AN ISLAMIC cleric being investigated by FBI agents for alleged links with Osama bin Laden DID live in Bolton.

Sheikh Abu Qatada briefly made Bolton his home in 1993 after he had been granted asylum in the UK.

But in an exclusive interview with the Evening News last night he denied accusations of close links with terrorism and claimed he had never met bin Laden.

Earlier this week Qatada, who is wanted in Jordan in connection with a series of explosions, denied through an interpreter, that he had money in a Bolton bank account.

But last night when the BEN provided him with his account number he admitted that he did have cash in the Bolton branch of the Royal Bank of Scotland.

Qatada then faxed a bank statement to us which he claimed was proof he did not -- as investigators allege -- have assets totalling £180,000, despite living on benefits.

He said he had just one bank account, held at the Royal Bank of Scotland, on Deansgate, Bolton, containing £1,205.86.

The account has now been frozen by the Treasury while investigations continue into his alleged links with terrorism.

Qatada sent his statement, which is in the alias of Omar Mahmoud Othman.

The cleric told the BEN he lived in Bolton for six months in 1993 following his bid for asylum.

He said: "I used to live in the town before I moved to London. My bank account is still held there and that is all the money I own. I will fight legally to have the account unfrozen so that I can feed my children."

Qatada said he could not remember the part of Bolton in which he lived but he recalled visiting a mosque every Friday.

He moved to London in 1994 but kept his Bolton account open.

Qatada's bank statement clearly shows incapacity benefits totalling £209.25 being paid into his account every week up until October 8.

On October 9, £4,700 was withdrawn from the account.

Security officers are monitoring his movements, claiming he poses "a significant risk of committing or providing support for acts of terrorism".

In a series of phone calls with us from his home in Acton, West London, Qatada denied those allegations.

He also slammed America as "terrorists", accused Prime Minister Tony Blair of being a "liar" and denied knowing Osama bin Laden.

Talking through his interpreter, he said: "The governments in the United States and Britain are liars.

"They claim I have this money to discredit me for speaking out and I will fight their claims.

"I am not a terrorist and I do not have a link with terrorism. I have never met or spoken to Osama bin Laden."

Qatada is wanted by the authorities in Jordan for a series of explosions and was sentenced to life imprisonment in his absence.

In 1989, he moved to Pakistan, teaching Islam at the university in Peshawar on the border with Afghanistan.

He then moved to Bolton, seeking asylum. But leading muslims in the town do not recall him being here.

Qatada, who said he believed America was "punishing a whole nation", told the BEN he opposed the dropping of bombs on Afghanistan.

He said: "America are criminals as are those who join them. When I see pictures of children dying in Afghanistan, I see criminal acts taking place.

"America did not give sufficient evidence but they target me because I speak out."

Asked whether he was saddened by the attacks on the World Trade Centre, he said: "I do not agree with any loss of innocent lives."

Qatada refuted claims he had £180,000 in a Bolton account.

And he issued a challenge to investigators. He said: "If the FBI believes I have that amount of money then I say come and look for it. I do not have that money and I should not be asked to prove that fact."

He believed Osama bin Laden was not responsible for the atrocities of September 11, but he did not state his reasons for those beliefs. Qatada asked America to provide more evidence.

A spokesman for the Treasury said: "We can confirm that we have frozen £180,000 worth of assets in the UK in connection with the war on terrorism."

Special branch officers have interviewed Qatada. The Royal Bank of Scotland has refused to comment on Qatada's account.