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 to Osama 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.”

Other militant groups had already heard about the ransom payment and had their hands out, Mr. Rahman reported. “As you know, you cannot control the news,” he wrote. “They are asking us to give them money, may God help us.”

But Bin Laden was clearly worried that the payout was an American ruse intended to reveal the locations of senior Qaeda leaders. “It seems a bit strange somewhat because in a country like Afghanistan, usually they would not pay this kind of money to free one of their men,” he wrote.

“Is any of his relatives a big official?” he continued, referring to Mr. Farahi, the diplomat. It was a prescient question: Mr. Farahi was the son-in-law of a man who had served as a mentor to then-President Hamid Karzai.

Advocating caution, Bin Laden advised Mr. Rahman to change the money into a different currency at one bank, and then go to another and exchange the money again into whatever currency was preferred. “The reason for doing that is to be on the safe side in case harmful substances or radiation is put on paper money,” Bin Laden wrote.

Neither of the two men appeared to have known where the money actually came from. Aside from the C.I.A. money, Afghan officials said that Pakistan contributed nearly half the ransom in an effort to end what it viewed as a disruptive sideshow in its relations with Afghanistan. The remainder came from Iran and Persian Gulf states, which had also contributed to the Afghan president’s secret fund.

In a letter dated Nov. 23, 2010, Mr. Rahman reported to Bin Laden that the remaining $3 million had been received and that Mr. Farahi had been released.

The C.I.A., meanwhile, continued dropping off bags of cash — ranging each time from a few hundred thousand dollars to more than $1 million — at the presidential palace every month until last year, when President Hamid Karzai stepped down.

The money was used to buy the loyalty of warlords, legislators and other prominent — and potentially troublesome — Afghans, helping the palace finance a vast patronage network that secured Mr. Karzai’s power base. It was also used to cover expenses that needed to be kept off the books, such as clandestine diplomatic trips, and for more mundane costs, including rent payments for the guesthouses where some senior officials lived.

The cash flow has slowed since a new president, Ashraf Ghani, assumed office in September, Afghan officials said, refusing to elaborate. But they added that cash was still coming in, and that it was not clear how robust any current American constraints on it are.

“It’s cash,” said a former Afghan security official. “Once it’s at the palace, they can’t do a thing about how it gets spent.”

http://mobile.nytimes.com/2015/03/15/world/asia/cia-funds-found-their-way-into-al-qaeda-coffers.html

I don't know if there's anything worse than hypocrisy but this is it.