Saddam Defence Fund

John Howard is to face Australia’s Cole Inquiry to explain how nearly $300 million was funneled to Saddam’s regime under his watch.

Below are just some of the warnings which Howard is expected to claim were never drawn to his attention:

JUNE 23, 2003 - Heidi Venamore, deputy head of Australia's representative office in Baghdad,attended a briefing with the Coalition Provisional Authority's new oil-for-food managers, led by US Captain Blake Puckett. She told Canberra:

"Every contract since Phase 9 included a kickback to the regime from between 10 and 19 per cent. The CPA was advising (Iraq) ministries to tell companies with contracts that the ‘after-sales service fee', which was usually to be deposited into offshore banks, would be remitted to them."

OCT 22, 2003 (11.50AM) - Matt Francis, spokesman at Washington embassy cables Canberra, Baghdad, UN attache in New York. Cable sent to the Prime Minister, Downer, Vaile, Hill and others.

"Congress Daily in Washington has published a report claiming the former regime of Saddam Hussein contracted to pay the AWB almost twice as much for Australian wheat as it paid for American wheat, appearing to support claims by US Wheat Associates of illegal kickbacks in contract pricing.
Congress Daily said it received the contracts from "a wheat industry source" who said he had obtained them from a US Government official. US Wheat Associates president Alan Tracy is quoted in the story, repeating earlier allegations of corrupt dealings between the AWB and the former regime - also covered by this publication."

(6.52pm) - Fran Freeman, agriculture officer attached to Washington embassy, cables various ministers, government departments and officers.

"A letter is circulating within Congress addressed to the President (George Bush) expressing concern about the high prices received for wheat exports to Iraq under the United Nations oil-for-food program. The letter urges the President to raise this matter with the Prime Minister. Request Canberra move quickly to contact AWB Ltd encouraging them to make a formal public statement explicitly rejecting and rebutting allegations in the letter and the Congress Daily article published earlier today."

OCT 23, 2003 – Department of Foreign Affairs and Trade’s (DFAT) Iraq taskforce cables Washington embassy saying AWB rejected allegations as "baseless and outrageous". Taskforce says government "assured by AWB Ltd that no such kickbacks were paid" and sets out 17-point suggested defence of AWB. Peter Baxter, Australian charge d'affaires in Washington replies.

"Senator Daschle (Democrat leader in the US Senate) instigated the letter to the President regarding the allegations against AWB. The issue of AWB contracts has also been raised with us by Republican senators...
(Embassy officials met Daschle staff and) drawing on specific talking points we strenuously rebutted the allegation that the price received by AWB for wheat to Iraq in any way implied that kickbacks were paid to the Saddam regime. Such an allegation was without foundation and utterly reprehensible...

Daschle's staff were apologetic about the lack of prior consultation...

AUGUST 19, 2004 - Cable from Washington embassy to Canberra

"AWB's initial contact with staff of the Senate committee investigating the UN oil-for-food program showed the investigation was still at a very early stage, but that AWB's activities were likely to be one focus of attention. In addition to seeking AWB's co-operation in providing documents pertaining to OFF, they indicated a potential interest in relevant Australian Government documents."