How to package a new VA Secretary?

PACKAGING PEAKE -- How a former Army Surgeon General with

ties to the Walter Reed scandal and one-time executive with a

company raking in VA contracts worth hundreds of millions

of dollars was sold to Congress and vets as a good guy

who can save the Department of Veterans' Affairs.







Story below:

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Packaging Peake

How a former Army Surgeon General with ties to the Walter Reed scandal and one-time executive with a company raking in VA contracts worth hundreds of millions of dollars was sold to Congress and vets as a good guy who can save the Department of Veterans’ Affairs.



commentary by Larry Scott



It went like this:

Jim Nicholson, Secretary of the Department of Veterans’ Affairs (VA), announces his resignation. It’s July of 2007. Nicholson says he will leave the VA no later than October 1. A collective sigh of relief can be heard all over Capitol Hill. The press won’t have the bumbling Nicholson to kick around any more. But, who will be the new VA Secretary? Who could be passed-off as a savior of the VA working to make all the nagging problems go away?

Many thought the miter would pass to Deputy Secretary Gordon Mansfield. But, on October 1, when Mansfield automatically became Acting Secretary, we knew that was not to be. Why not Mansfield? Many insiders feel Mansfield is too “veteran-friendly” because of his years of service at the Paralyzed Veterans of America.

So, who, then? Who would meet all the requirements of staunch political ally (sometimes called a hack) and a yes-man, but could be packaged to appear to be a benign benefactor? Let’s see…we’ll need a veteran, decorated, of course. And, of high rank…none of this enlisted stuff. Three stars? That's enough. Hey…how about a doctor? We’ve never done that before. Just make sure he still has his license and didn’t have anything to do with those experiments at Edgewood Arsenal. And, to round it out, a business executive who knows how to make hundreds of millions of dollars from VA contracts but can plausibly deny any wrongdoing.

On October 30, LIVE from the Roosevelt Room at the White House, we got our man. Dr. James Peake. Decorated veteran. Three-star general. Physician. Highly-paid executive with QTC Management, Inc., a company that makes hundreds of millions of dollars giving C&P exams to veterans. (Peake has since resigned from QTC to avoid the appearance of “conflict.”)

The packaging had begun. The lighting was perfect. The camera work brilliant. The president smooth and deliberate in his praise. He described Peake as an “end of a chow line officer,” who “devoted his career as an Army doctor to improving care for our wounded servicemen and women.” The president’s remarks went on and on…building a package of perfection around Dr. Peake.

The next layer of packaging came from the veterans’ service organizations (VSOs). The American Legion’s national commander said, “I’m pleased with Pres. (George W.) Bush’s nominee to lead the Department of Veterans Affairs.” From the VFW: “…he certainly has the prerequisite credentials and organizational skills to lead the second largest federal department.” And, the DAV caved-in and assumed that Peake would be confirmed: “The DAV stands ready to assist the new Secretary in any way possible to help fulfill our nation’s sacred obligation to veterans.” Now, the veterans’ community was primed to accept Peake as VA Secretary, although few stopped to realize that the VSOs would give the nod to any nominee who didn’t have a Dishonorable Discharge.

The next step in the packaging came in the disclosure statements Peake sent to the Senate Committee on Veterans’ Affairs in answer to their questions. Peake said even though he was Surgeon General of the Army from 2000-2004, he had no “direct” knowledge of the problems at Walter Reed hospital. How about “indirect?” Did anybody ask that? No. Peake also said he will terminate any connection with QTC. Does that mean he will have no contact at all with the chairman of QTC, former VA Secretary Anthony Principi? Probably not. “Hey, Tony, just called to chat about the budget.” Not likely. And, Peake promised to keep an open mind on mandatory funding for VA healthcare, something none of his predecessors, or the White House, has done.

Now, the packaging is almost complete. We are just a few days away from the December 5, 2007 confirmation hearing before the Senate Committee on Veterans’ Affairs and Peake has said all the right things. Will the Committee buy it? Will they become true believers? Before the hearing even begins, we find out that the packaging has worked. In a news story the day before the hearing, Committee Chair Sen. Daniel Akaka (D-HI) indicated that he would like to see Peake approved by the full Senate later in the month, indicating that it is a done deal. Sen. Patty Murray (D-WA) said she plans tough questions but expects him to be confirmed.

Then, the day of the hearing, we realize that the packaging is complete when Peake sits down at the witness table flanked by Sen. Daniel Inouye (D-HI), a World War II hero and recipient of the Medal of Honor and former Sen. Bob Dole, another World War II hero.

The message comes through loud and clear, not as an endorsement from two respected warriors but as a threat to the Committee: “This is our boy you see surrounded and protected by these courageous World War II heroes. No hard questions, or there will be political consequences.” The appearance of Inouye and Dole made Peake bullet-proof. The message was received. Sen. Larry Craig (R-ID) called Peake “our new Secretary.” Sen. Arlen Specter (R-PA) said to Peake, “Thank you for taking this job.” The blatantly-political move of shielding Peake with war heroes had worked.

DISAPPOINTMENT: Sen. Akaka indicating Peake would be confirmed before the hearing was even held.

BIGGER DISAPPOINTMENT: Sen. Barack Obama (D-IL) not showing up for the hearing. Obama’s loudly proclaimed pro-veteran stance must have been forgotten for the day. Or, maybe, he was out with Oprah.

BIGGEST DISAPPOINTMENT: Sen. Patty Murray rolling over, playing dead, scrupulously avoiding the tough question, and finally saying, "I am likely to confirm your nomination..."

Now we know for sure that it’s not who you are or what you do, but how well you are packaged. We never heard in-depth questioning about the Walter Reed scandal. And, Peake was there in the chain of command. We never heard reasonable answers about QTC and how they grabbed huge VA contracts. And, we never even heard a whisper of the allegation that Peake may have provided mental health professionals to aid interrogators at Guantanamo.

But, we sure have a pretty package. A nice ornament to hang on the tree, if you will.

Dr. James Peake WILL be confirmed as VA Secretary. His nomination should move out of Committee to the full Senate before the Christmas recess.

Then, veterans get to hold their breath and hope that this political hack is just a little bit better, a little smarter, a little more caring than the previous political hacks.

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Larry Scott --



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