$800m 'stolen from Iraq govt'
2006-10-23 09:19
Baghdad - Iraq's former finance minister alleged in a US television report on Sunday that up to $800m 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's 60 Minutes that $1.2bn had been allocated from the Iraqi treasury to the defence 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About $400m was spent on outdated equipment, while the rest of the money was simply stolen, he said in the interview.
Allawi said the arms fraud is "one of the biggest thefts in history" and that corrupt former Iraqi officials are now "running around the world hiding and scurrying around".
Weapons and equipment deals
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 Hazim Shaalan.
Most of the fraudulent arms purchases were allegedly made during the term of former interim prime minister Ayad Allawi who took office after occupation authorities turned over sovereignty to Iraqis on June 28, 2004.
When new defence minister Saadoun al-Dulaimi took office in May 2005, an investigation was opened into several alleged cases of corruption.
Ayad Allawi and Ali Allawi are cousins.
Bribes
Tapes obtained by 60 Minutes from a former associate of Cattan allegedly captured Cattan talking about paying large bribes to Iraqi officials.
Cattan, wanted by Iraqi authorities and now living in Paris, was interviewed in the same 60 Minutes broadcast and said he can account for the hundreds of millions he used to purchase weapons.
"I have documentation. I give it to you in your hands," Cattan said.
He said the tapes, excerpts of which were played on the broadcast, had been doctored and were not authentic.
Experts at Jane's, a leading authority on military hardware, told 60 Minutes the documentation Cattan provided did not prove whether any of the weapons he ordered - paid for in advance - had been delivered to Iraq.
- AP