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AWB hanky panky in Iraq

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    AWB hanky panky in Iraq

    Crusher;

    Did you see this?

    USW ALERTS STATE DEPARTMENT TO WHEAT MARKET IN IRAQ
    U.S. Wheat Associates, undeniably frustrated that U.S. wheat is being kept out of Iraq, raised concerns this week with Secretary of State Colin Powell in regards to Australian wheat sales to the United Nations Oil for Food (OFF) Programme. While UN officials had earlier stated their intention to carry out the AWB contract negotiated with Saddam Hussein’s regime, a news release issued this week by the UN World Food Programme indicated that OFF food contracts were being renegotiated.

    The text of the letter, sent on June 3, follows:

    Dear Mr. Secretary:

    The recent announcement on the renegotiating of contracts under the Iraq Oil-For-Food (OFF) program raises several important issues for the United States. We are particularly concerned as to whether old wheat contracts with the Australian Wheat Board (AWB) are or have been included in this exercise.

    • Will these renegotiated contracts be at current market prices or at earlier prices that were undoubtedly inflated? Earlier OFF wheat contracts with prices inflated by millions of dollars per shipload have provided foundation to the rumors that some of the excess may have gone into accounts of Saddam Hussein’s family.

    • Will there be competitive bidding on the renegotiated contracts such as wheat or will one’s previous position as a supplier determine who gets the business?

    • Will there be transparency on the renegotiated contracts including information on the prices and quality of the commodities? Making this information public will encourage competition and help ensure that prices are in line with the commodity provided.

    The U.S is providing most of the funding for the WFP feeding effort, so possible price gouging for Australian wheat — regardless of whether it’s through OFF or WFP — is appalling. We certainly support all efforts to see that the Iraqis do not go hungry, but there is no reason for the U.S. to pony up funding if the Australians continue to overcharge for such a basic commodity. The U.S. must require open bidding and complete transparency in the process.

    We urge that you direct your staff involved in WFP and OFF contract approvals to be alert to these issues and to inform themselves on the going prices for these commodities.

    AUSTRALIAN MONOPOLIST EMBEDDED IN IRAQ
    On April 3, Australian Agriculture Minister Warren Truss said that the Australian government and the AWB were working to ensure that Australia’s position in the Iraqi wheat market was maintained. A couple days later, Australian Foreign Minister Alexander Downer told the press that Secretary Powell had assured him that Australia would be given responsibility for the Iraqi agricultural sector. On April 15, U.S. Wheat Associates officials told the State Department that “the U.S. cannot cede to Australia control of grain purchases, or ANY role that exerts undue influence on wheat purchases.”

    Now, according to a Pentagon spokesman, former AWB chairman Trevor Flugge is the senior advisor to the Iraq Ministry of Agriculture. As such, he is responsible for ensuring food security and food supply, and is charged with selecting Iraqis to head ministerial offices. He has veto power over policies and decisions. Dan Amstutz, who was selected by USDA as a “co-advisor,” has not yet been to Iraq.

    USW is not asking for special favors. As Alan Tracy, USW president, told officials at the State Department in April, “we need the strength and commitment of the U.S. government to ensure that the structure for fairness is maintained.” Iraq deserves no less than a system that encourages free and fair competition in an open market system, Tracy pointed out.

    Saddam kept U.S. wheat out of Iraq during the last years of his regime, while he agreed to deals with the AWB. Now, the AWB has “confidential” contracts for wheat sales under the OFF program, and the U.S. wheat industry is shut out from that process. Looking towards the future, Flugge -- a master monopolist -- is firmly embedded into the role that is determining the structure and process of Iraq’s wheat buying, and one assumes he’s trying to bring Truss’ pledge to fruition.

    All of this while the U.S. wheat industry is continually being told by Bush administration officials that it’s “too soon” to go into Iraq.

    USW had high hopes for Dan Amstutz, whose role is characterized by the Pentagon as “supra-ministerial,” and the organization still does. “We find it unacceptable that Secretary Veneman’s designated representative has not been welcomed by the military command in Iraq,” Tracy said. “And U.S. Wheat Associates is not prepared to accept Australian decision-making on wheat buying processes for the Iraqi people.”

    http://www.uswheat.org/marketnews.nsf/ceadd64dfe3b066985256abf005459ba/035b67c4599d9d3185256d3c005cfdad?OpenDocument

    Looks fishy to me...

    #2
    What is a "US Wheat Associate?" Sounds like another small special interest group whining to George B. I liked the part where they quietly mention military.

    Another side topic: what about Alberta cowboys still buying corn instead of homegrown barley. I'm all for substitution, but on one hand their main market has been cutoff (for who knows how long), but they continue to import corn. If they are expecting some government support, the least they could do is buy some local product, so that I can make some money and pay taxes to cover off the bailout. Meanwhile I'll keep scratching my head trying to figure stuff out.

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      #3
      Just a comment that there is very little new US corn business being done in Alberta - feedlots have mostly switched to barley with the only corn that had been forward booked a long time ago being brought in. Current feed barley prices are well under landed corn - particularly in north central Alberta.

      Comment


        #4
        I see this on the June 24th DTN report;

        "U.N. Humanitarian Coordinator for Iraq Ramio Lopez da Silva said at a press conference at U.N. headquarters that U.N. officials would re-examine contracts in which a percentage had been reserved for "site services" because it is believed that under those contracts "money was going elsewhere"--a thinly veiled reference to rumors of kickbacks to Hussein and his family."

        THE ability of STE's to do kickbacks is well known, especially if the STE has monopoly powers.

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