In December 1989, the United States launched its largest military operation since the Vietnam War, invading Panama with over 25,000 troops. Publicly, this operation—codenamed "Just Cause"—was justified as a mission to restore democracy. Beneath the surface, however, it was a high-stakes manhunt for Manuel Noriega, Panama’s military strongman and one of America’s most wanted drug traffickers. What made Noriega’s story particularly complex was his long-standing, covert relationship with the CIA—a relationship that helped nurture the very cocaine empire the US claimed to be battling.

Panama’s Strategic Significance and Noriega’s Rise

Panama might be a small Central American nation, but its importance to the United States historically stems from the Panama Canal. As a critical artery for global trade, the Canal was a significant geopolitical asset, controlled directly by the US for much of the 20th century through military bases and influence over Panama’s government.

The Cold War heightened American concerns about Soviet influence in Latin America, and Panama became a frontline ally in the fight against communism. Enter Manuel Noriega. His association with the CIA began as early as 1955, and by the mid-1960s, he was trained in intelligence and psychological warfare at the infamous School of the Americas—a US military institution notorious for producing many Latin American leaders implicated in human rights abuses.

By 1968, Noriega was Panama’s head of military intelligence, a position that served as a springboard for his simultaneous careers as a CIA asset and a drug trafficker. Utilizing his access and connections, Noriega facilitated the protection of drug shipments in exchange for payments — essentially acting as a gatekeeper for cartel operations in Central America.

The CIA’s Complicity and Noriega’s Drug Empire

The central question in Noriega’s story is how much the CIA knew about his drug dealings—and the answer appears to be: quite a lot. During the mid-1970s, when George H.W. Bush was director of the CIA, Noriega was not only known to American intelligence but was also placed on a regular salary, eventually earning over $200,000 annually. Noriega even met with Bush in Washington around this period.

The CIA’s relationship with Noriega was part of a broader pattern. America’s covert operations in Central America often involved working with individuals engaged in drug trafficking. The same groups smuggling cocaine into the United States were sometimes the ones transporting arms for US-backed rebels. Even as the Nixon administration considered Noriega for assassination in the early 1970s due to his criminal activities, they ultimately decided against it because of his perceived strategic value.

Noriega’s control expanded in 1983 when he became Panama’s de facto dictator. At this point, he forged strong alliances with powerful Colombian cartels. He offered landing strips and protection for drug shipments heading north, often charging upwards of $100,000 per flight. His Panama became a sanctuary for figures like Pablo Escobar after the Colombian drug lord was forced to go on the run in 1984. ## Money Laundering and an Opaque Banking System

Beyond mere transportation, Noriega capitalized on Panama’s emerging role as "the Switzerland of Central America." The country developed an intricate, privacy-focused banking system appealing to drug cartels seeking to launder billions of dollars. Cash from Miami flowed into Panama in planeloads, rapidly disappearing into shadowy financial networks under Noriega’s watchful eye.

This massive influx of illicit money helped fuel the cocaine empire, enriching the cartels and Noriega himself, while the CIA and US military continued to use him as their intelligence and military asset in the region.

The Cold War Winds Down and Noriega’s Fall

Noriega’s drug empire thrived through the 1980s, in part because the Reagan administration was simultaneously engaged in supporting the right-wing Contras fighting the Nicaraguan civil war. This support was illegal under US law and had to be conducted covertly, often relying heavily on Noriega for intelligence and arms shipments.

However, cracks began to show. Noriega’s brutal regime invited condemnation—most notably after the brutal murder of Hugo Spadafora, an outspoken critic of Noriega. Allegations against Noriega’s criminal empire became impossible to ignore, but the real turning point arrived as the Cold War waned. The US shifted its focus from fighting communism to tackling drug trafficking more aggressively.

In 1988, a Miami grand jury indicted Noriega on multiple drug charges. Despite his previous ties with the CIA, Noriega’s immunity was wearing thin. Operation Just Cause, the invasion of Panama, was launched in 1989, signaling a dramatic U-turn in US policy.

The Invasion and Aftermath

The invasion targeted Noriega’s regime directly, leading to over 500 Panamanian deaths and the loss of 23 US soldiers. After seeking refuge in the Vatican’s embassy and enduring a psychological siege involving blasting rock music, Noriega surrendered. He was flown to Miami, tried, and sentenced to 40 years in prison.

While Noriega’s downfall was highly publicized as a victory for the US "war on drugs," his legacy revealed uncomfortable truths about America’s international policies. Despite massive expenditures and casualties, drug trafficking has surged since his imprisonment. The structures of the cocaine empire Noriega helped build continue to thrive, with ever-growing profits benefiting powerful, shadowy criminal organizations.

Conclusion: The Paradox of the War on Drugs

Manuel Noriega’s story unravels the tangled relationship between the CIA’s covert interventions and the explosive growth of the cocaine trade. His rise from CIA asset to convicted drug lord underscores a dark paradox: in the bid to fight communism and narcotics, the US government repeatedly allied itself with drug traffickers, helping establish and shield a booming drug empire that would later become the "enemy."

Despite Noriega’s capture, the war on drugs has largely been a failure in the eyes of many analysts—an ironic testament to how the very operations meant to stop the drug trade helped sow its deepest roots.

The untold story of Noriega reveals that victories in covert warfare often come at a hidden price—and in the complex battle over drugs, that cost continues to reverberate today.