Something similar could be said about Iran. They have some good people, but are crippled by a whacked out religious ideology which limits the competence not only in their human intel operations, but at the top of their leadership as well.....
As for Iran, after the Shah was overthrown, the mullahs made peace with and kept on many of the veterans of the Shah's secular minded intelligence agency, SAVAK, which had considerable experience with US and Western intelligence methods and thinking. As far as Iran's ruling mullahs are concerned, staying in power and looting Iran's wealth is more important than religious and ideological consistency.