Iran acknowledges it funds Afghan government

Iran acknowledged Tuesday it has been sending funds to neighboring Afghanistan for years, but said the money was intended to aid reconstruction, not to buy influence in the office of Afghan President Hamid Karzai.

Karzai said Monday he receives millions of dollars in cash from Iran, adding that Washington gives him "bags of money" too because his office lacks funds. US officials asserted the money flowing from Tehran was proof that Iran is playing a double game in Afghanistan, wooing the government while helping Taliban insurgents fighting US and NATO forces. Iran denies that. (AP)