Karzai admits Iran gave millions

KABUL, Afghanistan – Afghanistan President Hamid Karzai on Monday acknowledged that his office regularly received large cash sums from Iranian officials but insisted there was nothing untoward about the payments.

The New York Times, in an article in Monday’s editions, described the periodic transfer of bulging sacks of currency to a senior Karzai aide and strongly suggested that the money was meant to curry favor on behalf of the Tehran government in policy matters.

At a news conference in the capital, the Afghan leader acknowledged receiving semi-regular cash payments totaling around $2 million annually from Iran but said the sums were meant to defray governmental operating costs. Other countries, including the United States, make such donations as well, he told reporters.

“The government of Iran assists (the presidential) office,” Karzai said. “Nothing is hidden. … Cash payments are done by various friendly countries to help the presidential office – to help expenses in various ways.”

In Washington, Philip Crowley, the chief State Department spokesman, said U.S. officials have turned over large amounts of cash to Afghan officials since the 2001 invasion because of the primitive condition of the country’s financial system. The Obama administration is skeptical of Iran’s motives “given its history of playing a destabilizing role with its neighbors,” Crowley said.

Hours before Karzai’s disclosure, Iranian authorities in Kabul dismissed the allegations with gusto.

“Such baseless rumors by certain Western media are raised to create anxiety in the public opinion and impair the expanding relations between the two friendly and neighboring countries,” the embassy said in the statement released early Monday, according to the pro-government Fars news agency.

But the revelations also could serve Iran’s interests, underscoring its continued influence in the region even as Washington attempts to isolate Tehran over its continued pursuit of sensitive nuclear technology.