Payoffs link to terrorism
David Marr
October 6, 2006
The Sydney Morning Herald
Original Source: http://www.smh.com.au/news/national/payoffs-link-to-terrorism/2006/10/05/1159641464889.html
AWB's kickbacks to Saddam Hussein may have financed terrorism, according to the final, confidential submission of counsel assisting the Cole inquiry into the oil-for-food scandal.
This is one of many damning conclusions contained in the 1300-page submission by John Agius, SC, being examined by lawyers representing AWB and more than a dozen of its past and present managers and directors.
Mr Agius is understood to conclude that AWB misled the Federal Government and the United Nations, and that key AWB figures may have committed criminal and corporate offences in paying kickbacks to Saddam's regime in breach of UN sanctions.
The submission singles out for criticism the former chairman, Trevor Flugge, and the former managing director, Andrew Lindberg. But it also makes adverse findings against the AWB managers who first set up the kickback scheme, which funnelled almost $300 million to Iraq disguised as trucking fees.
Mr Agius has also made adverse findings against former and current officials of the Department of Foreign Affairs and Trade. The department's lawyers have been given access to the submission but have apparently not yet informed the individuals concerned.
The submission by counsel assisting makes findings of fact based on nine months of evidence gathered by the inquiry. It also identifies possible breaches of state and Commonwealth laws.
Almost from the start, the Cole inquiry signalled its belief that AWB and its managers may have breached the Commonwealth Criminal Code involving fraudulent conduct, the making of false or misleading statements and obtaining property or financial advantages by deception.
While the trucking fees involved some hundreds of millions of dollars, it is understood the toughest criticism from Mr Agius involves the $US8 million Tigris transaction. Evidence before the Cole inquiry revealed that AWB executives and the head of Tigris Petroleum, Norman Davidson Kelly, siphoned $US8 million from the UN Food Fund. This was part of an old deal designed to help BHP gain access to a huge new oil field in Iraq. Lawyers for BHP-Billiton are currently examining
Mr Agius's submission for any adverse findings against present and former BHP executives, including the elusive Mr Davidson Kelly.
Despite spectacular failures of memory in the witness box, Mr Agius does not appear to have included prosecutions for perjury among his recommendations.
By now, lawyers for all those whose reputation may be adversely affected by the commissioner's findings have heard from Mr Agius. This does not mean criminal charges will necessarily follow.
Nor do conclusions by Mr Agius that AWB and its managers may have committed breaches of the law mean that Commissioner Terence Cole will necessarily recommend prosecution. May have is only a finding of possibility.
The lawyers have only a fortnight to reply to Mr Agius's findings. It is understood they will rely heavily on claims that the conduct of AWB and its managers during the oil-for-food program was not misleading because both the Commonwealth and the UN knew about the trucking fees and turned a blind eye to any breaches of sanctions.
Mr Cole's final report, once due no later than March 31, will now be delivered by November 24.