Dr. Michael E. Salla’s Investigation into the CIA’s Black Budget

The Black Budget Report: An Investigation into the CIA’s ‘Black Budget’ and the Second Manhattan Project. An in-depth look into the secrets of CIA finances.

secret cia black budget

This report examines the existence of a CIA ‘black budget’ and an extensive network of ‘deep black projects’ that it funds. The report identifies the legal framework established by the US Congress for the creation of a CIA ‘black budget’ from the appropriations earmarked for other federal agencies that are siphoned through the CIA as the sole conduit of black budget funds. The report investigates the legal challenges to the constitutionality of the CIA’s black budget; how the CIA uses its legal authority to extract appropriations from government agencies such as HUD; how the CIA launders non-appropriated money through other federal agencies; and the efforts the CIA goes to prevent these financial transfers from being exposed. Using as a case study the legal difficulties faced by an innovative mortgage finance company, Hamilton Securities, the report will argue that the CIA’s covert role in Hamilton’s demise is compelling evidence that the CIA was involved in funding irregularities in HUD. It will be finally argued that the size of black budget, the secrecy surrounding it, the extent senior officials in Federal agencies go to targeting individuals and companies that threaten to reveal where congressional appropriations are ultimately going, suggest a vast number of ‘deep black projects’ that collectively form a highly classified second Manhattan Project whose existence, goals and budget are kept secret.

About the Author

Dr. Michael E. Salla has held academic appointments in the School of International Service, American University, Washington DC (1996-2001), and the Department of Political Science, Australian National University, Canberra, Australia (1994-96). He taught as an adjunct faculty member at George Washington University, Washington DC., in 2002. He is currently researching methods of Transformational Peace as a ‘Researcher in Residence’ at the Center for Global Peace/School of International Service, American University (2001-2004), and directing the Center’s Peace Ambassador Program. He has a PhD in Government from the University of Queensland, Australia, and an MA in Philosophy from the University of Melbourne, Australia. He is the author of The Hero’s Journey Toward a Second American Century (Greenwood Press, 2002); co-editor of Why the Cold War Ended (Greenwood Press, 1995) and Essays on Peace (Central Queensland University Press, 1995); and authored more than seventy articles, chapters, and book reviews on peace, ethnic conflict and conflict resolution. He has conducted research and fieldwork in the ethnic conflicts in East Timor, Kosovo, Macedonia, and Sri Lanka. He has organized a number of international workshops involving mid to high level participants from these conflicts. He has a website atwww.american.edu/salla/.

Introduction
Each year the US Department of Defense (DoD) lists a number of single line items in its budget that have a program number such as 0605236F, code names like CLASSIC WIZARD or vague description such as “special evaluation program,” that don’t refer to any weapons system known to the general public, Congressional officials or even defense analysts. These single line items are covers for the creation of a ‘black budget’ – a top secret slush fund set up by the DoD, with the approval of the US Congress, to apparently fund intelligence organizations such as the CIA as well as covert operations and classified weapons programs by the DoD. The ‘black budget’ allows intelligence activities, covert operations and classified weapons research to be conducted without Congressional oversight on the grounds that oversight would compromise the secrecy essential for the success of such ‘black programs’. These ‘black programs’ are typically classified as ‘Special Access’ or ‘Controlled Access Programs’ that have a security classification system more rigorous than the secret-top secret classifications for most government agencies, making such programs known only to those with a ‘need to know’. This report seeks to unmask the size of the black budget and the covert world of ‘deep black’ projects it funds by investigating the mechanisms used to transfer money into the black budget’. Following the money trail and official efforts to keep secret the size of the black budget and how it is generated, provides the key pieces of a complex financial and national security jigsaw puzzle.

The ‘black budget’ funds a covert world of unaccountable intelligence activities, covert military/intelligence operations and classified weapons programs. The conventional view is that this covert world is funded by Congressional appropriations that authorize the DoD to use US Treasury funds for classified projects and intelligence activities that appear as vague items on the DoD budget. Subtracting the cost of known weapons systems and programs from the total DoD budget gives Congressional analysts a means of estimating the size and scope of operations of the covert world of ‘black projects’, without knowing their precise budgets or activities. There is however compelling evidence that the covert world of black programs is primarily funded by a black budget created by the CIA rather than the DoD. Rather than being a beneficiary of a Congressionally sanctioned DoD ‘black budget’, the CIA has its own ‘unofficial’ black budget that acts as a conduit for funds to be secretly siphoned into the various military intelligence agencies associated with both the CIA and the DoD for intelligence activities, covert operations and weapons research.
The CIA has the unique legal ability among all US government departments and agencies to generate funds through appropriations of other federal government agencies and other sources “without regard to any provisions of law” and without regard to the intent behind Congressional appropriations. [2] Every year, billions of dollars of Congressional appropriations are diverted from their Congressionally sanctioned purposes to the CIA and DoD based intelligence agencies without knowledge of the public and with the collusion of Congressional leaders. The covert world of ‘black programs’ acts with virtual impunity, overseen and regulated by itself, funding itself through secret slush funds, and is free of the limitations that come from Congressional oversight, proper auditing procedures and public scrutiny.

This report examines the existence of a CIA ‘black budget’ and an extensive network of ‘black projects’ that it funds. The report identifies the legal framework established by the US Congress for the creation of a CIA ‘black budget’ from the appropriations earmarked for other federal agencies that are siphoned through the CIA as the sole conduit of black budget funds. The report investigates the legal challenges to the constitutionality of the CIA’s black budget; how the CIA uses its legal authority to extract appropriations from government agencies such as HUD; how the CIA even launders non-appropriated money through other federal agencies; and the efforts the CIA goes to prevent these financial transfers from being exposed. Using as a case study the legal difficulties faced by an innovative mortgage finance company, Hamilton Securities, the report will argue that the CIA’s covert role in Hamilton’s demise is compelling evidence that the CIA was involved in funding irregularities in HUD.

The key to uncovering the true size of the black budget are the chronic accounting anomalies in the DoD budget that reveal that as much as one trillion US dollars is annually being siphoned by the CIA into the DoD for secret distribution to various military intelligence agencies and the ‘deep black’ programs they respectively support. All of this, it will be argued, has dubious constitutional status but is made legal by the various Congressional enactments, senior Congressional officials and the Executive Office. It will be finally argued that the size of black budget, the secrecy surrounding it, the extent senior officials in Federal agencies go to targeting individuals and companies that threaten to reveal where Congressional appropriations are ultimately going, suggest a vast network of ‘deep black projects’ that collectively form a highly classified second Manhattan Project whose existence, goals and budget are kept secret.

Read the entire report -> www1.american.edu/salla/Articles/BB-CIA.htm

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