London, Aug 10 (IANS) Pakistan Peoples Party (PPP) leader Asif Ali Zardari has accused President Pervez Musharraf of siphoning off millions of dollars of American aid given for supporting the war on terror. Zardari made the charge in an interview to The Sunday Times, which said the PPP leader’s impeachment move against Musharraf was causing panic in Washington and London, who see nuclear-armed Pakistan as a “far greater danger” than either Afghanistan or Iraq.

In the interview, Zardari claimed Musharraf had set up a “slush fund” which may have been used to support rogue elements within the Pakistani spy agency ISI.

“Our grand old Musharraf has not been passing on all the $1 billion a year that the Americans have been giving for the armed forces,” he said.

“The army has been getting $250m-$300m reimbursement for what they do, but where’s the rest?

“They claim it’s been going in budget support but that’s not the answer. We’re talking about $700m a year missing. The rest has been taken by ‘Mush’ for some scheme or other and we’ve got to find it.”

Zardari’s remarks came after a Pakistani government delegation headed by Prime Minister Yousuf Raza Gilani was told by US President George W. Bush that the ISI was supporting Taliban terrorists and was responsible for the July blast at the Indian embassy in Kabul.

“We’re looking for the money. I think he (Musharraf) has a slush fund being used for this and for some activity for the future,” he told The Sunday Times.

Zardari also accused the president of economic sabotage and fomenting conflict in Baluchistan and the tribal areas. “They laid so many mines for us,” he said.

“They spent all the money so we would have to borrow; they didn’t pass on the increased price of oil; nor added a single extra megawatt of power in the last 10 years. All these things were deliberately thought out so at the end of day they can turn round and tell the world, ‘Look, democracy doesn’t deliver’, and step back in,” said Zardari.