Sydney: The Australian Wheat Board is considering asking police to investigate if there had been any wrongdoing in the controversial wheat sale to India in 1998 after a government probe revealed that $2.5 million were
paid as "commission".
The revelation that AWB paid $2.5 million commission to a Caymans Island bank account came to light during the Government inquiry to ascertain if the company breached Australian laws by paying $290 million in alleged kickbacks to Iraq in defiance of the UN sanctions, media reports said.
It was not clear who AWB paid in Caymans Island or why.
The February 1998 wheat deal triggered a probe by the Central Bureau of Investigation which was formally closed two years ago for alleged lack of documentary support from Canberra, a charge rejected by Australian Attorney General.
The documents relating to alleged payment of commission currently form part of the probe conducted by Commisioner Terence Cole into Iraq's Oil-for-Food Programme.
The latest revelation has shocked AWB, which apparently was unaware of the document.
Chairman Brendan Stewart and other directors, internal legal counsel and external lawyers have started a fresh search of AWB's records and e-mails dating back to 1998, The Age daily reported on Monday.
It quoted sources close to the board as saying that the company was considering asking the police to investigate whether there had been any wrongdoing.
The company was not aware of any direct request from Indian authorities to AWB during the CBI investigation or, as a consequence, any lack of co-operation on the part of AWB, AWB spokesman Christian Sealey told the daily.
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"The AWB Ltd board received a report concerning Indian media coverage of the investigation in 2001. No further action was taken by AWB Ltd after closure of the matter by the Indian authorities. However, the AWB Ltd board is reviewing this matter and will take whatever action is necessary," he said.
Australian Attorney General rejected the accusation that the Government failed to cooperate with India following which the CBI closed the investigation.
"Information was provided and the ball was in India's court," he was quoted as saying by ABC Online.
Ruddock said that he cannot speak any further unless India agreed to waive confidentiality arrangements in relation to the matter.
"In order to ensure that the matter could be more fully addressed, I have asked my officials to go back to India and say, are they prepared to waive the usual confidentiality to ensure that the factual material can be on the record and there is no misunderstanding in this matter," he said.
Former AWB chief Andrew Lindberg referred to the Indian investigation in a long report to directors on October 31, 2001.
"AWB's searches to obtain information have uncovered documents alluding to a payment of a commission or rebate of $2.5 million to a company in the Cayman Islands," Lindberg told directors.
"The Commission Agreement has not been located although there are suggestions that such a document did exist."
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