Originally posted by the Voice of America. Voice of America content is produced by the Voice of America, a United States federal government-sponsored entity, and is in the public domain. Afghan President Admits Receiving Money From Iran VOA News 25 October 2010 Afghan President Hamid Karzai listens during a press conference in Kabul, Afghanistan, 25 Oct. 2010. Photo: AP Afghan President Hamid Karzai listens during a press conference in Kabul, Afghanistan, 25 Oct. 2010. Karzai admitted his office receives money from Iran, describing it as a form of transparent aid, not secret payments to influence policy as reported by The New York Times. Afghan President Hamid Karzai acknowledged Monday that his office receives large cash payments in what he called "bags of money" from Iran, but said the money is a transparent form of aid. President Karzai told reporters in Kabul that Iran gives his office up to $975,000 twice a year for government expenses. He said the transactions were not secret and no different from cash payments from the United States and other "friendly countries." President Karzai's comments were in response to an article in The New York Times newspaper that his chief of staff, Umar Daudzai, has been receiving payments from Iran to allegedly promote Iran's interests in Afghanistan's presidential palace.  Mr. Karzai said Daudzai had been accepting the money on the Afghan leader's instructions. The Times quotes unnamed sources saying Iran uses its influence to "drive a wedge" between the Afghans and their American and NATO benefactors. The Iranian embassy in Afghanistan on Monday dismissed the report as "ridiculous and insulting." According to the newspaper report, the Afghan president and his chief of staff have used the money to pay Afghan lawmakers, tribal elders and Taliban commanders to secure their loyalty. The Times reports one Western official described the money as "a presidential slush fund." One Afghan official told the newspaper he believes Daudzai received between $1 million and $2 million every other month.  Some information for this report was provided by AP, AFP and Reuters. .