for a 100% disability award under the Pension Act on a monthly basis.  Her overall income excluding many expenses is more than 10 times the starting income for a Veteran under the NVC ($40,000). Ms Tining also has two offices; one in Chalottetown; and a second in Ottawa.  She lives very well while Veterans are wandering homeless on Canadian streets!

Why are people like the following allowed huge salaries, bonuses and expense accounts for failing Canadians?

Mary Chaput, Associate Deputy Minister

Keith Hillier, ADM Service Delivery and Commemoration

Bernard Butler, ADM Policy, Programs and Partnerships

Current and Recommended Cash Compensation for the EX and DM Groups

Level

Current 2008-2009

Recommended 2009-2010

Recommended 2010-2011

 

Salary Range Max.

Max. At Risk Pay

Max. Bonus

Salary Range Max.

Max. At Risk Pay

Max. Bonus

Salary Range Max.

Max. At Risk Pay

Max. Bonus

 

EX-1

$115,400

12.0%

3.0 %

$117,200

12.0%

3.0 %

$119,000

12.0%

3.0%

 

EX-2

$129,400

12.0%

3.0 %

$131,400

12.0%

3.0 %

$133,400

12.0%

3.0%

 

EX-3

$144,800

12.0%

3.0 %

$147,000

12.0%

3.0 %

$149,300

12.0%

3.0%

 

EX-4

$166,200

20.0%

6.0 %

$168,700

20.0%

6.0 %

$171,300

20.0%

6.0%

 

EX-5

$186,200

20.0%

6.0 %

$189,000

20.0%

6.0 %

$191,900

20.0%

6.0%

 

DM-1

$208,300

20.0%

6.0 %

$211,500

20.0%

6.0 %

$214,700

20.0%

6.0%

 

DM-2

$239,600

25.0%

8.0 %

$243,200

25.0%

8.0 %

$246,900

25.0%

8.0%

 

DM-3

$268,300

25.0%

8.0 %

$272,400

25.0%

8.0 %

$276,500

25.0%

8.0%

 

DM-4

$300,400

30.0%

9.0 %

$305,000

30.0%

9.0 %

$309,600

30.0%

9.0%

 

These three executives and other senior VAC officials earn lots of money and claim thousands of dollars in expenses, but can not even properly explain how their department operates or why there are so many problems.  Why is it necessary to have so many employees in administrative positions in Charlottetown (about 1500) with so few employed elsewhere (about 1500)?  This does not include the only VAC medical facility in Quebec (about 1200) because it is slated to become a provincial hospital in the near future.  Overall, there is a ratio of one staff employee for every employee outside the national HQ.  Ridiculous.

They are turkeys in a gilded cage.  They adhere to policy and procedures that do not benefit the Veterans Community.  They have proven to be poor leaders and managers.

It is time that the stakeholders had a much bigger and influential role in the department that serves the Veterans Community.  Why are Veterans denied what shareholders in a publicly traded corporation have?  If the DM is entitled to a salary similar to a CEO, then Veterans should be treated like share holders. Rather than a hand-picked few representatives getting invitations to stakeholders meetings, there should be a general invitation to the Veterans Community.   It would be very different if 100,000 attended each meeting. 

Stephen Harper made this statement before becoming prime minister:

All too often we hear stories of veterans who are ignored or disrespected by government.  What a shameful way to treat men and women who risked their lives to defend Canada.  This is a shame will end with the election of a new government.”

Well it has been six years and the Veterans Community is still waiting for his cabinet to make good on their commitments.  I think that he is not really interested, thus is anti-Veteran.  After appointing three different ministers, none of whom have shown more than minimal interest; it is time to consider other options.

What Veterans desperately need is a public inquiry to examine the machinations of VAC to expose its corruption and inadequacies.  There needs to be a revolutionary approach in ensuring that the Veterans Community is truly treated with dignity and respect to honour its willingness to defend Canadian democratic principles.  This has to be much more than the tired old lip-service currently influencing VAC’s operations. 

 Remember the quote that was used in an earlier editorial:   

Dissent Is What Rescues Democracy From A Quiet Death Behind Closed Doors. Molly Ivins

Here is a summary of the last major review of VAC.  It influenced what Canada provided to its Veterans Community and was supported by many Veterans groups.  It is time for another such review and in a public forum.

 

The Woods Committee (Commission of Inquiry)

 

In September 1965 another process of reform was launched when the government announced the appointment of a three-person committee to survey the organization and work of the Canadian Pension Commission. It was to report to the Minister of Veterans Affairs but not be connected with either the Department of Veterans Affairs or the Canadian Pension Commission. The committee, "though not limited in the scope of its report," was instructed "to study the organization, methods and procedures used in the adjudication of disability and other pensions paid under... the provisions of the Pension Act."  Justice Mervyn Woods of the Saskatchewan Court of Appeal, a veteran of the Second World War, was chosen to chair the committee. He had served in the Royal Canadian Navy, had retired with the rank of Lieutenant Commander, and was dominion president of the Royal Canadian Legion from 1960 to 1962. The other committee members were Walter J. Lindal, a retired judge of the County Court of Manitoba and a veteran of the First World War, and Brigadier Jean-Pierre Giroux, who soon resigned to accept an appointment to the Quebec Civil Service Commission. Giroux's successor was Colonel Gerard A.M. Nantel, a Second World War veteran and a member of the Quebec bar. He was still in uniform and was serving in the office of the Judge Advocate General. The secretary of the committee was H. Clifford (Cliff) Chadderton, executive secretary of the War Amputations of Canada and one of the country's best-known Second World War veterans. H.A. Davis served as assistant secretary.

 

The committee was supposed to report in three months, but Woods and his colleagues laboured for a much longer period. When notices inviting submissions were placed in newspapers and veterans' publications, the "response exceeded all expectations."  To deal with the volume of interest expressed the committee held forty-one hearings in Toronto, Ottawa, and Quebec City between 18 January and 20 June 1966. The committee heard from thirteen Members of Parliament, one private individual, and representatives of fourteen veterans' and dependants' organizations, as well as the Canadian Pension Commission, the Veterans' Bureau, and the Canadian Forces. In addition, it received more than three hundred letters containing questions, recommendations, suggestions, and complaints, as well as briefs from organizations not represented at the hearings.

 

To inform themselves better, the committee members also attended various appeal and "leave to re-open" hearings in Montreal, Winnipeg, Regina, and Ottawa; they inspected the quarters of the Canadian Pension Commission, met with officials of the organization, and informally visited Veterans' Bureau offices in Ottawa and Toronto.  Nowhere did they find a complete, organized collection of material that would enable them to conduct a thorough study of the commission. However, thanks to the "capable and untiring efforts" of Cliff Chadderton, the committee members had ready access to "co-ordinated information bearing on many of the problems raised for consideration." Since many of these had originated in the Pension Act or "had been developing for some 40 years," the committee quickly concluded that " examination, thorough research, and possible analysis of various approaches" was called for and that this could not be done hastily.

 

The committee spent its first six months on research, familiarization, and hearings.  It then evaluated the evidence before it and in 1967 produced a comprehensive and lengthy Report of the Committee to Survey the Organization and Work of the Canadian Pension Commission, which Minister of Veterans Affairs Roger Telliet tabled in the House of Commons on 26 March 1968. In the report the committee concluded that its review had been "long overdue." There had been " an understandable tendency" in the Canadian Pension Commission "to let sleeping dogs lie." Woods found that the Pension Commission had "a propensity to be satisfied with all that is not criticized" and "a tendency ... to be content with an answer to criticism that satisfies the one giving it." The committee found that the most serious flaw in administering the Pension Act was the commission's tendency "to view its operation as one which can best be carried out on the basis of providing only limited public information in regard to its policies and interpretations." Echoing remarks from the Ralston Commission forty years earlier, Woods found that the administration of the Act, on which so many Canadians depended, had about it an "air of secrecy" that "should disappear."

 

Based on this analysis and taking care not to deal with financial aspects of pensions, the committee tabled 148 recommendations. These were designed to improve matters without interfering with the day-to-day work of the commission. The Pension Commission, the report pronounced, "has over the years since its inception developed its own way of doing things. In so far as we have been able to determine, it is on the whole operating satisfactorily, and generally speaking, has the confidence and respect of those it serves. While we are making a number of recommendations that would require some revision of its activities, we have tried to set these out in a way that will cause minimal disruption. We have tried to fit the recommendations to this pattern. This we trust will lead to minimal interference with established principles and procedures consistent with necessary or desirable change."

 

On one key issue - how appeals should proceed under the Pension Act - the committee was divided. Under the existing system, an appeal was heard by a three-member appeal board drawn from the members of the commission itself, and it could include members who had already been involved in turning down the applicant. Not surprisingly, this system led to claims that the commissioners banded together to uphold their decisions. The majority recommendation of the committee, by Justice Woods and Colonel Nantel, was that a pension appeal board should be established.   This board would be independent but would report to Parliament through the Minister of Veterans Affairs. It would have the final say on both pension appeals and the interpretation of pension legislation. The minority recommendation (not acted upon) put forward by Judge Lindal, was that an ombudsman be appointed.  Lindal also suggested that the official should report through the Minister of Veterans Affairs and, in effect, should attempt to resolve pension issues by mediation.

 

The Woods Committee also called for the amendment of section 70 of the Pension Act, known as the "benefit of the doubt" section. Under this provision, pension applicants did not have to prove their cases beyond a shadow of doubt. By the same token, the commission, when in doubt, was required to weigh evidence in favour of an applicant. The intention here was straightforward, but the administration of the section was controversial. Accordingly, the committee called for a revised section 70 that would be clear and unequivocal. In the same spirit of fairness and equity, the committee recommended that those taken prisoner at Hong Kong in 1941, who had endured a long captivity of privation, should be given special consideration in the payment of pensions.

 

The Woods Report, the work of three veterans of the world wars (one of them still serving), was well received by Canada's veterans' organizations. In 1969 ten of them issued a joint statement, which was distributed to all Members of Parliament, urging immediate action on the recommendations. The organizations involved in this initiative, the first of its kind for some thirty-five years, were the Army, Navy & Air Force Veterans of Canada, L'Association du 22ième incorporatée, the Canadian Corps Association, Inc., the Canadian Paraplegic Association, the Hong Kong Veterans Association, the National Council of Veteran Associations in Canada, the Air Force Association of Canada, the Royal Canadian Legion, the Sir Arthur Pearson Association of War Blinded, the War Amputations of Canada, and the War Pensioners of Canada, Inc. These were the main veterans' organizations operating in the country at the time, and they now spoke with one powerful national voice. The need to improve Canada's system of veterans benefits, they argued, had been "clearly established" by Woods and his colleagues.

     

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Where Does the Buck Stop?

 

By Perry Gray, Editor-in-Chief VVi

 

It is a valid question to ask as two more Veterans have revealed that their private information was illegally accessed and shared by VAC and other federal agencies.  The government's response was to announce a 10-point action plan based on the Privacy Commissioner's recommendations.  Privacy Commissioner Jennifer Stoddart says an audit into how Veterans Affairs handles private information is coming in 2012.  But is this going to end the privacy scandal?

 

I do not think that it will.

 

Senior leaders have to stop ignoring the problem and avoiding a solution.  They must stop passing the buck. Prime Minister Harper should follow the example of US President Harry Truman. The sign "The Buck Stops Here" was on President Truman's desk in the White House.  Mr. Harper should have the same sign on his desk.

 

The saying "the buck stops here" derives from the slang expression "pass the buck" which means passing the responsibility on to someone else. The latter expression is said to have originated with the game of poker, in which a marker or counter, frequently in frontier days a knife with a buckhorn handle, was used to indicate the person whose turn it was to deal. If the player did not wish to deal he could pass the responsibility by passing the "buck," as the counter came to be called, to the next player.

 

On more than one occasion President Truman referred to the desk sign in public statements. For example, in an address at the National War College on December 19, 1952 Mr. Truman said, "You know, it's easy for the Monday morning quarterback to say what the coach should have done, after the game is over. But when the decision is up before you -- and on my desk I have a motto which says The Buck Stops Here' -- the decision has to be made." In his farewell address to the American people given in January 1953, President Truman referred to this concept very specifically in asserting that, "The President--whoever he is--has to decide. He can't pass the buck to anybody. No one else can do the deciding for him. That's his job.”

Mr Harper must heed those words and stop passing the buck.

For the third time, I am quoting Mr Harper because he continues to fail the Veterans Community:

"All too often we hear stories of veterans who are ignored or disrespected by government. What a shameful way to treat men and women who risked their lives to defend Canada. This shame will end with the election of a new government".

 

Mr Harper has had more than six years to demonstrate that he is responsible, but has failed.  He has instead proven repeatedly that he is anti-veteran.  He may disagree but his lack of action is a clear indication that he is not interested in redressing the shameful treatment of Canadian Veterans.

 

Mr Harper should have given clear instructions to his ministers and they must share the blame for not acting.  They knew there were systemic problems and did nothing.  Their names are added to the growing list of the guilty:

 

Greg Thompson, former MVA

Jean-Pierre Blackburn, former MVA

Steven Blaney, MVA

 

These ministers have procrastinated instead of being decisive.  They have at times blamed others including the members of the former Liberal government of Prime Minister Paul Martin.  Identifying scapegoats just demonstrates the pathetic state of federal political leadership and will.  Why did these people volunteer to be leaders if they were unwilling or worse incapable of making decisions?

 

They like the trappings of power and the prestige but are unable or incapable of being responsible and doing their job.

 

The lack of political leadership is mirrored in an absence of bureaucratic leaders in the senior management of VAC.  The deputy minister, Suzanne Tining, and her associate and assistant deputy ministers are guilty of mismanaging the department despite years of experience.  They cannot claim to be ignorant of Canadian laws or of what was happening within VAC. This is never a valid defence in a court of law or the court of public opinion.

 

It is not necessary to have copies of the documents accessed by Veterans such as Sylvain Chartrand, Dennis Manuge and Sean Bruyea to know that senior VAC officials are guilty.  It was the responsibility of Ms Tining and her subordinates to prevent privacy breaches.  That they failed to do so and allowed the illegal activities to continue should outrage all Canadians.

 

How can senior managers miss thousands of documents in which private information was shared and missing the one important word – Protected? Or that the Veterans did not give permission for their information to be used?

 

As Sean Bruyea has said, the rewards for breaking Canadian laws are greater than the punishments.  This begs the question why should any Canadian obey laws if the federal government does not? 

 

This is the slippery slope towards anarchy. 

 

Like Alexander the Great, Mr Harper could be very decisive and quickly solve the problem.  Alexander used a novel action to solve a complex problem when he cut the famous Gordian Knot with his sword. 

It is often used as a metaphor for an intractable problem solved by a bold stroke.  Unfortunately, Mr Harper seems reluctant to be bold or decisive in the face of a major problem.

 

Mr Harper has talked a lot about accountability and transparency.  These are expressed in many platitudes to appease Canadians.  They are but meaningless concepts uttered by leaders who deserve to be viewed as contemptible. 

 

Mr Harper, you need to do something.  Grow a backbone and make a decision, or resign as prime minister.

 

If you agree that the above-mentioned people are guilty, then communicate with them.  Their contact information is available from the federal government website:

 

http://www.canada.gc.ca/

 

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