The Biggest Scandal of Food for Oil Sanctions in Iraq
November 28th 2006 11:02
The Biggest Scandal of Food for Oil Sanctions in Iraq
The UN food for oil sanctions against Iraq were put in place to stop Saddam Hussian from rebuilding his armed forces and to limit his ability to build weapons of mass destruction. Whether it was the right tactic or the wrong tactic was made mute after the Coalition of the Willing invaded. At the time of the sanctions the ordinary Iraqis were put under extreme hardship and had to do without things like basic medicines. Yet as the sanctions were being enforced by a UN land and sea blocked secret deals were being done to get around these sanctions. Those deals were in direct violation of the UN sanctions and ensured that over $300 million dollars in kickbacks went directly to Saddam Hussain. The culprit of this funneling of cash was the AWB (The Australian Wheat Board). The AWB is legislated to be the monopoly that controls all wheat sales out of Australia.
The size of this scandal and vast amounts were being funneled through a Jordanian trucking company that took the kickbacks in for Saddam. The publicity of this scandal came to the scrutiny of the public after the invasion of Iraq by the coalition. At first there was denial by the Australian government that the AWB, a major company in Australia could ever do such a thing. In essence the AWB were being accused of paying Saddam Hussian bribes so that he would buy Australian wheat. Yet as more news of the scandal broke there were calls for a Royal Commission by the opposition. Instead of a Royal Commission with the powers to find who was involved and who knew about the kickbacks the Howard government decided to have an enquiry with limited powers of investigation. This was called the Cole Commission and was given the power to investigate any wrong doing by the AWB and its executives only. There was no power to investigate Australian government minister or its senior public servants. Commissioner Cole was limited to investigate only the AWB wrongdoing, leading to accusations that the commission was designed as government white wash.
The findings of the Cole Commission were tabled in the Australian Federal parliament yesterday after question time. This is against the normal convention of tabling reports before question time and may indicate a political maneuver. The report itself paints a sordid picture of the operation of the AWB and its culture of dishonesty. It appears that senior executives of the AWB may be charged with a range of criminal offences. Bribes were paid in the form of kickbacks and the money was being used to buy weapons for Saddam as Australia, the UK and USA planned to engage in an invasion. By any stretch this seems like an insane situation of paying for the enemy to buy weapons to shoot at your own soldiers.
What is of significance is what the Cole Commission left off it’s report, things that it had no power to investigate or pursue and perhaps no willingness either. The Australian government and its public servants that were responsible for ensuring that the UN sanctions were not broken were never fully investigated. The Prime Minister is quick to use the Cole Report as evidence that his government had done nothing illegal. Yet since it set up the commission, decided its terms of reference and chose the commissioner there could always be the accusation of a stitch up. The opposition has already accused John Howard of designing a commission that could never find fault with his party. If these accusation of trying to avoid scrutiny had no substance then they would have a very short life. Yet there are too many indications that implicate the Australian government as either a knowing observer of the kickbacks or at least an incompetent guardian of there moral responsibility to investigate.
More than twenty warning were passed up the chain of command from public servants and military officers. It is baffling to understand how all these warnings were ignored or never passed to the minister for investigation. Foreign Minister Downer claims no knowledge of the scandal at the time. The baffling thing is why he was able to miss a $300 million scandal unless he was intentionally remaining ignorant; or his advisers were deceiving him; or they were incompetent. The price per tone of wheat was highly inflated and should have been cause for investigation as huge sums of money were being transferred internationally. What the Australian government knew about this scandal may remain a mystery for years to come.
What is clear about this whole sordid affair is that it is the largest abuse of the Food for Oil era. AWB was the biggest and the greediest of the abusers and squandered hundreds of millions of dollars in an unethical deal with Saddam Hussain. The reputation and credibility of the AWB has be destroyed and several international buyer refuse to deal with it. AWB will most likely lose its monopoly over the sale of Australian wheat to world. The reputation of Australia’s credibility in the build up to the Iraq invasion has also been damaged by this scandal. As such any investigation that leave any question over whether all the culprits were identified is a farce. Perhaps we still need a Royal Commission to investigate properly.
The UN food for oil sanctions against Iraq were put in place to stop Saddam Hussian from rebuilding his armed forces and to limit his ability to build weapons of mass destruction. Whether it was the right tactic or the wrong tactic was made mute after the Coalition of the Willing invaded. At the time of the sanctions the ordinary Iraqis were put under extreme hardship and had to do without things like basic medicines. Yet as the sanctions were being enforced by a UN land and sea blocked secret deals were being done to get around these sanctions. Those deals were in direct violation of the UN sanctions and ensured that over $300 million dollars in kickbacks went directly to Saddam Hussain. The culprit of this funneling of cash was the AWB (The Australian Wheat Board). The AWB is legislated to be the monopoly that controls all wheat sales out of Australia.
The size of this scandal and vast amounts were being funneled through a Jordanian trucking company that took the kickbacks in for Saddam. The publicity of this scandal came to the scrutiny of the public after the invasion of Iraq by the coalition. At first there was denial by the Australian government that the AWB, a major company in Australia could ever do such a thing. In essence the AWB were being accused of paying Saddam Hussian bribes so that he would buy Australian wheat. Yet as more news of the scandal broke there were calls for a Royal Commission by the opposition. Instead of a Royal Commission with the powers to find who was involved and who knew about the kickbacks the Howard government decided to have an enquiry with limited powers of investigation. This was called the Cole Commission and was given the power to investigate any wrong doing by the AWB and its executives only. There was no power to investigate Australian government minister or its senior public servants. Commissioner Cole was limited to investigate only the AWB wrongdoing, leading to accusations that the commission was designed as government white wash.
The findings of the Cole Commission were tabled in the Australian Federal parliament yesterday after question time. This is against the normal convention of tabling reports before question time and may indicate a political maneuver. The report itself paints a sordid picture of the operation of the AWB and its culture of dishonesty. It appears that senior executives of the AWB may be charged with a range of criminal offences. Bribes were paid in the form of kickbacks and the money was being used to buy weapons for Saddam as Australia, the UK and USA planned to engage in an invasion. By any stretch this seems like an insane situation of paying for the enemy to buy weapons to shoot at your own soldiers.
What is of significance is what the Cole Commission left off it’s report, things that it had no power to investigate or pursue and perhaps no willingness either. The Australian government and its public servants that were responsible for ensuring that the UN sanctions were not broken were never fully investigated. The Prime Minister is quick to use the Cole Report as evidence that his government had done nothing illegal. Yet since it set up the commission, decided its terms of reference and chose the commissioner there could always be the accusation of a stitch up. The opposition has already accused John Howard of designing a commission that could never find fault with his party. If these accusation of trying to avoid scrutiny had no substance then they would have a very short life. Yet there are too many indications that implicate the Australian government as either a knowing observer of the kickbacks or at least an incompetent guardian of there moral responsibility to investigate.
More than twenty warning were passed up the chain of command from public servants and military officers. It is baffling to understand how all these warnings were ignored or never passed to the minister for investigation. Foreign Minister Downer claims no knowledge of the scandal at the time. The baffling thing is why he was able to miss a $300 million scandal unless he was intentionally remaining ignorant; or his advisers were deceiving him; or they were incompetent. The price per tone of wheat was highly inflated and should have been cause for investigation as huge sums of money were being transferred internationally. What the Australian government knew about this scandal may remain a mystery for years to come.
What is clear about this whole sordid affair is that it is the largest abuse of the Food for Oil era. AWB was the biggest and the greediest of the abusers and squandered hundreds of millions of dollars in an unethical deal with Saddam Hussain. The reputation and credibility of the AWB has be destroyed and several international buyer refuse to deal with it. AWB will most likely lose its monopoly over the sale of Australian wheat to world. The reputation of Australia’s credibility in the build up to the Iraq invasion has also been damaged by this scandal. As such any investigation that leave any question over whether all the culprits were identified is a farce. Perhaps we still need a Royal Commission to investigate properly.
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