Investigation points to AWB’s role in kickbacks to Iraqi officials
An Australian government investigation strongly alleges that the Australian Wheat Board may have violated the United Nations’ oil-for-food sanctions against Iraq by paying Saddam Hussein’s government multimillion-dollar kickbacks to secure wheat deals.
According to press reports, AWB, which has a monopoly on Australian wheat exports, allegedly paid the Hussein regime as much as $222 million in kickbacks between 1999 and 2003 to secure wheat exports to Iraq.
In November 2005, AWB voluntarily agreed not to participate in the U.S. Department of Agriculture’s export credit program pending the outcome of the Australian government’s investigation. Australian government official Terrance Cole led the investigation.
“We closely monitored the Cole inquiry, and are reviewing the final report today,” said U.S. Agricultural Secretary Mike Johanns in a statement Monday. “While I understand that the government of Australia intends to pursue criminal proceedings in this case, I have directed that USDA resume the debarment process.”
AWB has not participated in USDA programs since fiscal 2004, Johanns noted.
According to a Reuters news report today, U.S. Wheat Associates, a large wheat lobby, may take legal action against AWB. The group is concerned about how AWB may have exploited U.S. export credit programs.
If the AWB should fold, Reuters reported that a group of multinational grain shippers, led by the Australian Grain Exporters Association, said it’s ready to fill the void in the Australian wheat market. The association’s members include Cargill, Louis Dreyfus, Noble Group, Bunge, Toepfer and Glencore.
Investigation points to AWB’s role in kickbacks to Iraqi officials
