PRIME Minister John Howard's office was told almost five years ago that Iraqi despot Saddam Hussein was trying to extract sanctions-busting kickbacks from wheat exporter AWB. The evidence, the first to suggest Mr Howard may have known Iraq was demanding illicit payments, also draws three Cabinet Ministers, two spy agencies and five government departments into the scandal.
The startling information was revealed by the inquiry into $300 million in kickbacks paid by AWB as the former judge heading the probe, Terence Cole, publicly challenged the Government to reveal its full knowledge of the scandal. And Mr Howard admitted that United Nations investigator Paul Volcker, a former US Federal Reserve chief, raised concerns about AWB more than a year ago during his probe into kickbacks paid under the UN's oil-for-food program.
Mr Howard said Mr Volcker's concerns, which were relayed to the government through the Australian embassy at the UN early last year, did not raise any alarm bells. "My response to that, when it was brought to my attention, was to say that there had to be full transparency and full cooperation with Mr Volcker's inquiry," Mr Howard said.
Mr Howard also said he met Mr Volcker at a function in New York last September – a month before the American's report named AWB as the biggest single provider of kickbacks under the oil-for-food program out of more than 2000 companies which made illicit payments. But Mr Howard said the two did not discuss the issue in any detail, describing their conversation as "chit-chat". The Volcker committee was set up in April 2004.
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