The recent indictment of the CIA's No. 3 man, Kyle "Dusty" Foggo, for alleged acts of corruption has a CIA watchdog calling for tighter supervision of employees and contracts within the intelligence agency.

Meanwhile, a former employee says he believes those changes may already be occurring.

"The fact that someone could rise to the level of executive director while allegedly engaging in corrupt activities indicates that the CIA has defective personnel practices, to put it politely," said Steve Aftergood, an official with the Federation of American Scientists' Project on Government Secrecy.

The Washington-based federation was formed in 1945 by atomic scientists who felt that scientists, engineers and other innovators had an obligation to bring their knowledge and experience to bear on critical national decisions, according to its Web site. The Project on Government Secrecy is an arm of the federation and works, it says, to stop excessive government secrecy.

Foggo is accused of fraud and conspiracy during his last few years at the agency, where prosecutors allege that he steered contracts to friend and Poway businessman Brent Wilkes. Wilkes has also been indicted in the corruption case that sent former Congressman Randy "Duke" Cunningham to prison.

Responding to a series of written questions from the North County Times, agency officials said last week that they have strict controls in place to weed out dishonest employees and to monitor contracts and prices the agency pays to outside contractors. They declined to comment, however, on anything directly related to the Foggo case.

"Separate and apart from the matter before the courts: as a matter of course, we monitor contracts … including internal audits and audits by the CIA's Office of Inspector General," wrote agency spokesman Mark Mansfield.

Aftergood said that, while controls may exist, "Evidently, there was no effective system.

"It may be there needs to be more frequent scrutiny of contract arrangements and more attention paid to ensuring the integrity of senior officials."

Gene Poteat, a retired agency scientific intelligence officer who says he worked for the agency for 30 years, said in a phone interview with the North County Times last week that he believes the agency "will be tightening up considerably now" on contract oversight.

A federal grand jury has accused Foggo of using an using an earlier agency job as logistics officer to steer $1.7 million in secret supply deals to Wilkes, in exchange for private jet trips, luxury vacations, pricey meals and promises of future employment. In one case, he allegedly arranged for one of Wilkes' companies to be a middleman in selling bottled water to the intelligence agency at a 60 percent markup.

Poteat said changes are surely coming within the agency, if they haven't already.

"It's for sure that contracts for things like bottled water will now be scrutinized," Poteat said. "Once it gets in the public (eye) and embarrasses the agency, they will fix it, and it won't happen again."

Foggo's attorneys were out of the country for most of last week and could not be reached for comment. And CIA officials said they were under orders not to comment directly on the Foggo case. Wilkes' attorney, Mark Geragos, also could not be reached for comment.

In February, Foggo, the agency's third-highest ranking official, was indicted on seven counts of fraud; one count of conspiracy to commit fraud; and three counts of unlawful monetary transactions. He faces the possibility of nearly 150 years in prison if convicted on all counts and if he were to serve maximum consecutive sentences.

Mansfield wrote that all CIA employees are given polygraph tests before being hired and throughout their careers. He declined to comment, however, on if or how many times Foggo was tested.

Aftergood said that CIA personnel are supposed to be investigated every five years and be given a polygraph at that time.

"It's the reinvestigation that is the most important security tool, more than the initial investigation, because people don't normally go into government to commit fraud or other crimes," he said. "Those who do, tend to commit (crimes) midway through their career, either because of personal debt, substance abuse or other types of stress, or because opportunities present themselves."

Poteat said the agency normally administers polygraph exams to employees every five years, although the so-called lie-detector tests can occur more frequently if needed.

"If you travel abroad in certain areas, you are polygraphed," Poteat said.

In his 30 years with the agency, "I must have been polygraphed a dozen times," he said.

Asked if the top officials at the agency are also subjected to the tests, Poteat said, "Even the No.1 position is subjected to polygraph."

"The No. 3 guy most certainly was," Poteat said, referring to Foggo.

Poteat, who now serves as president of the McClean, Va.-based Association of Former Intelligence Officers, said the polygraph tests are exhaustive and can last hours and even go into multiple sessions.

"Are they perfect, we all know they are not," he said. "I expect they will tighten up that crack in the system and (in the future) will screen for things of the nature this guy was involved in."

Contact staff writer William Finn Bennett at (760) 740-5426, or wbennett@nctimes.com.