SENATE PROPOSAL WOULD EXPOSE CIA SECRET ACCOUNTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP99-01448R000301310020-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 24, 2012
• Sequence Number: 20
• Publication Date: May 29, 1987
• Content Type: OPEN SOURCE

STAT
Declassified in Part - Sanitized Copy Approved for Release 2012/08/24: CIA-RDP99-01448R000301310020-9
4
WASHINGTON T11,7-S MAY 2 9 1987
Senate proposal
would espose CIA
secret accounts
TByei?Gertz C /.. -
wuMNO" tw$
The CIA may be forced by Con-
gress to Expose its financing of co-
vent action under a Senate proposal
that for the first time would give the
General Accounting Office author-
ity to review secret accounts.
The GAO proposal is only one of
several measures under consider-
ation in Congress that have raised
concerns among some intelligence
officials about a possible congres-
sional backlash against intelligence
activities growing out of the Iran-
Contra investigations.
The proposal is expected to be in-
troduced soon by Sen. John Glenn,
Ohio Democrat and chairman of the
Governmental Affairs Committee,
according to a Glenn spokesman.
f3 George Ca a former CIA offi-
ci a proposal"disastrous"
and said it would "tear up" a 40-year
agreement between the CIA and
Congress that prevents the GAO
from auditing secret intelligence op-
erations.
"It would pose unnecessary risks
for covert operations" Mr. Carver
said in an interview.
One White House official said
agency operatives fear the new leg-
islative proposals could signal the
beginning of greater restrictions on
covert action, such as those of the
late 1970s.
President Reagan, in a speech to Senate Intelligence Committee
CIA employees'Iliesday, referred to.? Chairman David L. Bore Okla-
t st period as a time when "Amen. h _
.~~~
r t,s
ly
cos intelligence capabilities (were]
reduced and demoralized:'
The House Intelligence Commit-
tee is exploring legislation that
would require the CIA to provide ad-
vance notification to Congress of all
covert operations.
Under current law, the adminis-
tration can withhold; congressional
notification of covert action on
limited national security grounds.
The presidential intelligence
"finding" that authorized the Iran
arms sales in January 1986 was the
first time a president required the
CIA not to inform Congress about a
covert operation. The notification
was withheld for a period of some 18
poses the GAO access plan since it
could hamper CIA covert actions.
The Intelligence Committee has
taken steps to tighten security on the
committee in an effort to allay CIA
concerns about leaks of classified
information, Mr. Boren said in an in-
terview. The panel also has begun
periodic policy reviews of an covert
action programs undertaken by the
CIA, he said.
"1 think that will head off any radi-
cal cures that are worse than the
disease" Mr Boren said.
Last month, the committee an-
nounced that it has created a staff
unit to conduct spot checks of
agency covert action programs. The
ntonts.
The House Ways and Means Cote- action -was supported by Deputy CIA
mittee is planning tax reform legis~'~j'Car National
lation that will give the Internal Rev-
enue Service some authority to
investigate CIA financial ar-
rangements with private contrac-
tors, according to intelligence
sources.
"That becomes a potential secu-
rity risk when you consider that an
agency that operates in secret may
be forced to reveal its contracts with
outsiders to IRS investigators" one
source said.
Mr. Carver said he believes the
GAO access bill is unnecessary be-
cause executive orders since 1947,
when the CIA was formed, have pro-
vided adequate provisions for mon-
itoring funds without vouchers that
are used in covert intelligence pro-
grAlins' t /1
"Such a unit would provide a
credible independent arm for com-
mittee review of covert action pro.
grams, and would have the added ad-
vantage of working at the exclusive
direction of the committee, which
would ensure the appropriate secu-
rity safeguards for these sensitive
activities," Mr. Gates wrote.
A spokesman for Sen. Glenn, how-
ever. said the intelligence panels
lack the GAO's resources for audit-
ing. The spokesman also said the
GAO has auditors with security
clearances who review Defense De-
partment and National Security
Agency programs.
Joan M. McCabe, GAO associate
director, said that since January the
GAO has received about a dozen re-
quests from members of Congress
to audit specific CIA covert action
accounts.
11Z
Declassified in Part - Sanitized Copy Approved for Release 2012/08/24: CIA-RDP99-01448R000301310020-9
 Declassified in Part - Sanitized Copy Approved for Release 2012/08/24: CIA-RDP99-01448R000301310020-9
The requests concerned covert
funds for Nicaraguan and Afghan
rebelsand other "miscellaneous" se-
cret program accounts, she said..
In terms of covert programs, the
agency has taken the position that
oversight is exercised through .the
Senate and House intelligence com-
mittees; Ms. McCabe said. " We have
had great difficulty In getting
access, and when we do get a re-
sponse, we tell the oversight commit-
tees and then arrangements (for an
audit) are made through the com-
mittee"
Ms. McCabe said the planned
Glenn legislation is the result of tes?
simony in February by GAO Comp-
troller General Charles A. Bowsher.
Mr. Bowsher, in testimony before Mr.
Glenn's committee, stated that if
Congress wanted the GAO to audit
covert action programs. "clarifying
legislation" was needed, she said.
"Technically, we believe we have
authority, but the practical aspect of
gaining access to covert action
accounts is a different thing," Ma.
McCabe said.
The Glenn spokesman said the
proposed bill would remove an ex?
emption granted to the CIA under a
1980 law that expanded the GAO's
authority to investigate federal
agencies.
Declassified in Part - Sanitized Copy Approved for Release 2012/08/24: CIA-RDP99-01448R000301310020-9 H