The shadow rightwing intelligence network that lied us into war

Julian Borger - UK Guardian -- As the CIA director, George Tenet, arrived at the Senate yesterday to give secret testimony on the Niger uranium affair, it was becoming increasingly clear in Washington that the scandal was only a small, well-documented symptom of a complete breakdown in US intelligence that helped steer America into war.

It represents the Bush administration's second catastrophic intelligence failure. But the CIA and FBI's inability to prevent the September 11 attacks was largely due to internal institutional weaknesses.

This time the implications are far more damaging for the White House, which stands accused of politicising and contaminating its own source of intelligence.

According to former Bush officials, all defence and intelligence sources, senior administration figures created a shadow agency of Pentagon analysts staffed mainly by ideological amateurs to compete with the CIA and its military counterpart, the Defence Intelligence Agency.

The agency, called the Office of Special Plans (OSP), was set up by the defence secretary, Donald Rumsfeld, to second-guess CIA information and operated under the patronage of hardline conservatives in the top rungs of the administration, the Pentagon and at the White House, including Vice-President Dick Cheney.

The ideologically driven network functioned like a shadow government, much of it off the official payroll and beyond congressional oversight. But it proved powerful enough to prevail in a struggle with the State Department and the CIA by establishing a justification for war.

There was a mountain of documentation to look through and not much time. The administration wanted to use the momentum gained in Afghanistan to deal with Iraq once and for all. The OSP itself had less than 10 full-time staff, so to help deal with the load, the office hired scores of temporary "consultants". They included lawyers, congressional staffers, and policy wonks from the numerous rightwing thinktanks in Washington. Few had experience in intelligence.

"Most of the people they had in that office were off the books, on personal services contracts. At one time, there were over 100 of them," said an intelligence source. The contracts allow a department to hire individuals, without specifying a job description.

As John Pike, a defence analyst at the thinktank GlobalSecurity.org, put it, the contracts "are basically a way they could pack the room with their little friends".

"They surveyed data and picked out what they liked," said Gregory Thielmann, a senior official in the state department's intelligence bureau until his retirement in September. "The whole thing was bizarre. The secretary of defence had this huge defence intelligence agency, and he went around it."

Democratic congressman David Obey, who is investigating the OSP, said: "That office was charged with collecting, vetting and disseminating intelligence completely outside of the normal intelligence apparatus. In fact, it appears that information collected by this office was in some instances not even shared with established intelligence agencies and in numerous instances was passed on to the national security council and the president without having been vetted with anyone other than political appointees."

The OSP was an open and largely unfiltered conduit to the White House not only for the Iraqi opposition. It also forged close ties to a parallel, ad hoc intelligence operation inside Ariel Sharon's office in Israel specifically to bypass Mossad and provide the Bush administration with more alarmist reports on Saddam's Iraq than Mossad was prepared to authorise.

The exchange of information continued a long-standing relationship Mr Feith and other Washington neo-conservatives had with Israel's Likud party.

In 1996, he and Richard Perle - now an influential Pentagon figure - served as advisers to the then Likud leader, Binyamin Netanyahu. In a policy paper they wrote, entitled A Clean Break: A New Strategy for Securing the Realm, the two advisers said that Saddam would have to be destroyed, and Syria, Lebanon, Saudi Arabia, and Iran would have to be overthrown or destabilised, for Israel to be truly safe.

The Israeli influence was revealed most clearly by a story floated by unnamed senior US officials in the American press, suggesting the reason that no banned weapons had been found in Iraq was that they had been smuggled into Syria. Intelligence sources say that the story came from the office of the Israeli prime minister.

The OSP absorbed this heady brew of raw intelligence, rumour and plain disinformation and made it a "product", a prodigious stream of reports with a guaranteed readership in the White House. The primary customers were Mr Cheney, Mr Libby and their closest ideological ally on the national security council, Stephen Hadley, Condoleezza Rice's deputy.

In turn, they leaked some of the claims to the press, and used others as a stick with which to beat the CIA and the state department analysts, demanding they investigate the OSP leads.