Exclusive: Top CIA Official Under Investigation

March 3, 2006 — -- A stunning investigation of bribery and corruption in Congress has spread to the CIA, ABC News has learned.

The CIA inspector general has opened an investigation into the spy agency's executive director, Kyle "Dusty" Foggo, and his connections to two defense contractors accused of bribing a member of Congress and Pentagon officials.

For more investigations by Brian Ross and ABC Investigative Unit, click here.

The CIA released an official statement on the matter to ABC News, saying: "It is standard practice for CIA's Office of Inspector General -- an aggressive, independent watchdog -- to look into assertions that mention agency officers. That should in no way be seen as lending credibility to any allegation.

"Mr. Foggo has overseen many contracts in his decades of public service. He reaffirms that they were properly awarded and administered."

The CIA said Foggo, the No. 3 official at the CIA, would have no further comment. He will remain in his post at the CIA during the investigation, according to officials.

Two former CIA officials told ABC News that Foggo oversaw contracts involving at least one of the companies accused of paying bribes to Congressman Randall "Duke" Cunningham. The story was first reported by Newsweek magazine.

The California Republican has pleaded guilty after admitting he accepted $2.4 million in bribes in exchange for arranging defense contracts. He was sentenced today to eight years and four months in prison forcorruption. Federal law enforcement officials said Cunningham is cooperating and the investigation is continuing.

As executive director of the CIA, Foggo oversees the administration of the giant spy agency. He was appointed to the post by CIA Director Porter Goss after working as a midlevel procurement supervisor, according to former CIA officials.

While based in Frankfurt, Germany, he oversaw and approved contracts for CIA operations in Iraq.

Foggo is a longtime friend of Brent Wilkes, referred to as co-conspirator No. 1 in government documents filed in the Cunningham investigation. The two played high school football and were in each other's weddings.