BHP Billiton could face Iraq bribery charges

By Sundeep Tucker 
February 3, 2006
The Financial Times
Original Source: http://news.ft.com/cms/s/bd3a6946-947e-11da-9f39-0000779e2340.html

BHP Billiton, the world’s largest diversified mining company, could face criminal charges relating to Australia’s Iraq oil-for-food bribery scandal, after the head of the official inquiry demanded extra powers to investigate what role it played in the affair.
Commissioner Terence Cole is investigating A$300m in kickbacks paid by AWB, the country’s monopoly wheat exporter, to Saddam Hussein’s regime to secure lucrative wheat sales. The terms of the inquiry permit the judge to consider criminal activities in relation to AWB and two other small Australian firms.
However, on Friday Mr Cole said that he would ask the government to expand his terms of reference to include BHP Billiton. He is investigating a deal involving a multi-million dollar wheat shipment funded by the miner in 1996 which might have contravened United Nations sanctions against the Iraqi regime.
The inquiry began in Sydney three weeks ago and has already heard startling allegations suggesting that AWB employees knew of the huge bribes. Lawyers have also provided documentary evidence, including letters to AWB from John Howard, prime minister, which has implicated officials working at the Department for Foreign Affairs and Trade.
Chip Goodyear, BHP Billiton chief executive, said on Friday that the company’s inclusion in the inquiry’s terms of reference would be an opportunity to ensure “all the facts surrounding BHP’s financing of a 1996 shipment of grain to Iraq would be aired publicly”.
He added: “While you never like to see your company mentioned in a controversy like this, as we have publicly stated, we are committed to investigating the facts and being transparent in the reporting of the results.”
“The shipment in question took place more than 10 years ago and many of the people involved have since left the company. We have already committed significant resources towards establishing the facts and look forward to fully co-operating with the inquiry.”