Australia trade minister ‘not aware’ of Iraq bribe

By Lachlan Colquhoun 
April 10, 2006
The Financial Times
Original Source: http://news.ft.com/cms/s/7b486d0e-c87b-11da-b642-0000779e2340.html

Australia’s trade minister, Mark Vaile, was “pretty well snowed under” learning his new job and had not seen any of 21 diplomatic cables sent to his office outlining allegations about kickbacks paid by the Australian Wheat Board in Iraq, an inquiry into the affair was told on Monday.
Mr Vaile, who on Monday became the first Australian minister in a decade to give evidence at a government-appointed commission of investigation, appeared before the Cole inquiry into how around A$300m (US$218m) allegedly passed from AWB to the regime of former Iraqi leader Saddam Hussein through Jordanian trucking company Alia.
Mr Vaile, whose appearance is to be followed by that of the foreign minister, Alexander Downer, and also possibly Prime Minister John Howard, was questioned over a 16-page statement tendered to the enquiry on Friday in which he said he was not told about allegations concerning AWB and Alia until March 30, 2004, when the United Nations announced its own inquiry into the oil-for-food programme.
He said he had trusted AWB as a “respected” Australian company and had no reason to disbelieve its assurances on the kickback allegations until the UN Volcker report was released last year.
In his evidence, Mr Vaile, who is also deputy prime minister, used the words “do not recall” more than 20 times, under questioning from senior counsel John Agius.
Asked by Mr Agius if he believed cables on the AWB allegations should have been shown to him, Mr Vaile said: “In the context of this inquiry… I must admit I was surprised that it hadn’t been brought to my attention.”
Mr Downer is due to appear before the inquiry on Tuesday and Mr Howard confirmed on Monday he would provide a written statement, which could also lead to him being called to give evidence.
Mr Howard maintained his public stance that neither he nor any of his ministers had acted improperly over the affair, despite comments from Felicity Johnston, the chief customs officer at the UN’s oil-for-food programme office for four years to November 2003, that she had raised the kickback allegations with an Australian government representative as long ago as early 2000.
Speaking to the Australian Broadcasting Corporation, Ms Johnston said the representative – former department of foreign affairs and trade officer Bronte Moules – had subsequently denied the conversation.
“That what I perceive to be an agency of that government would be deceptive and would be deliberately flouting the sanctions and then avoiding telling the truth about the matter was really incomprehensible,” Johnston told the ABC.
“I simply just could not have believed that the AWB would have behaved in this manner.”