iraq cuts off awb, shares dip

Iraq cuts off AWB, shares dip
By AAP and staff writers
February 13, 2006
THE Iraq grain board had suspended its business relationship with monopoly wheat exporter AWB Ltd until the Cole inquiry is completed, AWB said today

AWB (awb.ASX:Quote,News) said it was disappointed with the decision and was determined to take whatever steps to rebuild its reputation with all customers, growers and stakeholders.

AWB shares fell on the news and were down 33 cents or 7 per cent to $4.36 at 1122 AEDT today. The company's shares have dropped sharply since the start of the Cole inquiry, and are well down on their 52-week high of $6.41, struck in early January 2006.

The company said that at its recent meeting, the board had acted swiftly to ensure the continuation of strong management after the resignation of managing director Andrew Lindberg.

AWB had appointed Brendan Stewart as executive chairman and AWB director Peter Polson as acting chief executive officer.









The board had also initiated reviews of its corporate governance and marketing activities by independent auditing and accounting firms to ensure that its practices are of the highest quality.

The Cole Inquiry is an Australian independent inquiry probing the oil-for-food scandal as to whether AWB's actions under the UN oil-for-food program amounted to bribery or broke any other Australian laws.

A UN-appointed inquiry, led by former US Federal Reserve chief Paul Volcker, found AWB accounted for $300 million of the $2.4 billion in illicit payments pocketed by Saddam under the program.