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Authorities investigating massive security breach at Global Affairs Canada

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Canadian authorities are investigating a prolonged data security breach following the “detection of malicious cyber activity” affecting the internal network used by Global Affairs Canada staff, according to internal department emails viewed by CBC News.

The breach affects at least two internal drives, as well as emails, calendars and contacts of many staff members.

CBC News spoke to multiple sources with knowledge of the situation, including employees who have received instructions on how the breach affects their ability to work. Some were told to stop working remotely as of last Wednesday.

CBC News has also seen three internal emails sent to Global Affairs staff.

“Forensic work has also progressed to help us understand the scope of the data breach,” one email said. “The work is ongoing, but early results suggest that many (Global Affairs Canada) users may have been affected.”

Another email said the internal systems were vulnerable between December 20, 2023 and January 24, 2024. It informed anyone who connected remotely using a SIGNET (Secure Integrated Global Network) laptop that their information may be vulnerable.

The “compromised” system was the virtual private network (VPN) staff use to access Global Affairs’s Ottawa headquarters. The VPN system was managed by Shared Services Canada, the GAC notice said.

Shared Services Canada is a federal department created in 2011 to take over the delivery of email, data centres and network services for many government departments and agencies.

No word yet on scope of data breach

According to Global Affairs, SIGNET is the department’s secure computer network. One part of the network holds personal information on shared drives, including employees’ personal information. Another part holds classified information.

It’s not clear whether secret information was lost in the breach, which lasted longer than a month. It’s also not clear who was behind the breach.

Email traffic and files on personal shared drives “may have been compromised,” a GAC memo to staff said. GAC also said it’s looking into whether “sensitive corporate information,” such as credit cards and banking data, may have been breached.

Shared Services Canada and the Canadian Centre for Cyber Security — which is part of the Communications Security Establishment, Canada’s cyber-security organization — are investigating the breach, GAC’s email to staff said.

“Forensic work, including with these partners, is ongoing to help us understand the impact on our networks and any potential changes in the scope and in the time frame of the data breach,” the GAC email to staff read.

A multi-storey building with windows is pictured from the outside.
The Lester B. Pearson Building on Sussex Drive in Ottawa, headquarters of Global Affairs Canada. (CBC)

The office of the Privacy Commissioner said Global Affairs Canada informed it of a data breach on Jan. 26.

“We are in ongoing communication with the department to gather more information,” a spokesman said in a media statement. “Following a breach notification, our office will work with federal institutions to better understand privacy risks related to the breach and ensure that the department undertakes appropriate steps, including notification of affected individuals.”

Shared Services Canada referred CBC’s request for comment to Global Affairs Canada. Global Affairs did not immediately respond to a request for comment.

Global Affairs is a ‘natural target’

“A breach of that duration is bound to be serious,” said Wesley Wark, a national security expert at the University of Ottawa.

“Global Affairs Canada holds a lot of classified and sensitive information … It is a natural target for hacking but it’s also vulnerable and holds important data.”

Although sensitive diplomatic cables are sent using an encrypted system, a source told CBC News that some drafts of sensitive correspondence and some intelligence may have been stored in the affected drives.

“We know this information may be unsettling for many of you,” said the email sent to staff. “This is an evolving situation and further information and guidance will continue to be shared as quickly as possible.”

The email offers suggestions on how to safeguard “sensitive information” and encourages employees to monitor financial accounts in case of unauthorized activity.

In the interim, some Canada-based Global Affairs employees with security clearance are not able to work from home.

“This is not a permanent change to the hybrid work model, just a temporary situation until this crisis passes,”  the email said.

A senior diplomatic source told CBC News that on several occasions in the past year, staff were told to immediately change passwords or reboot software but were not given any further details.

 

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Federal money and sales taxes help pump up New Brunswick budget surplus

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FREDERICTON – New Brunswick’s finance minister says the province recorded a surplus of $500.8 million for the fiscal year that ended in March.

Ernie Steeves says the amount — more than 10 times higher than the province’s original $40.3-million budget projection for the 2023-24 fiscal year — was largely the result of a strong economy and population growth.

The report of a big surplus comes as the province prepares for an election campaign, which will officially start on Thursday and end with a vote on Oct. 21.

Steeves says growth of the surplus was fed by revenue from the Harmonized Sales Tax and federal money, especially for health-care funding.

Progressive Conservative Premier Blaine Higgs has promised to reduce the HST by two percentage points to 13 per cent if the party is elected to govern next month.

Meanwhile, the province’s net debt, according to the audited consolidated financial statements, has dropped from $12.3 billion in 2022-23 to $11.8 billion in the most recent fiscal year.

Liberal critic René Legacy says having a stronger balance sheet does not eliminate issues in health care, housing and education.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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Rent cap loophole? Halifax-area landlords defend use of fixed-term leases

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HALIFAX – Some Halifax-area landlords say fixed-term leases allow property owners to recoup operating costs they otherwise can’t under Nova Scotia’s rent cap.

Their comments to a legislative committee today are in reaction to plans by the government to extend the five per cent cap on rental increases to the end of 2027.

But opposition parties and housing activists say the bill’s failure to address fixed-term leases has created a loophole that allows large corporate landlords to boost rents past five per cent for new tenants.

But smaller landlords told a committee today that they too benefit from fixed-term leases, which they said help them from losing money on their investment.

Jenna Ross, of Halifax-based Happy Place Property Management, says her company started implementing those types of leases “because of the rent cap.”

Landlord Yarviv Gadish called the use of fixed-term leases “absolutely essential” in order to keep his apartments presentable and to get a return on his investment.

Unlike a periodic lease, a fixed-term lease does not automatically renew beyond its set end date. The provincial rent cap covers periodic leases and situations in which a landlord signs a new fixed-term lease with the same tenant.

However, there is no rule preventing a landlord from raising the rent as much as they want after the term of a fixed lease expires — as long as they lease to someone new.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.



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Former military leader Haydn Edmundson found not guilty of sexual assault

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OTTAWA – Former vice-admiral Haydn Edmundson has been found not guilty of sexual assault and committing an indecent act, concluding a trial that began in February.

Edmundson was head of the military’s personnel in 2021 when he was accused of assaulting another member of the navy during a 1991 deployment.

The complainant, Stephanie Viau, testified during the trial that she was 19 years old and in the navy’s lowest rank at the time of the alleged assault, while Edmundson was an older officer.

Edmundson pleaded not guilty and testified that he never had sexual contact with Viau.

In court on Monday, a small group of his supporters gasped when the verdict was read, and Edmundson shook his lawyer’s hand.

Outside court, lawyer Brian Greenspan said his client was gratified by the “clear, decisive vindication of his steadfast position that he was not guilty of these false accusations.”

Justice Matthew Webber read his entire decision to the court Monday, concluding that the Crown did not meet the standard of proving its case beyond a reasonable doubt.

He cited concerns with the complainant’s memory of what happened more than 30 years ago, and a lack of evidence to corroborate her account.

“There are just too many problems, and I’m not in the business of … declaring what happened. That’s not my job, you know, my job is to just decide whether or not guilt has been proven to the requisite standard, and it hasn’t,” Webber said.

During the trial, Viau testified that one of her responsibilities on board the ship was to wake officers for night watch and other overnight duties, and that she woke Edmundson regularly during that 1991 deployment.

The court has heard conflicting evidence about the wake-up calls.

Viau estimated that she woke Edmundson every second or third night, and she told the court that his behaviour became progressively worse during the deployment.

She testified that he started sleeping naked and that one night she found him completely exposed on top of the sheets.

Viau said she “went berserk,” yelling at him and turning on the lights to wake the other officer sleeping in the top bunk.

That incident was the basis for the indecent act charge.

Webber said he did not believe that Viau could have caused such a disruption on board a navy ship at night without notice from others.

“I conclude that (Viau’s) overall evidence on the allegation that Mr. Edmundson did progressively expose himself to her as being far too compromised to approach proof of those allegations that she has made,” he said in his decision.

Viau alleged that the sexual assault happened a couple of days after her yelling at Edmundson.

She testified at trial that he stopped her in the corridor and called her into his sleeping quarters to talk. Viau said Edmundson kept her from leaving the room, and he sexually assaulted her.

When Edmundson took the stand in his own defence he denied having physical or sexual contact with Viau.

During his testimony, Edmundson also said Viau did not wake him regularly during that deployment because his role as the ship’s navigator kept him on mostly day shifts.

Defence lawyer Brian Greenspan took aim at the Crown’s corroborating witness during cross-examination. The woman, whose name is protected by a court-ordered publication ban, was a friend of Viau’s on the ship.

She testified that she remembered the evening of the assault because she and Viau had been getting ready for a night out during a port visit, and she misplaced her reading glasses. She said Viau offered to go fetch them from another part of the ship but never came back, and that she went looking for her friend.

On cross-examination, the woman explained that she had told all of this to a CBC reporter in early 2021.

Greenspan produced a transcript of that interview that he said suggests the reporter told her key details of Viau’s story before asking her any questions.

Greenspan argued the reporter provided information to the witness and she wouldn’t have been able to corroborate the story otherwise.

In his decision, Webber said the woman’s evidence “cannot be relied upon in any respect to corroborate that evidence of the complainant, because it’s it’s clearly a tainted recollection, doesn’t represent a real memory.”

Edmundson was one of several senior military leaders accused of sexual misconduct in early 2021.

He stepped down from his position as head of military personnel after the accusation against him was made public in 2021. The charges were laid months later, in December 2021.

Edmundson testified that in February 2022, he was directed by the chief of the defence staff to retire from the Armed Forces.

The crisis led to an external review by former Supreme Court justice Louise Arbour in May 2022, whose report called for sweeping changes to reform the toxic culture of the Armed Forces.

The military’s new defence chief, Gen. Jennie Carignan, was promoted to the newly created role of chief of professional conduct and culture in an effort to enact the reforms in the Arbour report.

Outside court, Edmundson declined to comment on whether he was considering legal action against the government or the military.

This report by The Canadian Press was first published Sept. 16, 2024.



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