C.I.A. Cash Ended Up in Coffers of Al Qaeda

WASHINGTON — In the spring of 2010, Afghan officials struck a deal to free an Afghan diplomat held hostage by Al Qaeda. But the price was steep — $5 million — and senior security officials were scrambling to come up with the money.

They first turned to a secret fund that the Central Intelligence Agency bankrolled with monthly cash deliveries to the presidential palace in Kabul, according to several Afghan officials involved in the episode. The Afghan government, they said, had already squirreled away about $1 million from that fund.

Within weeks, that money and $4 million more provided from other countries was handed over to Al Qaeda, replenishing its coffers after a relentless C.I.A. campaign of drone strikes in Pakistan had decimated the militant network’s upper ranks.

“God blessed us with a good amount of money this month,” Atiyah Abd al-Rahman, the group’s general manager, wrote in a letter toOsama bin Laden in June 2010, noting that the cash would be used for weapons and other operational needs.

Bin Laden urged caution, fearing the Americans knew about the payment and had laced the cash with radiation or poison, or were tracking it. “There is a possibility — not a very strong one — that the Americans are aware of the money delivery,” he wrote back, “and that they accepted the arrangement of the payment on the basis that the money will be moving under air surveillance.”

The C.I.A.’s contribution to Qaeda’s bottom line, though, was no well-laid trap. It was just another in a long list of examples of how the United States, largely because of poor oversight and loose financial controls, has sometimes inadvertently financed the very militants it is fighting.

While refusing to pay ransoms for Americans kidnapped by Al Qaeda, the Taliban or, more recently, the Islamic State, the United States has spent hundreds of billions of dollars over the last decade at war in Iraq and Afghanistan, some of which has been siphoned off to enemy fighters.

The letters about the 2010 ransom were included in correspondence between Bin Laden and Mr. Rahman that was submitted as evidence by federal prosecutors at the Brooklyn trial of Abid Naseer, a Pakistani Qaeda operative who was convicted this month of supporting terrorism and conspiring to bomb a British shopping center.

The letters were unearthed from the cache of computers and documents seized by Navy SEALs during the 2011 raid in which Bin Laden was killed in Abbottabad, Pakistan, and had been classified until introduced as evidence at the trial.

Details of the C.I.A.’s previously unreported contribution to the ransom demanded by Al Qaeda were drawn from the letters and from interviews with Afghan and Western officials speaking on the condition of anonymity because of the sensitivity of the issue. The C.I.A. declined to comment.

The diplomat freed in exchange for the cash, Abdul Khaliq Farahi, was serving as the Afghan consul general in Peshawar, Pakistan, when he was kidnapped in September 2008 as he drove to work. He had been weeks away from taking up his new job as Afghanistan’s ambassador to Pakistan.

Afghan and Pakistani insurgents had grabbed Mr. Farahi, but within days they turned him over to Qaeda members. He was held for more than two years. -  Read More at NYT

C.I.A. Cash Ended Up in Coffers of Al Qaeda

Afghanistan gave CIA money to al Qaeda for diplomat's ransom: NYT