The Cole Inquiry into the AWB bribery scandal has heard questions about the motives of a humanitarian wheat donation to feed the Iraqi people and whether the wheat exporter knew it was in breach of UN sanctions.
Source:
SBS
8 Feb 2006 - 12:00 AM  UPDATED 22 Aug 2013 - 12:18 PM

Commissioner, Terence Cole, asked an AWB executive and former BHP staffer, Charles Stott, if the word 'donation' was misused, for what could only be described as a 'soft bribe.'

It was the second day Mr Stott had taken the stand.

Questioning centred around his role in assisting resources giant, BHP, recoup 5-million US-dollars, plus interest, for a 1996 wheat shipment to Iraq, which it describes as an 'humanitarian gesture.'

Mr Stott, who left AWB that year to work for BHP, says he believed the shipment was a 'donation' for Iraqis suffering under international trade sanctions.

But he thought BHP hoped to win favour in order to develop Iraq's oilfields.

Commissioner Terence Cole asked Mr Stott, “Are you using the word ‘donation’ in lieu of the words ‘soft bribe’?

Mr Stott answered:

“I am not using the words ‘soft bribe’.

To that, Mr Cole said,

"No you're using the word ‘donation’, but what do you mean by that?"

Mr Stott replied, "I mean that people make donations to receive some potential benefit in the future ..."

At one stage, Mr Stott objected to the Counsel Assisting's line of questioning, describing it as 'hostile and confronting'.

He says it was leading him down a path that would not accurately represent the truth.

Late today, the Commissioner warned Mr Stott that penalties could be issued, if he failed to answer questions.

Mr Stott also told the inquiry that he'd destroyed a risk management report by auditors, Arthur Anderson, into AWB's Iraqi business, around the time of the United Nations Volker inquiry.- acting on the advice of AWB's lawyers.

There was no respite for Mr Stott, during the lunchbreak outside the inquiry.

A TV comedy team asking the AWB executive if he'd be willing to contribute to Saddam Hussein's legal defence fund.

Mr Stott's lawyer couldn't see the funny side, officially complaining to the Commissioner who says he will refer the matter to Federal police.