loses legal battle

A Federal Court judge has ruled that the company had "deliberately and dishonestly conspired to defraud the United Nations" in its dealings with the former Iraqi regime.

Labor's foreign affairs spokesman Kevin Rudd has welcomed the decision.

"The Federal Court has done the right thing on AWB," he said.

"It is now time for the Federal Government to do the right thing and give Commissioner Cole enough powers to make findings not just about the company but about the knowledge and actions of Australian Government ministers as well.

"The question we don't know the answer to is the extent to which government ministers were themselves directly responsible."

Dave R.