Andrew Lindberg had been in the witness box for just under two hours and facing intense questioning about his knowledge of the $290 million AWB funnelled to Saddam Hussein's government in breach of United Nations sanctions.
He repeatedly insisted he had no idea the money AWB paid as trucking fees to a Jordanian trucking firm, Alia, was being passed on to the Iraqi government.
But Mr Lindberg had to be comforted by his distressed wife and colleagues after a question from commissioner Terence Cole, QC.
Mr Cole had asked: "Mr Lindberg, it does appear that large amounts of money did go from AWB to Iraq through Alia, and you've said to me that it happened and it shouldn't have happened."
"It's obviously been a disaster for AWB and, no doubt, for you personally. Are you able to give me any understanding as to how you think this came about, how it happened in a company like AWB?"
Mr Lindberg replied: "I haven't followed all the evidence in this commission, commissioner, but it would appear that it was set up before I arrived by former employees and it continued under my stewardship, and it shouldn't have."
Seeing Mr Lindberg was choking back tears, Mr Cole ordered a short adjournment be taken.
Prospect of criminal charges
The wheat exporter may now face charges related to terrorism, amid fresh claims staff knew money was being funnelled to Saddam Hussein's regime to build bunkers to bury dead Kurds.
The inquiry was shown a damning internal AWB document which reveals the Iraqis wanted foreign currency in 2001 to build two thousand concrete bunkers.
The bunkers will have cement walls and floors so they are actually designed for burying the Kurds," the email from AWB executive Daryl Borlase to a range of other AWB staff said.
"They intend to build them with fumigation capability so the mind boggles as to whether they are fumigating insects or any other pest that pisses them off."
The board's former managing director, Andrew Lindberg, was quizzed by Counsel assisting the inquiry John Agius.
He asked whether AWB staff knew what atrocities Saddam Hussein’s regime was capable of, while the grain exporter was funnelling kickbacks to it.
After a long pause, Mr Lindberg said: "Well I hope that wasn't said in a serious way."
"I think it is open for you to draw that inference," he added.
Mr Agius said he raised the issue because under commissioner Terence Cole’s terms of reference for the inquiry, he had to consider whether or not AWB committed an offence under terrorism offences in the criminal code.
Mr Lindberg told the inquiry he understood that one of the reasons that UN sanctions had been put in place against Iraq at the time was to stop Saddam's regime getting hold of foreign currency to buy weapons or for other nefarious purposes.
But he insisted that he never knew the trucking fees AWB was paying for wheat deliveries in Iraq were being funnelled to the Iraqi dictator's coffers.