Australia wheat board Iraq 'kickback' chairman in court| MENAFN.COM

Sunday, 05 February 2023 11:38 GMT

Australia wheat board Iraq 'kickback' chairman in court


(MENAFN- The Peninsula)

Melbourne:The former chairman of an Australian wheat firm that allegedly paid sanctions-busting bribes to secure UN oil-for-food programme contracts in Saddam Hussein's Iraq appeared in court Monday more than a decade after the scandal erupted.

Trevor Flugge is facing a civil case by corporate regulator the Australian Security and Investment Commission (ASIC) of breaching his duties as a company director.

The AWB formerly Australia's monopoly wheat exporter allegedly paid Saddam's regime some US$225 million in bribes to secure lucrative grain deals with Iraq between 1999-2003 under a UN oil-for-food scheme.

Iraq's government suspended business with AWB in 2006 after its role in the scandal was confirmed by an official Australian inquiry that saw the then prime minister John Howard called as a witness.

Two former AWB executives were previously fined over their role in the scandal but police dropped a criminal investigation in 2009 after an independent review of the evidence found there was little prospect of a successful prosecution.

ASIC is now seeking to prove that Flugge knew or ought to have known about the scheme.

"As chairman of the board of this company Mr Flugge could have done many things which would have put an effective end to what occurred" ASIC counsel Norman O'Bryan said as he outlined how the kickbacks were hidden within AWB contracts with the Iraq grain board.

He added that unknown to Australia's international competitors AWB accepted a lower price for its wheat and the secret payments effectively handed currency to an Iraqi government desperately in need of all the international money it could get.

AFP


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.

Newsletter