The managing director of a company in Great Britain, which developed bomb detectors has been arrested after an investigation by the BBC discovered that the device does not work.

ATSC's Jim McCormick sold the detectors in 20 countries, including Iraq. The Iraqi government invested more than 80 million in the detectors, which cost 40,000 dollars a piece.

It is feared that hundreds of people may have lost their lives as a result of bombs which were not detected.

The British government has stopped sales of the bomb detector to Iraq and Afghanistan. As of Monday the device will be subject to an export ban.

The product has not been sold to other Western countries.

Photo: Bomb attack in Baghdad - EPA