Karzai: Plastic bags stuffed with cash are just Iran being 'neighbourly'

Published on Monday 25 October 2010 17:12

Bag of cash from Iranian officials, paid into Hamid Karzai's office coffers, were part of a transparent aid programme between two friendly neighbours, the president said yesterday. Mr Karzai denied the money was part of an underhand plan to buy anti-American influence.

Mr Karzai admitted that bags of money were routinely transferred from Iranian officials to his presidential staff. "This is nothing hidden," he said. "We are grateful for Iranian help."

Nonetheless, the suggestion of state-sanctioned duplicity in Mr Karzai's palace will raise fresh doubts over his status as a credible partner in the nine-year fight against America's enemies.

Mr Karzai has lashed out against his western backers, in public. He has said Nato's strategy is not working and once threatened to join the Taleban.

Allegations that his government took cash payments from Iran first emerged this weekend when it was claimed Mr Karzai's chief of staff, Umar Daudzai, accepted a plastic bag bursting with banknotes from the Iranian ambassador, Feda Hussein Maliki, at the end of a presidential visit to Tehran in August.

Afghan officials said Mr Maliki came on to the presidential plane clutching bundles of euros in a shopping bag and handed it to Mr Daudzai before take-off.

At a press conference yesterday, Mr Karzai claimed the US had made similar donations. Iran, he said, donated up to €700,000 (623,000) once or twice a year to promote neighbourly relations.

"They want good relations in return," Mr Karzai said. "Lots of other things in return. Afghanistan and Iran have neighbourly relations.

"We have also asked lots of things in return in this relationship, so it's a relationship between neighbours, and it will go on and we'll continue to ask for cash help from Iran."

Asked if the money came in bags as reported, Mr Karzai said: "It does give bags of money yes, yes it does … it's all the same, let's not make this an issue."

His remarks came moments after the Iranian embassy in Kabul dismissed the allegations as "ridiculous and insulting".

Afghan and western officials have claimed the money was paid into a palace slush fund that has been used to bribe Afghan politicians, tribal elders and even Taleban commanders.

Mr Daudzai is a former ambassador to Tehran. Afghan sources say he often tries to advance Iranian interests, and briefs the president against the US.

"Iran paying money to the president is nothing new," said Ahmad Behezad, an MP from Herat, which borders Iran. "They paid money to support Karzai's re-election campaign, and he used the money to bribe people to support him."