We knew nothing of bribes: Howard
January 30, 2006 - 10:00AM
http://www.smh.com.au/news/national/...469633022.html
The government worked closely with Australia's wheat exporter but knew nothing of bribes paid to former Iraqi dictator Saddam Hussein, Prime Minister John Howard said.
Furious at Labor claims that letters released to an inquiry implicate the government in the bribery scandal, Mr Howard said it was his job to promote wheat sales in the lucrative Iraqi market.
"We were in no way involved with the payment of bribes. We didn't condone them, we didn't have knowledge of them, but we did work closely with AWB," he told ABC Radio today.
"I make no bones about that. I had no reason to believe that AWB Ltd wasn't just going all out to preserve Australia's wheat sales to Iraq.
"That's what we wanted them to do, that's what Mr Rudd wanted them to do and that what every wheat grower in Australia wanted them to do."
A letter from Mr Howard to AWB chief executive Andrew Lindberg was released, along with scores of other documents, by the Cole inquiry into the UN oil-for-food scandal yesterday.
In the letter dated July 27, 2002, after Iraq threatened to cut wheat imports from Australia, Mr Howard told Mr Lindberg: "In view of the importance of the matter, I suggest the government and AWB Ltd remain in close contact in order that we can jointly attempt to achieve a satisfactory outcome in the longer term."
Shortly afterwards, Mr Lindberg and other AWB staff, along with Department of Foreign Affairs and Trade (DFAT) officials, visited Iraq.
The inquiry has been told that during that visit, Mr Lindberg agreed to pay $US2 million ($A2.7 million) to the Iraqis that was to be disguised in an inflated wheat contract.
And in November 2000, Mr Vaile wrote to then AWB chairman Trevor Flugge urging him to "maintain a close dialogue" with his office and with DFAT officials.
Mr Howard said he had met with AWB after Mr Lindberg's return.
"When they came back from Iraq there was a meeting between the leaders of AWB and the foreign minister," he said.
"I called in on that meeting and we just had a very brief discussion and there had been an issue regarding the wheat, which had been resolved.
"We were pleased about that, Mr Rudd was jubilant, he said that AWB Ltd had achieved its (favourable) outcome."
Asked if he knew how the AWB achieved its outcome, Mr Howard said: "No they didn't go in to any detail; we had no suspicion, no suggestion there had been any bribes paid."
The Cole inquiry is looking into the payment by AWB of almost $300 million in kickbacks to Saddam's regime, at a time strict UN sanctions were in place, to secure $2.3 billion in wheat contracts. The contracts were paid under the humanitarian oil-for-food program.
Mr Howard said in 2002 the government was facing pressure to preserve Australian wheat sales to Iraq while maintaining opposition to Saddam's regime.
"And by writing to AWB Ltd, that's exactly what I was doing and I don't find this letter embarrassing I don't think it proves what Mr Rudd rather breathlessly said," he said.
"It would have been astonishing in 2002 if, as prime minister, I hadn't done everything I possibly could to preserve Australia's very valuable wheat market."
Opposition foreign affairs spokesman Kevin Rudd today said the letters tied the government more closely to the process of deceiving the United Nations and funnelling money to the Iraqi dictator.
Mr Rudd said the Howard government tried to construct a firewall around itself by blaming the UN for the corrupt oil-for-food program and denying any responsibility for AWB's actions.
"These letters demonstrate at the highest levels of the Howard government is that there was a pattern of systematic briefing, contact and engagement with ministers, their advisers and officials throughout this period," he said.
"Yet the Howard government wants to somehow cause us all to believe that only the AWB and not themselves should be under the scrutiny of an inquiry."
The inquiry has already been given evidence showing the government, through DFAT and its mission to the United Nations in New York, was warned AWB was engaged in behaviour that went against UN sanctions.
Later, Mr Howard told the John Laws radio program he would be failing the country if he did not help AWB keep its contracts to Iraq.
"I would have been failing in my job as prime minister if I hadn't done everything I could to maintain and protect the wheat market because it was one of our best," he said.
Mr Howard said he had no idea the company was acting in any corrupt manner.
"They're alleged to be illegal. But we have no knowledge of any corrupt behaviour," he said.
"Now the question of whether AWB behaved corruptly is something for the commission to decide upon and I'm not going to prejudge that."
Mr Howard said he and the government was not naive for believing AWB and its actions with the Saddam regime.
"I don't believe I was naive because there was no evidence as distinct from anything else that was put to the government to suggest that anything corrupt was occurring," he said.
"The experience I'd had with people involved with AWB was quite a positive one. They did not strike me as people who would be engaged in improper conduct."
Earlier evidence at the Cole inquiry showed the government, through the Department of Foreign Affairs and Trade and its mission to the UN in New York, had been warned that AWB was engaged in activities that flouted UN sanctions.
The commission has to report by the end of March.
AAP