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The Wheat Bribe Affair (1 Viewer)

leetom

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Re: Wheatgate

transcendent said:
is that all? sounds like what any shrewd and opportunistic businessman would do, i know i would. the director of the AWB should've found himself a nice island to relax. i guess the Americans are getting worked up cause they couldn't get away with it.
thanks for the explanation and how it was related to the UN.
Shrewed and oppurtunistic but keeping in mind that it was illegal. The term 'sanction-busting' is not to be taken lightly. And considering that an Australian company was paying a regime that Australian troops would eventually end up fighting, serious questions of ethics start to be raised.

The Americans are getting worked up because some of that $300 million could well have been used in the purchase of arms to resist the occupation forces, and perhaps even continuing to fund the insurgency to date.
 

Enlightened_One

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I've been hearing about this whole affair for a lot longer than most. I first picked it up in the Land paper and it took a while for any city media to fully run with the story.
Anyway, according to what I heard on the radio recently, the AWB, in order to monopolise the market, offered to pay for the transort costs of the wheat. They paid money to an Iraqi trucking company that was a front for Saddam. The Canadian wheat Board found out and dobbed them in. This was a few years back (1999, I think). However, at the time the AWB managed a cover up which later came back to bite them in the arse.

The yanks are so taken with the inquiry because of Australia's position as a wheat exporter. They hope to ride the international backlash against Australia by gaining a firmer footing in the international market and destroying Australia's foothold. Or at least that's the way I see it.

Edit: I adjusted the post. Australia only exports 15% of the world's wheat.
 
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Generator

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Claims that Government would have known of AWB payments

Claims that Government would have known of AWB payments
AM - Saturday, 11 February , 2006 08:00:00
Reporter: Helen Vatsikopoulos



ELIZABETH JACKSON: It's been a big week at the Cole Inquiry, and a devastating few days for the Australian Wheat Board, with the resignation of the Managing Director Andrew Lindberg, and reports this morning that the Howard Government is finally committed to stripping the Board of its monopoly to export wheat.

As each day unfolds more evidence is given about alleged payments by the AWB to a Jordanian trucking company part owned by Saddam Hussein's regime.

The inquiry was set up by the Federal Government following the Volker report into the UN's Oil for Food programme, which found some 2000 international firms - including the AWB - paid bribes in the form of kickbacks to the Iraqi Government.

Several Australian Government Ministers have been named at the inquiry, including the Federal Trade Minister Mark Vaile, Parliamentary Secretary Bill Heffernan, former agriculture minister Warren Truss and an official from the Department of Foreign Affairs.

The Prime Minister and his Foreign and Trade Ministers have repeatedly denied any knowledge of money paid to the Iraqi regime by the AWB.

But a former intelligence officer says it was standard practice for larger Australian firms to pay kickbacks overseas, and that the Australian Government must have known about it.

Warren Reed worked for 10 years as an intelligence officer with the Australian Secret Intelligence Service, serving in Asia and the Middle East.

He told Asia Pacific's Helen Vatsikopoulos that it's part of standard intelligence gathering to keep track of major Australian firms operating in countries such as Iraq.

[...]

And you can hear the full interview with Warren Reed on Asia Pacific Focus on ABC Television at 11 o'clock on Sunday morning.
The Prime Minister, the Foreign Minister and the Trade Minister have all dismissed Mr Reed's comments, but the interview may still be of interest to some.

---

Edit: PM will not end AWB monopoly
 
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[QUOTE = Enlightened_One] The yanks are so taken with the inquiry because of Australia's position as a wheat exporter. They hope to ride the international backlash against Australia by gaining a firmer footing in the international market and destroying Australia's foothold. Or at least that's the way I see it. [/QUOTE]

Yeah I agree with the statement that the Americans are making a big show and dance about the whole AWB fiasco just so that they can have a bite out of Australia's international wheat market.

I also believe that this sort of bribery is unfortunately rather commonplace - which has been stated - and that it is used to get business for a particular company.

What interests me, but is entirely irrelevant, is that the US helped put the nutcase (Saddam) their in the first place - even with their posturing about 'democracy'.

This is however is all according to Wikipedia
 

Enlightened_One

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Jameswilmot2000 said:
Yeah I agree with the statement that the Americans are making a big show and dance about the whole AWB fiasco just so that they can have a bite out of Australia's international wheat market.

I also believe that this sort of bribery is unfortunately rather commonplace - which has been stated - and that it is used to get business for a particular company.

What interests me, but is entirely irrelevant, is that the US helped put the nutcase (Saddam) their in the first place - even with their posturing about 'democracy'.

This is however is all according to Wikipedia
No, the American govenment really did place Saddam in power after the first Gulf War.


What I'm annoyed about is that now the sacndal is hitting home. Farmers are facing financial trouble because the scandal has been Australian wheat into repute and countries are not going to trade with us. Given the size of our wheat industry this could hurt us economically. Not to mention that if we lose our wheat industry (through farmers selling up) we may never get it back.

And interestingly, despite most of Australia wanting to get rid of the single desk for wheat the Australian wheat farmers themselves preferred having only a single desk because it was easier.


Oh, and one more thing, it should be noted how heavily subsidised other countries wheat industries (including the US) are.
 

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Generator said:
Claims that Government would have known of AWB payments

The Prime Minister, the Foreign Minister and the Trade Minister have all dismissed Mr Reed's comments, but the interview may still be of interest to some.

The Australian - Spies knew of Iraq wheat 'bribes'
The Age - Spooks 'knew of payoffs'
Lateline - Inquiry told Australian intelligence knew about Iraq sanction breaches


Lateline - Inquiry told Australian intelligence knew about Iraq sanction breaches

Reporter: Michael Edwards

TONY JONES: Australia's intelligence agencies knew Iraq was breaking UN sanctions as far back as 1998 and that it was using a trucking company linked to AWB to do so. The information came to light at the Cole inquiry today as part of an intelligence summary. It said Australian intelligence knew Iraq was charging a commission on humanitarian goods by levying exorbitant transport fees. Labor says it's another link in the chain of evidence indicating the Government was aware of the kickbacks scandal much earlier than it has previously claimed. Michael Edwards has this report.

MICHAEL EDWARDS: It became evident earlier this week that Australia's intelligence community had provided documents to the Cole inquiry. A suppression order was granted, but Commissioner Terence Cole ordered a summary. Today, one was released. There were some explosive revelations: in 1998, Australian intelligence knew Alia Corporation was part-owned by Iraq and involved in UN sanction breaches; Alia was receiving fees for inland transport in Iraq in violation of sanctions; and that Iraq was charging a 10% commission on imported humanitarian goods. But the summary says no Australian companies were named. It actually included information that in November 2003, not all large companies were paying the extra fees. It cited Australian wheat imports as an example. But the Cole inquiry has heard repeated claims AWB was paying both kickbacks and illegal commissions to Iraq. The Australian Government has repeatedly stated intelligence agencies didn't gather any information relevant to the kickbacks scandal. The intelligence predates its denials by almost eight years.

TONY JONES ('LATELINE', FEBRUARY 16th) The last time we spoke you confirmed that the Government had never heard of the trucking company, Alia, before the Volcker inquiry. That's correct, isn't it?

ALEXANDER DOWNER, FOREIGN AFFAIRS MINISTER: Yes. When I say "the Government", I am, of course, including there the public servants. And so the Volcker inquiry was formally established in April, I think, 2004.

MICHAEL EDWARDS: The intelligence revelations have increased pressure on the Government about the kickback scandal. Labor says it's another link in the chain proving the Government knew more than it's admitting to. Also at the inquiry today, it emerged an Australian diplomat posted to DFAT's Middle East desk had heard of Alia: "I recognised the name and I now believe that it was a name I had used in the context, during the time I worked in the Middle East desk in 2000 and 2001." Jill Courtney's evidence is different to several of her DFAT colleagues who told the inquiry they'd also never heard of Alia until the Volcker inquiry. Jane Drake-Brockman was also on the Middle East desk. AWB executive Charles Stott earlier testified she had given the OK to use Alia: "He has claimed...DFAT was aware of Alia...and Alia is ok. I have never had any discussion with Mr Stott to the effect of the allegation." Ms Drake-Brockman denies she knew anything about Alia during her time on the Middle East desk. Another colleague, Don Cuddihy, also told the inquiry today he lacked the qualifications to check AWB's wheat contracts for sanction breaches. Michael Edwards, ABC News.
 
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banco55

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There is a bit of make believe to the whole thing. No Australian government was going to sacrifice one of our major agricultural exports even if that countries leader was eating children for breakfast. If AWB had been barred from selling wheat to Iraq in 96 or whenever we would never have heard the end of it from the Labour party and the farmers.
 

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AWB tricked the UN: Federal Court judge

AWB executives are almost certain to face criminal charges after the Federal Court ruled the Australian wheat exporter had "deliberately and dishonestly" conspired to defraud the UN.
In a decision that pre-empted the findings of the Cole inquiry, Federal Court judge Neil Young yesterday labelled some of AWB's deals with Iraq "improper" and "dishonest".

Justice Young said evidence he had reviewed in recent weeks established that at least one of AWB's transactions with the regime of Saddam Hussein was "deliberately and dishonestly structured by AWB and the Iraqi Grains Board so as to misrepresent the true nature and purpose of trucking fees and to work a trickery on the United Nations".

And Justice Young gave the Howard Government few reasons to continue its support for AWB's monopoly over bulk wheat exports, saying the company had, until January of this year, been "openly claiming that its legal advice showed there had been no evidence that it was engaged in any wrongdoing in connection with the supply of wheat to Iraq under the oil-for-food program".

"AWB made those claims to advance its commercial interests," Justice Young said.

He said AWB executive Peter Hargreaves had repeatedly told the Howard Government there was no evidence of corruption "as part of AWB's strategy to secure the continued support of the federal Government". [...]

Full Article - The Australian
AWB should have co-operated long ago

AWB Limited v Honourable Terence Rhoderic Hudson Cole (No 5) [2006] FCA 1234
 
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Records delay angers Cole

Records delay angers Cole
Marian Wilkinson and David Marr
September 29, 2006



COMMISSIONER Terence Cole reprimanded AWB and its lawyers yesterday for withholding from his inquiry crucial documents that reveal some AWB executives knew from the start they were funnelling illicit payments to Saddam Hussein's regime.

One email finally handed to the inquiry on Wednesday night shows a former AWB manager describing six years ago the need for AWB to "disguise" millions of dollars in "trucking fees" being passed onto the Iraqis in breach of United Nations sanctions.

The email from Mark Emons to the head of a London shipping agent, Ronly Holdings, reads: "It would be ideal from our point of view if we have a third party that handles the freight and trucking as an item. This not only saves us time but does disguise the fee."

Mr Emons said a previous firm used by AWB "ran scared of getting caught up in sanctions etc".

[continued - see link]
 

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16 may face charges in wheat scandal

UP TO 16 key AWB figures may face criminal charges over the Iraq kickbacks scandal if the commissioner, Terence Cole, accepts confidential recommendations put to him by senior counsel assisting his inquiry.

The Herald understands those named in the final submission by John Agius, SC, as possible accessories to offences involving dishonesty and deception include the current head of AWB International Ltd, Sarah Scales, the former AWB chairman Trevor Flugge and two former managing directors, Andrew Lindberg and Murray Rogers.

Also named as possible accessories are five current AWB managers, including the general manager of AWB's trading and commodities, Peter Geary, and three former heads of AWB's international sales and marketing division, which drove the Iraq wheat sales during Saddam Hussein's regime. They include Michael Long and Charles Stott.

Offences under the relevant legislation carry penalties of between one and 10 years' jail.

Mr Agius also recommends that Mr Cole finds that about a dozen AWB executives and managers may have breached the Corporations Act, including the company's current chief financial officer, Paul Ingleby, and in-house lawyer Rosemary Peavey and former in-house lawyer Jim Cooper.

The recommendations have been sent to lawyers for those adversely named. They have a fortnight to reply. Mr Cole will then decide which cases, if any, are referred to the Director of Public Prosecutions. Mr Cole's report is due to be handed to the Government on November 24.[...]
Full Article - The Sydney Morning Herald

Ministers escape blame for AWB scandal
 
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Ministers escape blame for AWB scandal

THE Howard Government and its officials will narrowly escape punishment for the AWB kickback scandal, with senior counsel to the Cole inquiry recommending no criminal charges against any federal cabinet minister, bureaucrat or official.
 

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Report of the Inquiry into certain Australian companies in relation to the UN Oil-for-Food Programme

Statement by the Attorney-General


PM, ministers cleared of wrongdoing
Cole recommends investigation into 12 people over AWB
Cole clears PM in bribes probe
The long-awaited report into Australia's biggest trade and corruption scandal - wheat exporter AWB's $290 million in kickbacks to Saddam Hussein's Iraq - has been released in Canberra.

The Cole report has cleared Prime Minister John Howard and senior ministers of any knowledge of AWB's payment of kickbacks to former Iraqi dictator Saddam Hussein's regime.

The report has also cleared the Department of Foreign Affairs and Trade (DFAT) of turning a blind eye to the $290 million in kickbacks paid by the wheat exporter under the United Nations' disgraced oil for food program.


"There is no evidence that any of the prime minister, the minister for foreign affairs, the minister for trade or the minister for agriculture, fisheries and forestry were ever informed about, or otherwise acquired knowledge of, the relevant activities of AWB,'' Mr Terence Cole said in the report tabled in federal parliament today.

It has recommended 12 people - all but one of them former AWB staff - be investigated by a new taskforce for possible criminal and corporations offences over the Iraq kickbacks scandal.

Commissioner Cole has recommended a joint taskforce be set up to investigate the alleged offences, including Australian Federal Police, Victoria Police and the Australian Securities and Investments Commission.
The taskforce should consider "possible prosecutions in consultation with the Commonwealth Director of Public Prosecutions and Victorian Director of Public Prosecutions'', Mr Cole said in his report.

Mr Cole names 11 former AWB executives to be referred to the taskforce for investigation, including former chairman Trevor Flugge, former chief executive Murray Rogers and former chief financial officer Paul Ingleby.
[...]
 
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yeah, so Cole reckons they (the government) didnt know, and maybe they didnt, but doesnt that in itself raise questions, WHY didnt they know, they damn well should have
 

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