Panorama covered this story 5 years or so ago.
As an analysis of how government procurement processes can go wrong, it was a 'perfect storm'.
There was one (repeat ONE) demonstration of the device, to impress the bigwigs (of each respective country); orders were placed and every civil servant down the line was basically powerless to question higher authority, once they had personally twigged that it was a scam.
The export orders were a huge moneyspinner, so the DTi were particularly keen for the story not to get out.