Mexico to spend 'drugs cash haul'

The stash included dollars, euros and Mexican pesos

Mexico is to use $205m (£101m) seized at an alleged drug-trafficker's house to fund drug treatment programmes and tackle organised crime, officials say.

The money was found in March hidden behind false walls at the Mexico City home of a Chinese-Mexican businessman.

No-one had claimed the money within the legal 90-day limit so it now belonged to the state, Mexican officials said.

Businessman Zhenli Ye Gon, who denies drug-trafficking charges, was arrested and indicted this week in the US.

Mexican Attorney General Eduardo Medina Mora announced at a news conference that no-one had come forward to claim the money found during a police raid on Mr Ye Gon's home.

At the time, Mexican officials said it was one of the world's biggest drugs cash hauls.

Dollar bills were discovered hidden behind false walls and in suitcases and cupboards, along with smaller amounts of euros and Mexican pesos.

Zhenli Ye Gon alleges he was set up regarding the money

"The resources have been credited to the accounts of the judiciary, the attorney general's office and the health ministry," he said.

The money would be spent on rehabilitation programmes for addicts, on police equipment and on boosting operations of the judiciary to bring drug dealers to trial, officials said.

Mr Ye Gon, arrested this week in a suburb of Washington DC, was indicted by a federal grand jury for conspiring to aid the production of methamphetamines destined for the US.

Crystal meth

The dual Mexican-Chinese national is also wanted in Mexico on drug-trafficking, organised crime and weapons charges.

Mexican prosecutors suspect him of illegally importing large quantities of pseudoephedrine, a chemical used in the production of methamphetamine or crystal meth.

Mr Ye Gon, who owns a pharmaceutical laboratory, denies all the charges.

He has said he was forced to store the money by associates of the Mexican president, Felipe Calderon, during the 2006 election campaign.

Mr Calderon has said these claims are "pure fiction".