Oliver North - Iran–Contra Affair

Iran–Contra Affair

North came into the public spotlight as a result of his participation in the Iran–Contra affair, a political scandal of the late 1980s, in which he claimed partial responsibility for the sale of weapons via intermediaries to Iran, with the profits being channeled to the Contras in Nicaragua. He was reportedly responsible for the establishment of a covert network, which aided the Contras. The Boland Amendment (to the House Appropriations Bill of 1982 and subsequent years) prohibited the appropriation of U.S. funds by intelligence agencies for this purpose at that time, thus the search for alternative funding sources. Funding was facilitated by funneling money from his shell organization, the "National Endowment for the Preservation of Liberty," through Palmer National Bank of Washington, D.C. to the Contras.

According to the National Security Archive, in an August 23, 1986 e-mail to National Security Advisor John Poindexter, Oliver North described a meeting with a representative of Panamanian Dictator Manuel Noriega: "You will recall that over the years Manuel Noriega in Panama and I have developed a fairly good relationship," North writes before explaining Noriega's proposal. If U.S. officials can "help clean up his image" and lift the ban on arms sales to the Panamanian Defense Force, Noriega will "'take care of' the Sandinista leadership for us."

North told Poindexter that Noriega could assist with sabotage against the Sandinistas and supposedly suggested that Noriega be paid one million dollars in cash, from "Project Democracy" funds raised from the sale of U.S. arms to Iran—for the Panamanian leader's help in destroying Nicaraguan economic installations.

In November 1986, as the sale of weapons was made public, North was dismissed by President Ronald Reagan, and, in July 1987, he was summoned to testify before televised hearings of a joint Congressional committee that was formed to investigate Iran–Contra. The image of North taking the oath became iconic, and similar photographs made the cover of Time and Newsweek, and helped to define him in the eyes of the public. During the hearings, North admitted that he had lied to Congress, for which, among other things, he was later charged. He defended his actions by stating that he believed in the goal of aiding the Contras, whom he saw as freedom fighters, and said that he viewed the Iran–Contra scheme as a "neat idea". North admitted shredding government documents related to his Contra and Iranian activities, at William Casey's suggestion, when the Iran–Contra scandal became public. He testified that Robert McFarlane had asked him to alter official records to delete references to direct assistance to the Contras and that he had helped.

North was tried in 1988 in relation to his activities while at the National Security Council. He was indicted on sixteen felony counts, and, on May 4, 1989, he was initially convicted of three: accepting an illegal gratuity; aiding and abetting in the obstruction of a congressional inquiry; and ordering the destruction of documents via his secretary, Fawn Hall. He was sentenced, by U.S. District Judge Gerhard A. Gesell on July 5, 1989, to a three-year suspended prison term, two years' probation, $150,000 in fines, and 1,200 hours community service.

However, on July 20, 1990, with the help of the American Civil Liberties Union (ACLU), North's convictions were vacated, after the appeals court found that witnesses in his trial might have been impermissibly affected by his immunized congressional testimony.

Because North had been granted limited immunity for his Congressional testimony, the law prohibited the independent counsel (or any prosecutor) from using that testimony as part of a criminal case against him. To prepare for the expected defense challenge that North's testimony had been used, the prosecution team had—before North's congressional testimony had been given—listed and isolated all of its evidence. Further, the individual members of the prosecution team had isolated themselves from news reports and discussion of North's testimony. While the defense could show no specific instance in which North's congressional testimony was used in his trial, the Court of Appeals ruled that the trial judge had made an insufficient examination of the issue. Consequently, North's convictions were reversed. The Supreme Court declined to review the case. After further hearings on the immunity issue, Judge Gesell dismissed all charges against North on September 16, 1991, on the motion of the independent counsel. Allegations were made, most notably by the Kerry Subcomitee, that North and other senior officials created a privatized Contra network that attracted drug traffickers looking for cover for their operations, then turned a blind eye to repeated reports of drug smuggling related to the Contras, and actively worked with known drug smugglers such as Panamanian dictator Manuel Noriega to assist the Contras. Most Contra associates found guilty of trafficking by the Kerry Committee were involved in the supply chain (ostensibly for "humanitarian goods," though the supply chain was later found to have serviced the transport of arms), which had been set up by North. Organizations and individuals involved in the supply chain under investigation for trafficking included the company SETCO (operated by large-scale trafficker Juan Matta-Ballesteros), the fruit company Frigorificos de Puntarenas, rancher John Hull, and several Cuban Exiles; North and other US government officials were criticized by the Kerry Report for their practice of "ticket punching" for these parties, whereby people under active investigation for drug trafficking were given cover and pay by joining in the Contra supply chain. In addition to the Kerry Committee's investigation, the Costa Rican government of Nobel-Prize winner Óscar Arias conducted an investigation of Contra-related drug trafficking, and as a result of this investigation, North and several other US Government officials were permanently banned from entering Costa Rica. North has consistently denied any involvement with drug trafficking, stating on Fox's Hannity and Colmes, "...nobody in the government of the United States, going all the way back to the earliest days of this under Jimmy Carter, ever had anything to do with running drugs to support the Nicaraguan resistance."