Newsmaker

Australian PM denies Iraq bribes cover-up

(AFP)
Updated: 2006-11-27 11:15

The UN inquiry, led by former US federal reserve banking chief Paul Volcker, reported in October 2005 that AWB was the biggest offender among some 2,000 companies worldwide that were involved in corrupting the programme.

Howard, a close ally of US President George W. Bush, committed troops to the US-led invasion of Iraq and has faced opposition charges that the bribes paid enabled Saddam to buy weapons which were turned on Australian soldiers.

The inquiry heard testimony that the government received warnings from the UN, Canada, the United States and some of its own officials about AWB's corruption of the oil-for-food programme.

Howard and senior ministers told the commission they accepted AWB's denials and dismissed some of the warnings because they came from countries jealous of Australia's prominence in the lucrative Iraqi wheat trade.

AWB initially repeated its denials to the inquiry but Cole later published an admission of wrongdoing that the company had prepared and then decided against releasing.

The opposition Labor Party has dubbed the affair the "wheat for weapons scandal" and leader Kim Beazley has called for the resignation of at least two ministers.

One of his apparent targets, Foreign Minister Alexander Downer, Monday rejected Labor's charge that the inquiry's terms of reference prevented findings against the government.

"The terms of reference did give the commissioner the opportunity to establish whether the government had been working with AWB Limited, whether, as Beazley said, we were corrupt.

"Mr Beazley and (shadow foreign minister Kevin) Rudd have been saying that we have been lying. Their credibility will be put to the test today as well when the report is published."

Cole is expected to recommend charges against former AWB executives, including chairman Trevor Flugge and two former chief executives, Andrew Lindberg and Murray Rogers.

As many as 17 former senior executives of the company were reportedly named by counsel to the inquiry, John Agius, as open to possible civil and criminal action.