When a trial involving a former chairman of the Australian Wheat Board, Trevor Flugge, over payments allegedly made to the Iraqi regime of Saddam Hussein started in Melbourne last week, international observers might have thought Australia was finally making some progress in enforcing anti-corruption laws.

But a closer look at the proceedings reveals that this is a civil case brought by the Australian Securities and Investments Commission alleging breaches of Flugge's duties as a director. Although the 2005 Cole Inquiry heard that the AWB transferred $US225 million to the Hussein government, all criminal proceedings were dropped long ago, with a major barrier being the complicated law in this area.