The Cole inquiry into the Iraqi kickbacks has released previously confidential legal advice AWB had obtained about hundreds of millions of dollars it paid the Iraqis while UN sanctions were in place against the country.
It has heard that that AWB funnelled $290 million in kickbacks to Iraq via so-called "trucking fees" to a Jordanian based transport firm, Alia, which was part owned by Saddam's government, despite UN sanctions banning any such payments.
Legal advice from Blake Dawson Waldron warned AWB had breached the Commonwealth Crimes Act and UN sanctions, according to documents released to the inquiry today.
The legal advice said there was no indication the trucking fees AWB paid Alia were for genuine transport services in Iraq and that an offence would have been committed if the money was paid to influence the Iraqi government.
AWB's in-house lawyer Jim Cooper told the inquiry that the wheat exporter had received the advice in August 2003.
But Mr Cooper said Blake Dawson Waldron had only provided "draft advice."
"I never felt we had a clear understanding of the facts," he said.
"I personally (felt) we never got to the bottom of the facts on the (UN) oil-for-food matter."
The inquiry continues.