$800 Million in Funds for Iraqi Army Stolen by Former Iraqi Government Officials

NEW YORK — Iraq's former finance minister alleged in a U.S. television report aired Sunday that up to $800 million 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 $1.2 billion had been allocated to the defense ministry to buy new weapons. About $400 million was spent on outdated equipment, while the rest of the money was simply stolen, he said.

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."

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