After viewing evidence at the Cole inquiry, wheat exporter AWB...

After viewing evidence at the Cole inquiry, wheat exporter AWB has withdrawn a statement issued to the Australian Stock Exchange this afternoon.

AWB paid $290 million in kickbacks to Saddam Hussein's regime under the Iraqi oil-for-food program.

An inquiry headed by Terrence Cole is examining whether those payments breached laws that gave effect to UN sanctions against Iraq.

The statement issued by AWB said a United Nations inquiry into the oil-for-food scandal found the program had become a conduit for funds to the Iraqi government.

But it said AWB did not directly transfer funds to Saddam's regime.

"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," the statement said.

AWB's managing director Andrew Lindberg was shown the statement during hearings at the inquiry in Sydney today.

Mr Lindberg was then shown a letter written in February 2001 by an AWB employee and addressed to the head of a Jordanian transport company.

The letter asked why AWB funds had not been forwarded to Iraqi state agents.

Mr Lindberg was asked whether he still believed AWB did not know it was paying money directly to Iraqi authorities.

He said he recognised that in view of the evidence he would consider correcting the statement.

Counsel for AWB then told the inquiry that AWB had withdrawn its statement to the Australian Stock Exchange.

AWB shares finished the day down 25 cents to $5.75.

In other developments:
The Federal Opposition says there is enough evidence to suggest the Government turned a blind eye to illicit payments made by AWB to Saddam Hussein's regime. (Full Story)
An inquiry in Sydney has been shown a document that appears to show the wheat exporter AWB tried to hide payments from the United Nations that were being made to Iraq. (Full Story)

ABC Online