Karzai admits receiving ‘bags of money’ from Iran

Afghan President Hamid Karzai admitted yesterday that his chief of staff had received “bags of money” from Iran but insisted the payment was transparent and a form of aid from a friendly country.

Cash payments “are done by various friendly countries to help the President’s office... this is transparent,” Mr Karzai told a press conference.

The New York Times reported Saturday that Mr Karzai’s chief of staff, Umar Daudzai, received regular cash payments from Iran, a US foe and reportedly trying to expand its influence in the presidential palace in Kabul.

Mr Karzai angrily rejected the reports that the payments were secret.

“This is nothing hidden. We are grateful for Iranian help in this regard. The United States is doing the same thing. They’re providing cash to some of our offices,” he said.

Asked if the money came in bags, as reported, he said: “It does give bags of money yes, yes it does... it’s all the same let’s not make this an issue.”

He said Iran has assisted his government with up to €700,000 once or twice a year in the form of official aid.

“He (Mr Daudzai) is receiving the money on my instructions,” he added.

The New York Times, citing unnamed Afghan officials, said the payments total millions of dollars and go into a secret fund that Mr Daudzai and Mr Karzai have used to pay Afghan lawmakers, tribal elders and even Taliban commanders to secure their loyalty.

“It’s basically a presidential slush fund,” one Western official is quoted by the paper as saying. “Daudzai’s mission is to advance Iranian interests.”

The US said it “remains sceptical of Iran’s motives” in providing money to Afghanistan.

Thousands of Pentagon files leaked in July indicated that Iran is funding the Taliban nine years after the 2001 US-led invasion ousted them from Kabul. Iranian President Mahmoud Ahmadinejad denied those charges.

Answering a question on what the Iranian authorities wanted in return for their payments, Mr Karzai replied angrily that they wanted good relations.

“They want good relations in return. Lots of other things in return, Afghanistan and Iran have neighbourly relations.”