Hamid Karzai, the Afghan president, has said that his office receives cash in bags from Iran.

The Afghan leader said on Monday that this method of aid distribution is transparent and helps cover government expenses. He also said that the US makes similar cash payments.

The comments came after a report on Sunday that Karzai’s chief of staff, Omar Dawoodzai, receives covert bagfuls of money – possibly as much as $6 million in a single payment – sent by neighbouring Iran in a bid to secure influence.

Karzai said the money was used for palace expenses, salaries and for ‘people outside,’ but gave no further details.

The New York Times, citing an unnamed Afghan official, said that millions of dollars in cash channelled from Iran are used to pay Afghan parliamentarians, tribal elders and Taliban commanders.

US concern

Bill Burton, a White House spokesman, said world leaders should have ‘every reason to be concerned about Iran trying to have a negative influence on Afghanistan.’

He added Iran had a responsibility to exert ‘a positive influence on the formation of a government there, and to ensure that Afghanistan is not a country where terrorists can find safe harbour, or where attacks can be planned on […]