Govt felt ‘untouchable’ over AWB scandal

Notes from an AWB executive’s report back on meetings with the Federal Government last year show the Government thought itself “untouchable” over the oil-for-food scandal.

But today the Cole inquiry heard that the grains trader was very worried about the adverse findings it expected from a UN inquiry.

AWB’s former managing director Andrew Lindberg reportedly said the Federal Government feels untouchable on this because the US Government is not going to criticise the Australian Government.

At the June meeting, AWB was very worried that the former US Treasury head Paul Volcker would make adverse findings.

Foreign Affairs Minister Alexander Downer had noted that he was more relaxed than AWB was.

Mr Lindberg also reportedly said Mr Downer had said the grains trader could not be held responsible for where its money went after it was paid to Alia trucking in Jordan.

It is now known wheat contracts were inflated to pay Alia trucking, which passed money on to Saddam Hussein’s regime.

Commissioner Terence Cole is heading the inquiry investigating $300 million worth of payments made by wheat exporter AWB to the former Iraqi regime in contravention of UN sanctions against Iraq.

Meanwhile, the Federal Government has denied ordering the financial intelligence body Austrac not to assist a UN inquiry into Australia’s dealings with Iraq.

The Opposition has questioned why Austrac is helping the Cole inquiry into the alleged bribes AWB paid to Saddam Hussein, but did not assist the UN’s Volcker oil-for-food inquiry.

Justice Minister Chris Ellison says Austrac is only allowed to give information to Australian law enforcement agencies for privacy reasons.

“The Cole commission of inquiry is one set-up in Australia, and one which it can enter into an MOU [Memorandum Of Understanding] with, I did not instruct Austrac in anyway in relation to its dealings with the Volker inquiry,” he said.

“The decision in relation to the Volker inquiry was made by Austrac itself and was done within its legislative framework.”

http://abc.net.au/news/newsitems/200603/s1601875.htm