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Yes, it's discussing the IC IG's standards for "credible". Obviously they could substantiate the assertions.
Yes, he does.
"In the process of reviewing and clarifying those forms, and in response to recent press inquiries regarding the instant whistleblower complaint, the ICIG understood that certain language in those forms and, more specifically, the informational materials accompanying the forms, could be read – incorrectly – as suggesting that whistleblowers must possess first-hand information in order to file an urgent concern complaint with the congressional intelligence committees."
"Since Inspector General Atkinson entered on duty as the Inspector General of the Intelligence Community, the ICIG has not rejected the filing of an alleged urgent concern due to a whistleblower’s lack of first-hand knowledge of the allegations"
Where in the text that you quoted does the ICIG deny that the agency's policy was to require first-hand information? As I stated previously, the ICIG has taken the position—incorrectly—that the law forbids requiring first-hand information. He avoids attacking the prior policy directly, but it was unambiguous: the IG "will not be able to process the complaint" if is based on "nothing more than second-hand and unsubstantiated assertions."
There's no first hand information referred to in the non-redacted portion of the letter, the second hand information has been substantiated. The memorandum has been released.
On the contrary, the second-hand information has not been substantiated, and at most reflects a biased value-judgement about what the President should be doing (i.e., "differences of opinions concerning public policy matters"). It doesn't seem to bother you that this is categorically beyond the scope of intelligence whistleblower protections, notwithstanding the fact that POTUS is not an intelligence official.
It's completely workable. If the second hand information can be substantiated through first hand witnesses and documented evidence, then it meets the requirements for being "credible". Which is what happened.
....and here we are.
The exact opposite happened. Half the country can plainly see how the whistleblower system can be abused for political purposes, and the other half of the country is happy because the whistleblower system was abused for political purposes. Privileged information got leaked to people who have no business knowing it. Literally any idiot employed in one of the 17 federal intelligence agencies (thousands of people) can make an outrageous accusation against the President based entirely on hearsay.
Just take that as a prediction. At some point very soon, the "second-hand information" policy will be terminated. The DNI can do it, or Trump can accomplish it via executive order. The only people who want it are Democrats, and only for the duration of Trump's presidency.