A number of writers have alleged that the United States Central Intelligence Agency (CIA) was involved in cocaine trafficking during the 1980s. These claims have led to investigations by the United States government, including hearings and reports by the United States House of Representatives, Senate, Department of Justice, and the CIA's Office of the Inspector General. The subject remains controversial.
CIA involvement in trafficking is usually alleged to be connected to the Contra war in Nicaragua during the Reagan Administration, which acknowledged in 1986 that funds from cocaine smuggling had helped fund the Contra rebels, but stated that the smuggling was not authorized by the US government or resistance leaders.
A 1986 investigation by a sub-committee of the Senate Foreign Relations Committee (the Kerry Committee), found that "the Contra drug links included[,]" amongst other connections, " .... Payments to drug traffickers by the U.S. State Department of funds authorized by the Congress for humanitarian assistance to the Contras, in some cases after the traffickers had been indicted by federal law enforcement agencies on drug charges, in others while traffickers were under active investigation by these same agencies."
The charges of CIA involvement in Contra cocaine trafficking were revived in 1996, when a newspaper series by reporter Gary Webb in the San Jose Mercury News claimed that the trafficking had played an important role in the creation of the crack cocaine drug problem in the United States. Webb's series led to three federal investigations, none of which found evidence of any conspiracy by the CIA or its employees to bring drugs into the United States.
"Once you set up a covert operation to supply arms and money, it's very difficult to separate it from the kind of people who are involved in other forms of trade, and especially drugs. There is a limited number of planes, pilots and landing strips. By developing a system for supply of the Contras, the US built a road for drug supply into the US."
In 1984, U.S. officials began receiving reports of Contra cocaine trafficking. Three officials told journalists that they considered these reports "reliable." Former Panamanian deputy health minister Dr. Hugo Spadafora, who had fought with the Contra army, outlined charges of cocaine trafficking to a prominent Panamanian official and was later found murdered. The charges linked the Contra trafficking to Sebastián González Mendiola, who was charged with cocaine trafficking on November 26, 1984, in Costa Rica.