Last night a spokesman for defence firm
Aegis Defence Services - set up in 2002 by
Lt Col Tim Spicer, a former Scots Guards officer - confirmed that the company was carrying out an internal investigation to see if any of their employees were involved.
The Foreign Office has also confirmed that it is investigating the contents of the video in conjunction with Aegis, one of the biggest security companies operating in Iraq. The company was recently awarded a £220 million security contract in Iraq by the United States government. Aegis conducts a number of security duties and helped with the collection of ballot papers in the country's recent referendum
Lt Col Spicer, 53, rose to public prominence in 1998 when his private military company Sandlines International was accused of breaking United Nations sanctions by selling arms to Sierra Leone.
The video first appeared on the website www.aegisIraq.co.uk. The website states: "This site does not belong to Aegis Defence Ltd, it belongs to the men on the ground who are the heart and soul of the company." The clips have been removed.
The website also contains a message from Lt Col Spicer, which reads: "I am concerned about media interest in this site and I remind everyone of their contractual obligation not to speak to or assist the media without clearing it with the project management or Aegis London.