John Agius, counsel assisting the Cole inquiry into the Australian Wheat Board (AWB) payment of kickbacks to the Saddam Hussein regime in Iraq, has reportedly recommended criminal charges against up to 16 AWB executives and board members. Among those expected to be charged are the memory impaired twins, Andrew Lindberg and Trevor Flugge, and a bunch of others who were supporting cast members at the inquiry.

The Cole inquiry spent more than nine months investigating whether AWB paid almost $300 million in kickbacks to Saddam’s regime in breach of United Nations sanctions. The payments, disguised as trucking fees, helped secure wheat contracts for AWB under the UN’s oil-for-food program in Iraq.

The possible criminal offences under both Commonwealth and Victorian legislation arise if Mr Cole finds AWB’s managers and executives deliberately deceived the Government and the UN over the kickbacks. Mr Agius argues in his final submission that the senior AWB officers responsible for the elaborate kickbacks scheme “intentionally and dishonestly” deceived both the Department of Foreign Affairs and the UN over the kickbacks, and describes the
department as an “innocent agency” in helping to perpetuate the deception with the UN. Other possible offences by AWB include breaches of the terrorism financing laws and the money laundering provisions of the Reserve Bank regulations. It appears no individual officers have been named as possibly breaching the terrorism laws, only the company.

Of course, against the background of the disgraceful behaviour of AWB, the National Party cheer squad is saying it would be disappointing if AWB figures are charged after the Cole inquiry. Federal Trade Minister, Warren Truss, said:

“Well, obviously everyone will be disappointed if there are in fact proven allegations of wrong practice,”

Mr Truss is also confident the Federal Government has no case to answer over AWB’s kickbacks. He goes on to say:

“I’m confident that the Australian Government has done all it possibly can. I think that the evidence that’s put before the commission demonstrates that ministers have always acted responsibly, there’s very limited knowledge made available to government ministers,”

Of course there is a big gap between the government acting “properly” and having handled it competently. The fact that the AWB went out of its way to muddy the waters, that DFAT and Trade seemed to be out of their depth in understanding things they were supposed to have a role in overseeing, that officials who might have thought something fishy was happening just didn’t want to know, so they wouldn’t have to tell their Ministers who certainly wouldn’t have wanted to be blessed with some actual knowledge of the inconvenient facts, does not point to competence at all. In my view, acting properly covers acting responsibly and competently … not just weaseling out on a narrow legal definition. (”I did not have sex with that woman” comes to mind here).

I was also fascinated by Mr Truss’ flippant view of the seriousness of the findings on the AWB’s actions:

“Fortunately or unfortunately, we don’t have much wheat to sell this year and so that task won’t be very difficult.”

I hope the government and AWB board remember that when it comes to salary review and performance bonus time next year. (Have a look at their annual report - you’ll see there’s a few million dollar men, and plenty of $500k plus executives there …. wonder how many of them came from the public service days on about $100-200k max and jacked their salaries up as the top priority following privatisation?)

Also remember the damage AWB’s make the sale at any cost attitude has done to Australia’s reputation as being clean of corruption.

Technorati Tags: AWB, Iraq, Andrew Lindberg, Trevor Flugge, Cole Inquiry, bribery, corruption, kickbacks, oil-for-food