If you analyse the article there is not one attributed quote from the MOD or other government dept. The only one is from an inquiry by Lieutenant Colonel Nicholas Mercer and is not really relevant.
I also find it quite surprising that an 'odd job man' living in the sort of totalitarian regime that ran Iraq would have a passport, and even more surprising that it ended up in the hands of the paper, once again in an unattributable manner. Frankly I've seen more convincing conspiracy theories than this story, and I suspect they may be being used by people who's only aim in life is to attempt to discredit the armed forces for propaganda purposes. I'll leave you to sort out who they might be.
By the way, my 'left wing' comment earlier referred to the papers extreme liberalism, not communism.