An exiled Iranian terrorist group called MEK is probably the source of the discredited stories of Iranian involvement in IEDs in Iraq.
One of the major obstacles to American foreign policy in the Middle East is our lack of what is called “human intelligence,” by which is meant “people who can and will give us information about what’s going on.” In other words, we are largely “blind.” What one-eyed man stepped in to give us information about Iraq? well, there were actually two major sources, only one of whom, Ahmed Chalabi, wanted to be king. Chalabi and his band of Iraqi exiles purported to have all sorts of damning information about Saddam’s weapons programs, his ties to al-Qaeda, and the degree to which Americans would be greeted with flower petals spread in the streets. The other one-eyed man who led us astray on Iraq was a crazy man who initially told his stories of WMDs to the Germans, who gave him the code name “Curveball.” In spite of the fact that German intelligence considered him deranged and unreliable, his stories, like those of the opportunist Chalabi, were “stovepiped” to the top of the US intelligence credibility pile, reportedly by the neoconservative warmongers at the very top of the US government.
The same thing is happening with Iran. There are two main one-eyed men; one is a “Curveball” wannabe named Ali, who will not be further discussed here. The other one-eyed man is the exiled Iranian terrorist (yes, US government certified terrorists) cult known as MEK, now based in Diyala province in Iraq. MEK has been seen by the Bush administration since 2003 as a fine tool to use against Iran, in spite of the fact that US support of the MEK cost us the invaluable support and cooperation of Iran against al-Qaeda.
Iran offered to take “decisive action against any terrorists (above all, al-Qaeda) in Iranian territory.” In exchange, Iran wanted the U.S. to pursue “anti-Iranian terrorists”—i.e., the MEK. Specifically, Iran offered to share the names of senior al-Qaeda operatives in its custody in return for the names of MEK cadres captured by the U.S. in Iraq.
The MEK is probably the major source of the IED/ESP disinformation program which is being used to blame Iran for US casualties in Iraq.
U.S. officials have said that attacks with such weapons increased 150 percent in the past year. But a review of bombings by location shows that less than 10 percent of attacks that killed at least two American service members in the past 14 months were in areas where Shiite militias are dominant.
Nonetheless,the Bush administration continues to try and push this propaganda:
U.S. military officials point to the discovery of a weapons cache in a Shiite village near Baqouba, about 40 miles from Baghdad, as the latest evidence that Iran is supplying Shiite militants with weapons.
Their claim, however, is happy horseshit:
During late 2006, however, Baqubah and much of Diyala province were reported to have come under Sunni insurgent control.  On January 3, 2007 the previous Iraqi government in Baquba was reported to have fallen, leaving the city in the hands of insurgents fighting against the American led coalition in Operation Iraqi Freedom.This insurgent control is reported to have continued as of early 2007. In January 2007, it was reported  that Sunni insurgents were able to kidnap the mayor and blow up his office, despite promises from American and Iraqi military officials that the situation in the city was “reassuring and under control”. The city at its peak had over 300,000 residents, but a February 2007 report labeled the city a “ghost town” as residents either fled criminal and sectarian violence or remained in hiding at home. 
The recently discovered cache of weapons in Diyala province should be viewed with great suspicion. The Mojahedin-e Khalq or MEK base is in Camp Ashrafiya in that province, and they have been boasting in Washington of having had a great success in convincing the US military that the Explosively Formed Projectiles came from Iran. Yeah, and they are likely the ones importing them. MEK is a manipulative cult that wants to get up a war between the US and Iran, and is linked in with the Neoconservatives.
The MEK is making fools of us in front of the world. Even a few naive reporters have within a few minutes been able to discredit the lies that the US military has accepted as God’s truth. Even worse, Bush and his neoconservative handlers are trying to use this stuff to create a cause, or just an excuse, for war.
The idiocy is astonishing. This is one of the many reasons why Bush’s noted inability to admit mistakes is so important: he’s making the same damned ones over again.
[to see previous posts in this series beginning at x-40 days, click category "Countdown to attack on Iran," at right. ]