A TAXI driver assisted an al-Qaeda ‘director’ and joked about conning people into financing terrorism by hosting a fake fund-raiser for earthquake victims, a court heard.

The conversation was overheard by police investigating what the prosecution have described as a terrorists’ ‘active service cell’ which met in Dubai and Manchester in 2005 and 2006.

Habib Ahmed, aged 28, from Cheetham Hill is accused of assisting Rochdale-born Rangzieb Ahmed, aged 33, of Barnston Avenue, Fallowfield, during his travels to Dubai on ‘important al-Qaeda business.’

The pair were preparing to mount a top-level terrorist mission when their controller was killed, it was alleged.

A jury at Manchester Crown Court was told that the duo met in Dubai and that Rangzieb Ahmed, who has been described as al-Qaeda’s number three, intended to travel on to South Africa as part of the unknown plot.

But the plan faltered when a man called Hamza Rabia was killed.

The jury was shown a series of documents which had been viewed on a computer found at Habib Ahmed’s home.

They included Google searches on bomb-making chemicals and where to buy them in Manchester, the workings of grenades and small arms and the addresses of embassies, British military bases and former defence secretary Geoff Hoon MP.

Searches were also done on American military movements in this country, the UK British special forces and the structure of the Metropolitan Police counter-terrorism unit S013.

Other searches called up pages titled ‘A Study of Assassination’ and another called ‘Guerilla Warfare’.

Donations

Information was also sought on Salman Rushdie and Sir Trevor Chinn, the chief executive of a company said to have made donations to the Labour party.

In one covertly-recorded conversation, dad-of-two Habib Ahmed spoke of the difficulties of fund-raising for terrorism, saying people didn’t give as much money as before, the court heard.

Prosecutor Andrew Edis QC said: "Habib Ahmed says he is going to have a party when he gets back – to invite 26 people and charge them £30 to £40."

He added: "They were obviously planning to raise money for terrorism by pretending it is for the earthquake and by charging people £30-£40 a head to be fed two samosas."

Manchester Crown Court heard the conversations suggested the pair were comparing notes on what they did during terrorism training in Pakistan.

Rangzieb Ahmed and Habib Ahmed are both charged with membership of al-Qaeda between 2002 and 2006 and being in possession of three books linked with terrorism.

Rangzieb Ahmed is further charged with directing terrorism and possessing a rucksack containing traces of explosives.

Habib faces additional charges of possession of information for terrorist purposes contained in books and electronic records connected with terrorism.

He is also charged with attending a terrorist training camp in Pakistan.

Habib Ahmed’s wife, Mehreen Haji, aged 27, is charged with two counts of funding terrorism to the tune of £2,005. They deny the charges.

The trial continues.