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(The Intelligence Daily) -- While America's attention has shifted to the economic meltdown and the presidential race between corporate favorites John McCain and Barack Obama, The Wall Street Journal reported Wednesday that the Department of Homeland Security's (DHS) National Applications Office (NAO) "will proceed with the first phase of a controversial satellite-surveillance program, even though an independent review found the department hasn't yet ensured the program will comply with privacy laws."
A new 60-page Government Accountability Office report said the department "lacks assurance that NAO operations will comply with applicable laws and privacy and civil liberties standards," according to a person familiar with the document. The report, which is unclassified but considered sensitive, hasn't been publicly released, but was described and quoted by several people who have read it.