Iraqi Prime Minister Haider al-Abadi revealed Sunday that 50,000 names of nonexistent troops were found on the military payroll, reported Al Jazeera.
"In terms of reforms in the military establishment, Prime Minister Haidar al-Abadi uncovered the presence of 50,000 fictitious named in four military units," Abadi's office members wrote in a statement following a parliament session.
Abadi announced the "ghost soldiers" while at the same time promising to further crack down on corruption - something U.S. forces had been assisting with during the Iraq War.
The U.S. has spent nearly $26 billion since 2003 on training Iraqi military forces and police and rebuilding the justice system. The newest war in Iraq against the Islamic State will cost an estimated $15 to $20 billion, according to Mother Jones.
After the fake soldiers were discovered, the 50,000 jobs - equivalent to nearly four full army divisions - were immediately cut, according to an Iraqi parliament statement.
Abadi's spokesperson, Rafid Jaboori, said the investigation first began with a thorough headcount during the latest payment process.
One experienced Iraqi officer told AFP, "There are two kinds of 'fadhaiyin,'" which literally translates to "space men," and refers to the fictitious soldiers on the payroll.
"The first kind: Each officer is allowed, for example, five guards. He'll keep two, send three home and pocket their salary or an agreed percentage. Then, the second and bigger group is at the brigade level. A brigade commander usually has 30, 40 or more soldiers who stay at home and don't exist," the officer said.
"The problem is that he too, to keep his job as a brigade commander, has to bribe his own hierarchical superiors with huge amounts of money."
The thousands of soldiers who defected or were killed this year in Iraq were rarely reported as such, explained the officer.
Several top military commanders have been fired or have retired since Abadi took office in September, said Jaboori, and Sunday's announcement suggests that an attempt to further legitimize Iraqi forces, and clean up after his predecessor, is underway.
"Haidar al-Abadi is setting integrity, efficiency and courage as the criteria to appoint a new military leadership," Jaboori said. "This weeding out process will extend beyond the military to all state institutions."