Ex-Iraqi minister 'facing arrest'

Iraqi soldiers have been left with inferior weapons, it is alleged

Authorities in Baghdad are preparing to issue an arrest warrant against a former defence minister, a senior Iraqi corruption investigator has said.

Radhi al-Radhi, the head of Iraq's Commission on Public Integrity, said a warrant for Hazim Shaalan's arrest would be issued in days.

It is in connection to the alleged theft of $1bn (£554m) from the post-Saddam Iraqi defence ministry.

Mr Shaalan, who stood down in February, has denied any wrongdoing.

He now lives in Jordan, but is also said to visit London.

Speaking from the Jordanian capital, Amman, an aide to Mr Shaalan, Amer Hantouli, said the allegations were "politically motivated".

'Disappearing money'

The alleged theft took place under the former interim government, which was replaced after elections in February of this year.

We got nothing but scraps of metal Iraqi finance minister Ali Allawi

Ali Allawi, Iraq's finance minister, has called the matter "one of the largest thefts in history".

The money was intended to buy the latest equipment for the Iraqi Army but cheap, out-of-date pieces were purchased instead, it is claimed.

Cash was then siphoned abroad before disappearing, it is alleged.

In one case, 28-year-old helicopters were said to have been purchased despite the fact they should have been scrapped after 25 years.

In other examples, officials are said to have deliberately paid too much for such items as bullets, with the difference between the actual cost and the inflated amount paid also disappearing.

Such has been the knock-on effect of the theft, it is alleged that Iraqi Army soldiers have been left without the basic equipment they need to fight the ongoing insurgency.

"Huge amounts of money have disappeared," said Mr Allawi.

"In return we got nothing but scraps of metal."