$1.45bn Iraq weapons probe

Iraq has issued arrest warrants for 27 officials over the alleged misappropriation of more than $1.45 billion of Government funds.

Officials said among those wanted were former Defence Minister Hazem al-Shaalan, who said from London that the accusations were a witchhunt against former government members to sabotage their political future.

Last month Ali Allawi, the current Minister of Finance, said the disappearance of the cash from the 2004-5 defence budget was "possibly one of the largest thefts in history".

The Government alleges an Iraqi firm employed by the Defence Ministry bought stockpiles of weapons from Poland and Pakistan in a no-bid process that were often useless.