Illegal Drug Profits Went to Contras, Senators Told

A convicted Cuban-born money launderer with connections to Panamanian leader Manuel A. Noriega told a Senate panel today that private drug money and U.S. funds were funneled through a front corporation for the Contra rebels in Nicaragua.

Ramon Milian Rodriguez, testifying in the fourth day of hearings on Noriega’s activities, said he headed an organization for the Colombian Medellin drug cartel that transported $200 million a month between 1979 and 1982 in drug money across the southern U.S. border and made payments of $10 million a month to the de facto Panamanian leader.

Milian publicly raised long-held assertions that illegal drug money aided the U.S.-backed Contra rebels fighting the Sandinista government in Nicaragua.

However, Sen. John Kerry (D-Mass.), chairman of the Foreign Relations subcommittee who was questioning Milian, declined to delve into detail on whether Milian himself transported CIA money to the Contras while at the same time laundering money for the drug cartel.

A document entered into evidence, however, appeared to link Milian’s activities to the CIA by showing a list of figures under the heading “CIA.”

“It refers to one shipment of money I received,” Milian said. “It shows that I received a shipment of $3 million and change. I always got instructions with it and I carried out the instructions.”

“Are you aware of whether or not narcotics proceeds at some time may or may not have supported Contra efforts?” Kerry asked Milian.

“Yes, sir,” he said. “Narcotics proceeds were used for the Contras.”