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Australian Government Crest

Report of the Inquiry into certain Australian companies in relation to the UN Oil-for-Food Programme

Volume 4

Findings

Commissioner
The Honourable Terence RH Cole AO RFD QC

November 2006


© Commonwealth of Australia 2006

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney General's Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca

Report of the Inquiry into certain Australian companies in relation to the UN Oil-for-Food Programme

ISBN
Volume 1 0-9803082-0-8
Volume 2 0-9803082-1-6
Volume 3 0-9803082-2-4
Volume 4 0-9803082-3-2
Volume 5 0-9803082-4-0
CD-ROM 0-9803082-5-9

www.oilforfoodinquiry.gov.au


Contents

29 The Wheat Export Authority. 1

The history of the WEA's involvement with AWB Limited.. 2

The August 2001 market brief 2

The October 2002 market brief 2

The November 2002 market brief 4

The April 2003 market brief 5

Late 2003: responding to 'kickback' reports. 5

WEA requests. 6

The May 2004 briefing note. 7

A joint meeting of the Boards. 8

The August 2004 briefing paper. 8

Inspection of contracts. 9

The AWBI Board meeting on 14 December 2004. 13

The WEA Board meeting on 7 April 2005. 14

Conclusion.. 15

Possible offences. 17

30 The knowledge of the Commonwealth.. 21

Circumstances in which the knowledge of the Commonwealth may be material 21

Did AWB ever tell DFAT about the inland transportation fee arrangements?. 27

Did AWB ever tell the Prime Minister or the Ministers for Foreign Affairs and Trade about the inland transportation fee arrangements?. 46

Did DFAT obtain the relevant knowledge from any other source?. 48

Did the Prime Minister or the Ministers obtain knowledge from sources other than AWB? 87

Conclusion and summary. 100

31 Findings: AWB and associated persons. 109

Offences involving bribery or secret commissions. 109

Offences involving money laundering. 109

Offences relating to terrorism... 110

Offences under the Banking (Foreign Exchange) Regulations. 113

The Customs (Prohibited Exports) Regulations. 113

The Corporations Act 113

Corporate responsibility. 114

Was the Commonwealth misled?. 118

Did AWB mislead the United Nations?. 120

Referral 122

Possible offences by persons associated.. 200

The Banking (Foreign Exchange) Regulations. 317

Taxation offences. 322

32 Findings: Alkaloids of Australia Pty Ltd.. 329

Statement of facts. 329

Issues and findings. 343

Conclusion.. 345

33 Findings: Rhine Ruhr Pty Ltd.. 351

Statement of facts. 351

Issues and findings. 374