WASHINGTON, October 28, 2005 (IslamOnline.net & News Agencies) - A federal grand jury dramatically charged top White House aide I. Lewis 'Scooter' Libby Friday, October 28, with lying to investigators in a CIA leak probe that has rocked President George W. Bush's administration.

Libby, chief of staff to Vice President Dick Cheney, faces up to 30 years in jail and a 1.25 million dollar fine if convicted in an explosive case arising from claims Bush aides "twisted" intelligence to justify the Iraq war, according to Agence France-Presse (AFP).

Libby resigned minutes after he was indicted, in an apparent bid to limit political fallout from an affair which threatens to badly taint the president's second term.

Cheney, on his part, said Libby would fight criminal charges in connection to the unmasking of a CIA agent in 2003.

"Mr. Libby has informed me that he is resigning to fight the charges brought against him. I have accepted his decision with deep regret," Cheney said in a statement released by the White House, according to AFP.

"In our system of government an accused person is presumed innocent until a contrary finding is made by a jury after an opportunity to answer the charges and a full airing of the facts. Mr. Libby is entitled to that opportunity."

"Because this is a pending legal proceeding, in fairness to all those involved, it would be inappropriate for me to comment on the charges or on any facts relating to the proceeding," said the embattled vice president.

Cheney also paid tribute to Libby, who resigned Friday after serving as Cheney's chief of staff since US President George W. Bush took office in January 2001 and was a key architect of the public case for war in Iraq.

"Scooter Libby is one of the most capable and talented individuals I have ever known. He has given many years of his life to public service and has served our nation tirelessly and with great distinction," said Cheney.

Cheney, left, reacts upon hearing the news of his top aide's indictment. (Reuters)

Bush's political guru Karl Rove, who was also in the sights of special prosecutor Patrick Fitzgerald during the two year probe, was not indicted, but will remain under investigation, his lawyer said.

"When citizens testify before grand juries, they are required to tell the truth," Fitzgerald, a hard charging Chicago-based prosecutor, said.

"The requirement to tell the truth applies equally to all citizens including persons who hold high positions in government."

Libby, a discrete backroom player in Washington, faces one count of obstruction of justice, two counts of perjury and two counts of making false statements.

With Libby's indictment, Cheney's role in a CIA leak scandal is seen thickening.

Fitzgerald said in a statement that Libby allegedly lied to FBI agents who interviewed him on October 14 and November 26, 2003 and to the grand jury in March 2004. The charges also said Libby engaged in obstruction of justice by impeding the grand jury investigation into the unauthorized disclosure of Valerie Plame's identity.

He was not, however, charged with knowingly blowing the cover of CIA spy Plame, the alleged offense which triggered Fitzgerald's investigation.

Plame's husband, former diplomat Joseph Wilson accused top Bush aides of naming her to discredit his criticism of intelligence used to justify the war in Iraq.

The indictment was a severe blow to Bush after the defeat of his Supreme Court pick Harriet Miers this week and as he struggles with high gasoline prices, falling approval ratings and questions about his leadership during flooding caused by Hurricane Katrina.

It could also reopen the explosive debate over whether the administration manipulated intelligence to take the country to war in Iraq in 2003, which this week claimed the life of its 2,000th US soldier.

Rove's lawyer Robert Luskin said he was confident his client would eventually be cleared.

Bush reacted by assailing Syria and Iran. (Reuters)

"The special counsel has advised Mr. Rove that he has made no decision about whether or not to bring charges and that Mr. Rove's status has not changed," Rove's attorney, Robert Luskin, said in a statement.

"Mr Rove will continue to cooperate fully with the special counsel's efforts to complete the investigation," Luskin said, adding that he was confident the probe would establish Rove had done nothing wrong.

Bush on Friday met top aides, including Rove, at the White House before heading off to Norfolk, Virginia to give a speech on his anti-terror campaign.

Bush, on his part, ignored the White House scandal on a visit to Virginia Friday and assailed Syria and Iran as "terrorism patrons", in his relentless bid to bolster waning support for the Iraq occupation.

Bush began a speech on the war on terrorism by telling his cheering audience: "Thanks for the chance to get out of Washington."

Bush, who did not mention the CIA leak scandal, touted progress in the global "war on terrorism" he launched after the September 11, 2001 attacks and said the United States would "deny radical groups the support and sanctuary of outlaw regimes."

"State sponsors like Syria and Iran have a long history of collaboration with terrorists -- and they deserve no patience from the victims of terror," the president told his audience in Norfolk, near the home of the Naval Station Norfolk, the world's largest naval station.

"The United States makes no distinction between those who commit acts of terror and those who support and those who support and harbor them -- because they are equally guilty of murder," he said, according to AFP.

Bush also said the United States and its allies had thwarted more than a dozen shipments of weapons of mass destruction, including equipment for Tehran's ballistic missile program.

White House officials contacted by AFP could not immediately flesh out those claims.

"In the last year, America and our partners in the Proliferation Security Initiative have stopped more than a dozen shipments of suspected weapons technology -- including equipment for Iran's ballistic missile program," said the president.

Facing slumping support for the war in Iraq, Bush warned that "the terrorists regard Iraq as the central front in their war against humanity. And we must recognize Iraq as the central front in our war against terror."

"This enemy considers every retreat of the civilized world as an invitation to greater violence. In Iraq, there is no peace without victory -- and so we will keep our nerve and win that victory," said Bush.