Iraq sues AWB for harming its people
Email Printer friendly version Normal font Large font Tom Allard National Security Editor
July 2, 2008
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IRAQ'S Government is suing AWB Limited, alleging it rorted the United Nations' oil-for-food program and caused "virtually incalculable" suffering for the Iraqi people.
AWB is one of 94 companies named in the lawsuit filed in a United States court, which is seeking billions of dollars in damages and alleges the firms formed a conspiracy with the former dictator Saddam Hussein to reap economic benefits at the expense of Iraq's population.
A judicial inquiry set up by the Howard government and headed by Terence Cole QC found in 2006 that AWB paid Saddam's regime more than $220 million in kickbacks in exchange for wheat sales.
An earlier inquiry by the former US Federal Reserve chairman Paul Volker found AWB was the biggest participant in the oil-for-food program, a United Nations initiative to allow Iraq to buy food and humanitarian supplies in exchange for oil.
However, due to the rorts, billions of dollars were illegally funnelled to Saddam and his supporters, the lawsuit says.
"Billions of dollars were lost, all of which were directly translatable into food, medicine and other humanitarian goods that were supposed to reach the Iraqi people," the Iraqi Government said in court documents.
"The resulting damage in human suffering caused to the Republic of Iraq and to the people of Iraq is virtually incalculable."
AWB, the monopoly wheat exporter formerly owned by the Government, paid the largest bribes of any company involved in the program, the Iraqi Government said. As such, it could be liable for the largest penalties should the court case - launched under US anti-racketeering laws - succeed.
Other companies named in the lawsuit include the European Bank BNP Paribus, drug-makers GlaxoSmithKline and Roche Holdings and the Swiss engineering group ABB Group.
An AWB spokesman said it would "vigorously defend its position if the case proceeds". The lawsuit follows legislation last month stripping AWB of its right to operate as a "single desk" selling all of Australia's wheat on the world market.
The company's share price rose 5c yesterday to $2.46.
http://www.smh.com.au/news/world/iraq-sues-awb-for-harming-its-people/2008/07/01/1214678038469.html
Email Printer friendly version Normal font Large font Tom Allard National Security Editor
July 2, 2008
Advertisement
IRAQ'S Government is suing AWB Limited, alleging it rorted the United Nations' oil-for-food program and caused "virtually incalculable" suffering for the Iraqi people.
AWB is one of 94 companies named in the lawsuit filed in a United States court, which is seeking billions of dollars in damages and alleges the firms formed a conspiracy with the former dictator Saddam Hussein to reap economic benefits at the expense of Iraq's population.
A judicial inquiry set up by the Howard government and headed by Terence Cole QC found in 2006 that AWB paid Saddam's regime more than $220 million in kickbacks in exchange for wheat sales.
An earlier inquiry by the former US Federal Reserve chairman Paul Volker found AWB was the biggest participant in the oil-for-food program, a United Nations initiative to allow Iraq to buy food and humanitarian supplies in exchange for oil.
However, due to the rorts, billions of dollars were illegally funnelled to Saddam and his supporters, the lawsuit says.
"Billions of dollars were lost, all of which were directly translatable into food, medicine and other humanitarian goods that were supposed to reach the Iraqi people," the Iraqi Government said in court documents.
"The resulting damage in human suffering caused to the Republic of Iraq and to the people of Iraq is virtually incalculable."
AWB, the monopoly wheat exporter formerly owned by the Government, paid the largest bribes of any company involved in the program, the Iraqi Government said. As such, it could be liable for the largest penalties should the court case - launched under US anti-racketeering laws - succeed.
Other companies named in the lawsuit include the European Bank BNP Paribus, drug-makers GlaxoSmithKline and Roche Holdings and the Swiss engineering group ABB Group.
An AWB spokesman said it would "vigorously defend its position if the case proceeds". The lawsuit follows legislation last month stripping AWB of its right to operate as a "single desk" selling all of Australia's wheat on the world market.
The company's share price rose 5c yesterday to $2.46.
http://www.smh.com.au/news/world/iraq-sues-awb-for-harming-its-people/2008/07/01/1214678038469.html
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