iraq scandal costs surge

AWB's Iraq scandal costs expected to surge

Wednesday, 06/09/2006

A new estimate predicts AWB's legal costs and fines associated with the Iraq wheat scandal could surge to $280 million.

Sharemarket analyst Austock says possible legal action by North American farmers and Australian shareholders, and potential fines from the Australian Tax Office and the Australia Federal Police will affect costs.

But lawyers representing North American farmers, estimate their claim alone will cost the wheat exporter $1 billion.

Atlanta lawyer Rodney Edmund says growers want to make AWB accountable for its actions.

''We're working with lawyers in Australia. We're working with lawyers in Washington DC," he said.

"Quite frankly we have lawyers in New York right now who are quite frankly ready to take a bite into this thing and obviously the only way to go up against a global, world renowned company is to have multiple multiple resources at hand doing literally a wolf pack attack on this rogue company."

AWB believes such action is ill-conceived and it will not comment on speculation about future costs.

ABC Rural News