awb statement misleading

AWB statement 'misleading'

January 18, 2006
WHEAT exporter AWB may have misled the Australian Stock Exchange by issuing a statement today that contradicted evidence before an official inquiry about its involvement in the Iraq kickbacks scandal, the inquiry has been told.

The statement to the ASX, released this afternoon, has landed AWB in hot water at the Commission of Inquiry investigating the affair, in which $300 million of the company's money was pocketed by dictator Saddam Hussein.

AWB's statement to the exchange, in the name of managing director Andrew Lindberg who is in the witness stand, said: "AWB itself did not make payments to the Iraqi government."

"Even though no one, to our knowledge, can be sure where the money went, AWB is deeply concerned at the possibility that any of it may have been used for non-humanitarian purposes."

Commission senior counsel John Agius SC said that statement, and others, could be misleading because they contradicted evidence given to the commission since it began three days ago.









When questioned about the accuracy of the statement, Mr Lindberg said he had not misled the ASX.

"They (those statements) are not designed to be misleading. I don't believe they are," he told the inquiry.

Mr Agius and the head of the inquiry, Terence Cole, took serious issue with the statement.

Mr Cole said the statement to the ASX was the one Mr Lindberg gave to the Commission of Inquiry last Friday before public hearings began on Monday.

But Mr Cole said the statement had changed in that time.

"That statement's been subject to some modifications in the last day or so," he said.

Despite it being a statement by him, Mr Lindberg told the inquiry he had not seen it.

"I hadn't seen it. There may have been some misunderstanding, I don't know," he said.

Evidence before the commission has shown that money AWB paid for phantom trucking services to a Jordanian company, Alia, was funnelled to Saddam's government and the company never actually provided any trucking operations.

The commission has also produced numerous documents showing AWB staff knew the money was going to the Iraqi government.

Mr Agius and Mr Cole today expressed disbelief about the statement in the ASX release that no one at AWB could be sure where the money went.

"We actually have the Iraqi bank records (showing where the money ended up)," Mr Cole said.

Mr Agius then produced a letter from AWB chartering officer Coral Allen to Alia, relating to the payment of $US592,000 by the wheat marketer.

"Please advise urgently if these funds have now been forwarded onto state agents," the document said.

After further questioning from Mr Agius, Mr Lindberg still seemed unsure of the final destination of AWB's money before finally admitting: "Your interpretation is a reasonable one. I don't know what other interpretation could be put on it."

Mr Lindberg said he would take advice about the ASX statement and would have it corrected if necessary.

After a short adjournment AWB's barrister, James Judd, QC, said the ASX statement had been withdrawn.

"The exchange has been notified that the notice was not authorised and has been withdrawn," he told the inquiry.

The inquiry continues.