australia must repay awb money: labor

Australia must repay AWB money: Labor

January 19, 2006
AUSTRALIA must repay money that grain marketer AWB has ripped off the United Nations, while the wheat exporter's boss now has no option but to resign, Labor says.

Opposition foreign affairs spokesman Kevin Rudd told reporters in Sydney today that following revelations in the Cole royal commission over the past three days the government must now detail how it will repay the money stolen from the UN.

Under questioning, AWB's chief executive Andrew Lindberg has admitted AWB deceived the United Nations by repeatedly inflating wheat prices to recover a debt from Iraqi dictator Saddam Hussein's government.

The royal commission is investigating the company's role in hundreds of millions of dollars paid out in kickbacks to Saddam's regime during the corruption ridden UN oil-for-food program.

In his third straight day on the witness stand, Mr Lindberg today admitted the UN was deceived by his company's actions, which artificially inflated wheat prices to recover a $10 million debt AWB was collecting for resources giant BHP.









"If the AWB has ripped off some $10 million plus from the United Nations' bank account ... then we have an obligation as a country to ensure these things are made right," Mr Rudd said.

"Australia has international obligations here at stake."

Asked then if AWB boss Andrew Lindberg should step down from his position as managing director of AWB, Mr Rudd said he had no option but to resign.

"It is imperative for Mr Lindberg to take the action which is in the best interest of Australian wheat farmers," Mr Rudd said.

"Given everything we have heard to date and in the absence of any evidence to the contrary, I would think Mr Lindberg has no other course of action available (but to resign)."