Iraq's former finance minister alleges $800m theft

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.

The former minister Ali Allawi told CBS’ 60 Minutes that $1.2bn (€949.8bn) had been allocated from the Iraqi treasury to the defense ministry to buy new weapons.

About $400m was spent on outdated equipment, while the rest of the money was simply stolen, he said in the interview that was broadcast yesterday.

Allawi, who has levelled such accusations repeatedly in the past, said the arms fraud was “one of the biggest thefts in history” and that corrupt former Iraqi officials were now “running around the world hiding and scurrying around”.

He did not name the officials who allegedly stole the money but Iraqi investigators are probing several weapons and equipment deals engineered by former procurement officer Ziad Cattan and other officials including former defence minister Hazem Shaalan.