The weekly magazine Profil dropped the bombshell over the weekend: Haider, killed in a drunk-driving accident in October 2008 aged 58, had allegedly deposited 45 million euros (59.6 million dollars) over the years in secret accounts in Liechtenstein.

Rumours, denials and shocking new allegations have continued since.

According to the weekly Falter, Libyan leader Moamer Kadhafi apparently paid some 45 million euros into the coffers of Haider's far-right Freedom Party (FPOe).

Funds also came from Iraq and dictator Saddam Hussein, the newspaper added, citing the sensational diary of a former FPOe general secretary, Walter Meischberger.

In his journal -- which anti-corruption prosecutors confiscated in February as part of another investigation -- Meischberger claimed that Haider's former secretary Franz Koloini had "confirmed the Saddam money."

Koloini and others "brought 10 million euros, probably 15 million, back from Iraq at the time," Falter quoted from the diary.

A further five million euros flowed into FPOe coffers from Swiss accounts belonging to Hussein's deceased sons, it added.

Vienna prosecutors confirmed the existence of the journal but not its content.

Not only Moamer Kadhafi, but also his son Saif al-Islam Gaddafi, who was a close friend of Haider, apparently contributed to FPOe's funds.

"Kadhaffi always sent us money before elections, and it was always cash," an unnamed source close to Haider was quoted as saying by Profil.

"It was wrapped in plastic," the source added.

This was how the far-right leader -- who visited Kadhafi in 2000 and Hussein in 2002 -- and his associates smuggled money out of the country and into Austria before redistributing it into separate accounts around the country and abroad, Profil said.

"Each visit brought us cash," another unnamed source told the daily Kurier.

Officially, the Freedom Party only disposed of about 6.38 million euros per year in the 1990s.

Haider's millions were used to bribe journalists and bankers, Falter wrote.

But at his death, only five million euros were left in the Liechtenstein accounts, Profil said.

Media reports said Haider's personal assistant Gerald Mikscha -- who had helped set up the accounts -- had fled with some 38 million euros and was hiding in Switzerland or Paraguay.

In another twist, prosecutors in Germany, Switzerland and Austria -- who supposedly uncovered the Haider accounts, according to Profil -- have now denied finding any money that belonged to the charismatic politician.

Meanwhile, Koloini rebuffed Meischberger's claims, insisting to the Austria Press Agency he knew nothing about the alleged millions.

"We talked about rumours: he brought them up and I said that I had also heard these rumours," he said of his discussion with Meischberger.

Meischberger took a similar line in comments to media.

"Don't take all of this story too seriously," he was quoted as saying by the daily Kurier.

Amidst the whirlwind of hearsay and gossip, the latest Haider saga has nevertheless had some positive effects by restarting the debate over party financing.

Until now, political parties in Austria were required to disclose donations of more than 7,260 euros but no sanctions were imposed on those who failed to do so.

Donors could also remain anonymous and handouts from companies or from abroad were both allowed, earning Austria sharp criticism by the European election watchdog ODIHR this year.

The ruling coalition of Social Democrats and conservatives is planning a new law to amend this which should come into force in 2011.

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