Probe on AWB scandal stalled

THE investigation into the AWB executives accused of paying kickbacks to Saddam Hussein's regime appears to have stalled.

THE investigation into the AWB executives accused of paying kickbacks to Saddam Hussein's regime appears to have stalled.

The Australian understands none of the executives under investigation over their dealings with Saddam's regime have been interviewed by federal police or asked to provide statements. The investigation is believed to be stymied by lack of funds and resources.

The slow pace of the inquiry protects senior cabinet ministers from further scrutiny ahead of the election. John Howard, Foreign Minister Alexander Downer and Nationals leader Mark Vaile appeared before last year's Cole inquiry into the kickbacks scandal after it was revealed they had been warned that AWB may have been involved in corruption.

No adverse finding was made against any government minister or official.

The Howard Government established a taskforce to review the findings of the Cole inquiry more than 11 months ago and it is supposed to decide whether criminal charges should be laid against anyone involved in AWB's payment of $290 million to Saddam's regime under the UN's corrupted oil-for-food program.

Commissioner Terrence Cole found that AWB, AWB (International) and individuals were involved in activity that may have breached the Crimes Act 1914, the Criminal Code, the Crimes Act 1958 (Vic), the Banking (Foreign Exchange) Regulations and the Corporations Act 2001.

The taskforce comprises the Australian Federal Police, the Australian Securities and Investments Commission and Victoria Police.

A spokesman for the taskforce said a report on the matter had been submitted on July 11 to a "senior co-ordination group" comprising commonwealth departmental officers and a Victorian administration officer.

"The report recommended that the taskforce should continue as the investigations are current," he said. "It is not appropriate to comment on the matters under investigation or the status of the investigation."

But AWB's former Middle East manager Charles Stott, who was named in the Cole report, said he had heard "absolutely nothing - not a phone call, not a letter, nothing".

And Dominic Hogan, the whistleblower who provided Mr Cole with much of the ammunition for his report, said: "I haven't heard anything from anyone."

Former manager for international sales at AWB Michael Long, who was named in the Cole report, said that he had basically forgotten about the kickbacks inquiry.

"It's not on the radar," he said. "About six weeks ago, we heard they might be speaking to people. but nothing happened."