Iraq’s former finance minister has alleged in a US television report that up to $800m (€633.5m) meant to equip the Iraqi army had been stolen from the government by former officials through fraudulent arms deals.

IYAD ALLAWI, a former member of Saddam's Baath party who then worked with the CIA to topple him, was chosen as prime minister of Iraq yesterday.

A Shiite surgeon, who survived a Saddam Hussein ordered assassination attempt in London while in exile, tonight appears set to Iraq’s new prime minister.