Skip to content
IRAQ'S CORRUPTION
العربية
Cases

Ministry of Defence arms-procurement scandal under the interim government (about $1.3bn, from 2004 to 2005)

Under Defence Minister Hazim al-Shaalan (from June 2004 to May 2005) the ministry paid roughly $1.3bn up front, much of it in cash and through intermediaries, for arms and equipment that was largely obsolete or substandard (e.g., 28-year-old Soviet-made helicopters bought in Poland, poorly armoured vehicles, copied machine-guns). In September 2005 the Commission of Public Integrity (CPI) chief Radhi al-Radhi sent a dossier to the Central Criminal Court and said losses were estimated at $1.3bn to $2.3bn. Al-Shaalan and procurement chief Ziad Cattan left Iraq; both were later convicted in absentia in several cases.

Period
From June 2004 to May 2005
Sector
Defence and securityArms procurement, interim government (Allawi)
Kind of case
Criminal prosecution
Jurisdiction
Federal Iraq

How the money moved

Contracts signed without tenders or formal contracts, advance payments from the ministry's Central Bank account to intermediary firms, purchase of overpriced, second-hand or fake equipment; funds moved abroad.

What happened

Warrants (2005); in-absentia convictions of the minister (2007) and of the procurement chief (2015, 2018). A later account says that the minister's convictions were covered by the 2008 amnesty law. This has not been confirmed by a court or by an official Iraqi source. No recovery of funds reported.

Open questions

  • Primary court records for the 2008 acquittal or amnesty of al-Shaalan.
  • Was any of the about $1.3bn recovered (Poland, Jordan, Lebanon accounts)?
  • Status of Interpol notices for Cattan.

People and companies

The table lists everyone this case names, with their legal status on the date shown. A status in this case does not carry over to any other case, and an accusation is not a conviction. How to read the status.
People and companies
NameRole in the caseLegal statusDetailAs of
Ziad Tariq Cattan (al-Qattan)
زياد القطان
Procurement chief; deputy secretary-general / secretary-general of the Ministry of Defence (from 2004 to 2005)Convicted in absentiaMultiple in-absentia convictions announced by the Integrity Commission: 2 years (30 March 2015, Art. 341, rations contract for Tariq camp); 2 years (7 July 2015, Art. 331, Zuhur Nawroz rations contract); three consecutive 2-year sentences (Rusafa Integrity Criminal Court, 11 November 2018, Art. 340) for light-ammunition, equipment and Fallujah camp contracts. Described as a fugitive.25 September 2026
Hazim al-Shaalan
حازم الشعلان
Minister of Defence (from June 2004 to May 2005)Convicted (reported)Sentenced in absentia by the Central Criminal Court to 7 years (30 May 2007) and to 3 years under Penal Code art. 341 over $5.053m of armoured-car purchases (announced August 2007), according to the Integrity Commission as reported by Aswat al-Iraq. A later account, which cites the January 2012 quarterly report of the US Special Inspector General for Iraq Reconstruction, says that the crimes were covered by the 2008 amnesty law. This has not been confirmed by a court or by an official Iraqi source. (Corrected on 30 September 2026.)30 September 2026
Radhi Hamza al-Radhi
راضي حمزة الراضي
Head of the Commission of Public Integrity (from 2004 to 2007)Not charged as of the date of writingInvestigating official; source of the $1.3 to 2.3bn estimate.25 September 2026

Sources

These are the documents on which this case rests. Each quote is given in the language of the document.
  1. Iraqi News Agency (INA), statement of Supreme Judicial Council spokesman12 November 2018Integrity Commission statementTier A

    جنايات الرصافة تصدر حكما بالحبس المشدد لنائب الامين العام لوزارة الدفاع الاسبق

    المحكمة أصدرت 3 أحكام بالسجن لمدة سنتين تنفذ بالتعاقب
    OriginalSHA-256 9c0aeaadbd18
  2. The Independent (Patrick Cockburn)19 September 2005Press reportTier D

    What has happened to Iraq's missing $1bn?

    Military equipment purchased in Poland included 28-year-old Soviet-made helicopters.
    Original
  3. The Irish Times (Michael Jansen)20 September 2005Press reportTier D

    Iraq pursues former minister for $1.3bn corruption

    accused of misappropriating at least $1.3 billion
    Original
  4. The Guardian (Michael Howard)20 September 2005Press reportTier D

    Ex-Iraqi defence minister wanted over $1bn fraud

    Our estimates begin at $1.3bn [£720m] and go up to $2.3bn
    Original
  5. Mehr News Agency (citing Aswat al-Iraq / Integrity Commission statement)27 August 2007Press reportTier D

    الحكم بالسجن على وزير الدفاع العراقي الاسبق حازم الشعلان

    أصدرت في 30 أيار/ مايو الماضي حكما بالسجن لمدة سبع سنوات غيابياً على وزير الدفاع الاسبق حازم الشعلان
    Original
  6. Alsumaria News (reporting Integrity Commission statement)30 March 2015Press reportTier D

    حكم قضائي بـ"الحبس الشديد" بحق امين عام وزارة الدفاع بحكومة علاوي

    المدان الهارب زياد القطان
    Original
  7. Alsumaria News (reporting Integrity Commission statement)7 July 2015Press reportTier D

    الحبس الشديد لمدة سنتين لنائب الامين العام السابق لوزارة الدفاع

    حبساً شديداً لمدة سنتين اثنين استنادا إلى احكام المادة (331) من قانون العقوبات
    Original
  8. Arabic Wikipedia25 September 2026Press reportTier D

    حازم الشعلان

    وفي العام 2008، أصدر القضاء بحقه البراءة لعدم ثبوت الأدلة
    Original
  9. English Wikipedia (citing SIGIR January 2012 Quarterly Report)25 September 2026Press reportTier D

    Hazim al-Shaalan

    said that the crimes were covered by Amnesty legislation passed by the Council of Representatives of Iraq in 2008
    Original