govt paid flugge $1m for 8 months work

ABC Online;
Prime Minister John Howard says in the context of the Cole inquiry into AWB he can understand concern about the million dollar salary paid to the former wheat exporter's chairman Trevor Flugge.

The Government paid Mr Flugge almost a million dollars for less than a year's work as an adviser after the war in Iraq.

Mr Howard has told Sky News the Government had no knowledge of AWB kickbacks to the former Iraqi regime when the salary was paid.

"Although it is a lot of money, it was a challenging assignment and a potentially dangerous environment," he said.

"There's a long list of precedents where people, for relatively short-term consultancies, if I can call it that, of this type have been paid significant amounts of money."

Labor's foreign affairs spokesman Kevin Rudd doe not accept the Prime Minister's explanation.

"When it comes to Trevor Flugge's million dollar paycheck, how on earth does that contrast with what average Australian soldiers were being paid in the field in Iraq at this time," he said.

Cole inquiry

Mr Flugge yesterday told the Cole inquiry that as AWB chairman he did not have a lot to do with deal making and that while he knew about expensive inland trucking fees paid in Iraq, he had no idea about where the money was actually going.

"I was aware that we were paying a trucking fee. My understanding was that it was approved by the UN," Mr Flugge said.

"So unless there was someone or something that actually said to the contrary, then I'm afraid I wouldn't necessarily see that as a red flag."

His version of events is at odds with other evidence given to the inquiry.

Labor's Kelvin Thompson told Parliament that the money Mr Flugge received to represent the Government in Iraq was not well spent.

"Nine hundred and seventy-eight thousand dollars from our aid budget for eight months work because he was such a great communicator and now he tells the Cole commission he's pretty much deaf," Mr Thompson said.

"A virtually ineffective left ear and a right ear which was somewhat impaired. So Mr Speaker we sent this deaf, gun-toting cowboy to clean up Iraq. Good grief!"

Dave R.