According to reports, the Pentagon has paid a UK PR firm 500 million dollars to create fake terrorist videos in Iraq as a propaganda campaign.

The secret move was exposed by the Bureau of Investigative Journalism.

PR firm Bell Pottinger worked with the US military to create the propaganda in a secret operation.

The firm is known for its controversial clients including the Saudi government and Chilean dictator Augusto Pinochet’s foundation.

The UK firm reported to the CIA, the National Security Council and the Pentagon on the project. Their aim was to portray Al-Qaeda in a negative light.

The White House and General David Petraeus signed off on the content produced by the agency.

The operation started after US invaded Iraq and was aimed at promoting the “democratic elections” for the government and then moved on to more lucrative psychological and information operations.

The Pentagon confirmed that the firm worked for them under the Information Operations Task Force (IOTF) creating content which they claim was truthful.

The PR firm also worked under the Joint Psychological Operations Task Force (JPOTF). The Pentagon, however, did not comment on this.

US law prohibits the administration from using propaganda on its population, so the government used an outside firm to create the content.

According to the documents, the Pentagon paid $540 million to the firm between 2007 and 2011 and $120 million in 2006.