ACCESSION NUMBER:00000
FILE ID:96102306.LAR
DATE:10/23/96
TITLE:23-10-96  TEXT: JUSTICE IG STATEMENT ON CIA-contra DRUG ALLEGATIONS

TEXT:
(Before Senate Intelligence Committee)  (890)

WASHINGTON -- The inspector general of the Justice Department told a
Senate panel Oct. 23 that he has just begun an investigation into
whether Drug Enforcement Administration (DEA) agents knew about
alleged Central Intelligence Agency (CIA) involvement in drug money
support for the former Nicaraguan contra rebels.

Michael Bromwich told the Senate Intelligence Committee that it will
be some time before he can report to Congress. He was asked to
determine whether there exists evidence that the DEA, an arm of the
Justice Department, knew of any CIA routing of drug money to the
contras. His colleague, CIA Inspector General Frederick Hitz, is
simultaneously investigating whether any evidence exists to support
allegations that the CIA carried out such operations.

Following is the text of Bromwich's statement as prepared for
delivery:


Mr. Chairman and members of the Committee:

Thank you for inviting me to testify about my office's investigation
concerning allegations involving the Central Intelligence Agency's
suggested link to drug trafficking by supporters of the Nicaraguan
contras. My investigation will examine whether Department of Justice
personnel were aware of such information and, if so, what they did
about it. Because our investigation is just beginning, my testimony
will be limited to some extent. I would like to take this opportunity,
however, to describe for you the scope of our investigation and its
current status.

As the Committee is aware, these allegations were publicized in August
1996 through a series of articles in the San Jose Mercury News. The
articles focused on two convicted drug dealers, Oscar Blandon and
Norwin Meneses, who were alleged to have supported the Nicaraguan
contras through the sale of crack cocaine to "Freeway" Ricky Ross, a
well-known drug dealer who operated primarily in South Central Los
Angeles. While implying that the CIA was involved in the drug
trafficking in some manner, the articles also alleged that Department
of Justice employees, particularly DEA agents, may have been aware of
this CIA connection to drug trafficking. The allegations provoked an
angry response from the public, particularly the African-American
community in South Central Los Angeles. The Department and I have
received numerous letters from members of Congress as well as
California officials, Democrats and Republicans alike, requesting that
these allegations be fully investigated.

On September 20, 1996, I announced that the Office of Inspector
General would be conducting an investigation into these aspects of the
allegations that involve Department of Justice employees. For example,
we will be investigating DEA's use of Blandon and Meneses as
informers; whether the DEA failed to conduct appropriate drug
investigations because of a real or suspected CIA involvement; the
means whereby Blandon obtained from the INS his green card that
allowed him to remain in the United States even though he was
convicted of a felony; and the knowledge of DOJ employees of Blandon's
alleged CIA connections.

Although I do not have jurisdiction to investigate the conduct of CIA
employees, our investigation will necessarily involve coordination
with the CIA Inspector General's inquiry, which will examine the CIA's
alleged involvement in drug trafficking. I have met with CIA Inspector
General Fred Hitz, and we have agreed to coordinate with each other
when the investigations overlap and to share documents that are
relevant to each inquiry. Our investigative staffs will be meeting on
a regular basis to coordinate this process.

Our investigation is fully underway. The investigative team currently
consists of three attorneys as well as additional investigators both
here and on the West Coast. We have transmitted document requests to
all Department of Justice agencies, and we have begun receiving
responses to that request. The responses to our document requests have
already produced a substantial quantity of documents from various
Department components.

To our knowledge, allegations concerning whether the Department had
any information suggesting a CIA link to contra drug traffickers have
not been previously examined in a comprehensive fashion by the
Department of Justice. Through our ongoing document requests and our
planned interviews of witnesses, we will determine what work has been
done by Department personnel that is relevant to our inquiry. It would
be premature to detail the documents that we have received that are
related to these matters.

While I cannot discuss in detail the investigative steps that we
intend to take, I can assure you that our investigation will be
complete and thorough. The Office of Inspector General has
successfully completed similar large-scale investigations. As examples
of the type of work undertaken by my office, I would point to our
recently completed report on the deception of members of a
Congressional Task Force by officials in the INS' Miami District; our
report on allegations of racist conduct by federal employees at the
Good ol' Boy Roundup; and the classified reports of our investigations
into the Justice Department's response to the murder of four Marines
in the Zona Rosa district of El Salvador and to certain violent crimes
committed against U.S. nationals in Guatemala. These reports typify
the thorough investigations and reporting that the Office of Inspector
General conducts. You can be assured that the investigation into these
serious allegations will be no less thorough and no less independent
than our previous work.
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