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Title: CIA hit by scandal within a scandal
Source: New Zealand Herald
URL Source: http://www.nzherald.co.nz/section/story.cfm?c_id=2&ObjectID=10381639
Published: May 12, 2006
Author: Rupert Cornwell
Post Date: 2006-05-12 21:00:14 by A K A Stone
Keywords: None
Views: 78

WASHINGTON - It is the scandal within the CIA scandal - a lurid tale of poker parties, booze and prostitutes involving Congressmen, dodgy businessmen and senior officials from America's disaster-prone spy agency.

The imbroglio came to light with the sacking of Porter Goss after a disastrous 18 month spell as CIA director.

It now threatens yet more turmoil at the agency, as the Senate embarks on what are sure to be torrid confirmation hearings next week for Gen. Michael Hayden, Mr Goss's designated successor.

Federal agents today searched the home and office of the CIA's former third-highest ranking official who is under investigation over his ties with a figure in a congressional bribery scandal.

Kyle "Dusty" Foggo, the CIA's former executive director, faces at least four federal probes over his long-standing friendship with defence contractor Brent Wilkes, an unindicted co-conspirator in the bribery case that landed former US representative Randy "Duke" Cunningham in jail, officials said.

Foggo, who announced his retirement from the CIA on Monday, had been appointed by CIA Director Porter Goss, who himself resigned a week ago.

All stems from the continuing federal corruption probe into the affair of the disgraced former San Diego Congressman Cunningham, a one time Vietnam war Navy fighter ace who now serving a lengthy jail term for taking $2.4m of bribes.

Among those who bestowed favours on Cunningham was a defence contractor named Brent Wilkes, identified by the FBI as a 'co-conspirator No. 1 in the case (though has not been charged with any crime).

Mr Wilkes also happens to be best friends since their high school days with Kyle 'Dusty' Foggo, until this month the CIA's executive director, its third ranking official..

The FBI is now investigating whether Mr Foggo - as did Mr Cunningham through his Pentagon contacts - helped push CIA business Mr Wilkes' way.

That remains unclear, and 'Dusty' Foggo has denied any impropriety.

He has admitted however that in the 1990s he used to attend poker parties in a private suite at the Watergate hotel thrown by his old school buddy, attended by CIA men and Congressmen, among them Cunningham.

They seem to have been festive occasions where the beer and whisky flowed freely.

Now the FBI is probing whether Mr Wilkes, in his bid to secure more contracts, had limousines ferry in prostitutes for the extra entertainment of his guests.

Charlie Wilson, a colourful former Texas Congressman who persuaded the CIA to back the Afghan rebels against the Soviet union in the 1980s, went to two of the parties but says he never saw a call-girl.

"The only thing out of order was cigar smoking on a non-smoking floor," he said.

Mr Wilkes' lawyer also denied the allegation: "There was no such conduct, it did not happen."

His recollection however does not quite square with that of Mitchell Wade, another defence contractor, who pleaded guilty in February to bribing Cunningham.

Mr Wade told prosecutors that he sometimes laid on a prostitute for the then-congressman.

According to the Wall Street Journal, the FBI has interviewed women working at Washington area escort agencies as part of its investigation.

Mr Foggo meanwhile was forced to resign from the CIA a few days before his boss was fired.

More than understandably, Mr Goss was worried that the allegations of poker games and prostitution tales would be a "distraction" that could further damage the reputation of the CIA.

Though Mr Foggo was an especially close friend of Mr Wilkes, he was far from alone among the latter's contacts at the agency.

Another was Brant Bassett, a retired CIA officer nicknamed 'Nine Fingers', whom Wilkes paid $5,000 for his help on a business deal in Germany.

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