AWB Ltd, the Australian wheat exporter that paid kickbacks to Saddam Hussein, has agreed to pay $35M to settle the class action against it brought by shareholders in Australia.
Three class actions against the company in the USA have been dismissed.
Showing posts with label bribes. Show all posts
Showing posts with label bribes. Show all posts
Monday, February 15, 2010
Tuesday, July 08, 2008
$10BN Lawsuit
The Iraqi government has served a number of foreign companies with a $10BN civil lawsuit. The companies, including Daimler, Siemens and B. Braun are accused of colluding with Saddam Hussein.
The lawsuit describes the kick backs etc involved in the United Nation's food-for-oil program in Iraq as "the largest financial fraud in human history."
The lawsuit has been filed in the US federal court in New York, and alleges that 2,200 companies from 66 countries paid a total of $1.8BN in kickbacks to Saddam Hussein's regime in exchange for supply deals.
Quote:
"Its impact on the people of Iraq when far beyond financial loss.
The corruption of the OFFP (oil-for-food program) affected the very lives and health of the Iraqi people."
Daimler allegedly sold Mercedes trucks and spare parts to the Iraqi government. The A UN-sponsored report by Paul Volcker claims that an area manager at Daimler agreed in 2001 to pay a 10% kickback on a deal to sell an armoured van to Iraq, at an inflated price.
Daimler maintained at the time that it did not knowingly pay kickbacks.
Siemens has been accused of paying a six-figure sum as a bribe to the regime, to secure energy and medical-equipment contracts.
Chickens are coming home to roost!
The lawsuit describes the kick backs etc involved in the United Nation's food-for-oil program in Iraq as "the largest financial fraud in human history."
The lawsuit has been filed in the US federal court in New York, and alleges that 2,200 companies from 66 countries paid a total of $1.8BN in kickbacks to Saddam Hussein's regime in exchange for supply deals.
Quote:
"Its impact on the people of Iraq when far beyond financial loss.
The corruption of the OFFP (oil-for-food program) affected the very lives and health of the Iraqi people."
Daimler allegedly sold Mercedes trucks and spare parts to the Iraqi government. The A UN-sponsored report by Paul Volcker claims that an area manager at Daimler agreed in 2001 to pay a 10% kickback on a deal to sell an armoured van to Iraq, at an inflated price.
Daimler maintained at the time that it did not knowingly pay kickbacks.
Siemens has been accused of paying a six-figure sum as a bribe to the regime, to secure energy and medical-equipment contracts.
Chickens are coming home to roost!
Thursday, January 03, 2008
Bribes Investigation
Executives from GlaxoSmithKline, AstraZeneca and Eli Lilly may be interviewed by Britain's Serious Fraud Office as part of its investigation into allegations that British companies paid bribes to Saddam Hussein's regime in Iraq.
The inquiry comes in the wake of the 2005 UN report by Paul Volcker, who listed more than 2000 companies worldwide that could have been involved with bribes paid to the former Iraqi regime to secure contracts under the UN program.
The report has found evidence suggesting AstraZeneca had paid $162K in kickbacks to secure $2.9M of contracts. GSK was accused of paying $1M for business worth $11.9M.
The investigation could take years, and is expected to cost £22M.
The inquiry comes in the wake of the 2005 UN report by Paul Volcker, who listed more than 2000 companies worldwide that could have been involved with bribes paid to the former Iraqi regime to secure contracts under the UN program.
The report has found evidence suggesting AstraZeneca had paid $162K in kickbacks to secure $2.9M of contracts. GSK was accused of paying $1M for business worth $11.9M.
The investigation could take years, and is expected to cost £22M.
Tuesday, November 20, 2007
Vaile Denies Accusations
The Australian Nationals leader, Mark Vaile, has rejected allegations that Foreign Minister Alexander Downer knew about the AWB scandal before it was revealed.
Former Austrade director John Finnin, who was Australia's top Middle East trade official, told Fairfax newspapers that Mr Downer would have known AWB, Australia's single-desk wheat exporter, was paying kickbacks to Saddam Hussein.
Mr Finnin says he met with the owners of Jordanian trucking firm Alia in September 2003.
Alia was was used to channel funds to Saddam through "trucking fees".
Quote:
"I was the senior trade officer in the region and Iraq was my responsibility.
The foreign minister had enough advisers to know that (the meeting occurred)."
Mr Vaile, a former trade minister, retorted:
"We established, for all intents and purposes, a Royal Commission that was overseen by Royal Commissioner Cole into this whole issue.
It's conclusion was that there was certainly no wrong-doing by government or by government officials and that is a matter on the public record.
As far as we are concerned, the case is closed - it's finished."
Former Austrade director John Finnin, who was Australia's top Middle East trade official, told Fairfax newspapers that Mr Downer would have known AWB, Australia's single-desk wheat exporter, was paying kickbacks to Saddam Hussein.
Mr Finnin says he met with the owners of Jordanian trucking firm Alia in September 2003.
Alia was was used to channel funds to Saddam through "trucking fees".
Quote:
"I was the senior trade officer in the region and Iraq was my responsibility.
The foreign minister had enough advisers to know that (the meeting occurred)."
Mr Vaile, a former trade minister, retorted:
"We established, for all intents and purposes, a Royal Commission that was overseen by Royal Commissioner Cole into this whole issue.
It's conclusion was that there was certainly no wrong-doing by government or by government officials and that is a matter on the public record.
As far as we are concerned, the case is closed - it's finished."
Thursday, August 16, 2007
AWB Bill Passed
The Australian lower house of parliament has passed a bill that will punish those who break UN sanctions. It is ten years since allegations first surfaced that AWB might have been bribing Saddam Hussein.
Attorney-General Philip Ruddock said:
"I reject the suggestion the government has been slow in its response to the threat of money laundering or terrorist financing.
The government, of course, remains committed to ensuring that Australian businesses uphold our international obligations in relation to trade sanctions and combating foreign bribery.
Contravention of UN sanctions and bribery of foreign officials will not be tolerated."
AWB's $300M kickbacks to Saddam were uncovered after the government set up the Cole Commission.
The bill adds a new offence to the 1945 Charter of the United Nations Act which makes it illegal to break an Australian law which enforces UN sanctions, and creates a separate criminal offence for providing false or misleading information relating to sanctions.
Attorney-General Philip Ruddock said:
"I reject the suggestion the government has been slow in its response to the threat of money laundering or terrorist financing.
The government, of course, remains committed to ensuring that Australian businesses uphold our international obligations in relation to trade sanctions and combating foreign bribery.
Contravention of UN sanctions and bribery of foreign officials will not be tolerated."
AWB's $300M kickbacks to Saddam were uncovered after the government set up the Cole Commission.
The bill adds a new offence to the 1945 Charter of the United Nations Act which makes it illegal to break an Australian law which enforces UN sanctions, and creates a separate criminal offence for providing false or misleading information relating to sanctions.
Thursday, February 15, 2007
British Firms Investigated
The Serious Fraud Office (SFO) is investigating a number of British companies, over allegations that they paid bribes to Saddam Hussein to win lucrative contracts.
The investigation will look at possible breaches of the oil-for-food sanctions.
The UN has issued a report which lists over 2,200 companies, worldwide, that may have been linked to bribery to Iraq.
The British firms listed in the report by Paul Volcker, submitted two years ago, include GlaxoSmithKline and AstraZeneca. They have all denied the accusations.
The SFO spokesman said:
"The SFO has now opened a formal investigation into issues relating to the breaches of the embargo (against Iraq).
All this springs out of the Volcker report and other information that came to us last year. The director of the SFO has now signed us up to conduct a full investigation."
AstraZeneca state:
"We deny any allegation of unethical behaviour on our part in our trading relationships with Iraq,” a spokesman said.
AstraZeneca sent a consignment of medicines originally requested by the Hussein government under the United Nations Oil for Food Programme.
Most of the consignment was delivered after the coalition forces of the US and UK had taken control of the country.
The consignment was sent with all relevant United Nations permissions and UK Government Department of Trade and Industry export licences in place."
A GlaxoSmithKline spokesman said:
"GSK denies any wrongdoing. The UN Oil for Food programme was run in the UK by the Department of Trade and Industry and GSK operated entirely within DTI guidance in this area.
Indeed, GSK had a regular dialogue with officials at the DTI in order to ensure that all its dealings under the Oil for Food programme were transparent and in accordance with the regulations."
The investigation will take years and cost millions.
The investigation will look at possible breaches of the oil-for-food sanctions.
The UN has issued a report which lists over 2,200 companies, worldwide, that may have been linked to bribery to Iraq.
The British firms listed in the report by Paul Volcker, submitted two years ago, include GlaxoSmithKline and AstraZeneca. They have all denied the accusations.
The SFO spokesman said:
"The SFO has now opened a formal investigation into issues relating to the breaches of the embargo (against Iraq).
All this springs out of the Volcker report and other information that came to us last year. The director of the SFO has now signed us up to conduct a full investigation."
AstraZeneca state:
"We deny any allegation of unethical behaviour on our part in our trading relationships with Iraq,” a spokesman said.
AstraZeneca sent a consignment of medicines originally requested by the Hussein government under the United Nations Oil for Food Programme.
Most of the consignment was delivered after the coalition forces of the US and UK had taken control of the country.
The consignment was sent with all relevant United Nations permissions and UK Government Department of Trade and Industry export licences in place."
A GlaxoSmithKline spokesman said:
"GSK denies any wrongdoing. The UN Oil for Food programme was run in the UK by the Department of Trade and Industry and GSK operated entirely within DTI guidance in this area.
Indeed, GSK had a regular dialogue with officials at the DTI in order to ensure that all its dealings under the Oil for Food programme were transparent and in accordance with the regulations."
The investigation will take years and cost millions.
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