Iraq reports US$1 billion defense theft
A total of some US$1 billion has been stolen from the Iraqi Defense Ministry, Britain’s Independent daily reported on Monday. The money had been earmarked for training and equipping the Iraqi army, but was embezzled abroad in cash and has disappeared, the report said. “It is possibly one of the largest thefts in history. Huge amounts of money have disappeared. In return, we got nothing but scraps of metal,” The Independent quoted Iraqi Finance Minister Ali Allawi as saying. Most of the money was supposedly spent buying arms from Poland and Pakistan and was paid up-front out of the ministry’s account with the Central Bank. Military equipment purchased in Poland included 28-year-old Soviet-made helicopters. The paper listed a series of problems with the arms purchased, including low-quality armored cars. Another deal turned up a shipment of the latest MP5 submachine guns, which were actually Egyptian copies worth a fraction of the price, according to the report.
See also: Ex-defence minister ‘will be arrested over $1bn’