Ahmed Wali Karzai, brother of Afghan President Hamid Karzai, has been on the CIA payroll for the past eight years, according to the New York Times. (Allauddin Khan/Associated Press)

Ahmed Wali Karzai, the brother of the president of Afghanistan, gets regular payments from the CIA and has for much of the past eight years, The New York Times reported Tuesday.

The newspaper said that according to current and former American officials, the CIA pays Karzai for a variety of services, including helping to recruit an Afghan paramilitary force that operates at the CIA's direction in and around Kandahar.

The CIA's ties to Karzai, who is a suspected player in the country's illegal opium trade, have created deep divisions within the Obama administration, the Times said.

Allegations that Karzai is involved in the drug trade have circulated in Kabul for months. He denies them.

Critics say the ties with Karzai complicate the United States' increasingly tense relationship with his older brother, President Hamid Karzai. The CIA's practices also suggest that the United States is not doing everything in its power to stamp out the lucrative Afghan drug trade, a major source of revenue for the Taliban.

Some American officials argue that the reliance on Ahmed Wali Karzai, a central figure in the south of the country where the Taliban is dominant, undermines the U.S. push to develop an effective central government that can maintain law and order and eventually allow the United States to withdraw.

"If we are going to conduct a population-centric strategy in Afghanistan, and we are perceived as backing thugs, then we are just undermining ourselves," Maj. Gen. Michael T. Flynn, the senior American military intelligence official in Afghanistan, was quoted by the Times in an article published on its website.

Karzai denies involvement in drug trade

Ahmed Wali Karzai told the Times that he co-operates with American civilian and military officials but does not engage in the drug trade and does not receive payments from the CIA.

Karzai helps the CIA operate a paramilitary group, the Kandahar Strike Force, that is used for raids against suspected insurgents and terrorists, according to several American officials. Karzai is also paid for allowing the CIA and American Special Operations troops to rent a large compound outside the city, which also is the base of the Kandahar Strike Force, the Times said.

Karzai also helps the CIA communicate with, and sometimes meet with, Afghans loyal to the Taliban, the newspaper reported.

CIA spokesman Paul Gimigliano told the Times: "No intelligence organization worth the name would ever entertain these kind of allegations."