USDA Suspends Australian Wheat Board USA Affliate from USDA Export Credit Programs
AWB is blaming U.S. Wheat Associates for the suspension.
Compiled by staff
Published: Nov 15, 2005
USDA recently suspended AWB (USA) Ltd. from participation in its export credit programs. A recent AWB press release blamed U.S. Wheat Associates for the suspension, and said that USW was conducting "unwarranted" attacks on Australian farmers and Australia's international trade interests.
AWB Ltd., formerly the Australian Wheat Board, has been under a cloud since October 27, when they were cited as a case study in a UN investigation of Iraq's infamous Oil for Food Program. Citing exorbitant inland transportation fees paid by AWB, the Report on Programme Manipulation (Humanitarian Goods Transactions and Illicit Payments) determined that "AWB accounted for more than 14% of the illicit payments made to Iraq in connection with humanitarian purchases under the Programme." AWB did not dispute that the illicit payments totalled more than $US 221 million, although they did claim ignorance of the scheme, stating that "AWB was part of an elaborate deception by the regime."
The UN report, however, provides extensive details on how "numerous documentary and circumstantial warning signs placed at least some employees of AWB on notice that payments to Alia may have been illicitly funding the Iraqi regime."
AWB operates a wholly-owned U.S. subsidiary, AWB (USA) Ltd. They have registered themselves with USDA as an authorized exporter of U.S. commodities and, as such, are subject to U.S. laws and regulations.
"The U.S. wheat marketing system is based a strong system of laws and regulations that protect buyers, sellers, and everyone in-between. The U.S. government has every right -- indeed, an obligation -- to ensure that those laws are enforced. In extreme cases, enforcement involves program suspension," says USW president Alan Tracy.
AWB has thirty days to respond to their suspension, the same as any U.S. company would.
Tracy also took umbrage at AWB managing director Andrew Lindberg's assertion that USW was distorting the findings of the OFF report.
"In fact, the AWB is the one doing the distorting by implying that the report clears them of knowingly making the illicit payments. That is a misrepresentation of the findings, as the report does not by any stretch of the imagination exonerate them."
In response to the AWB claim that they were duped by Saddam, "we find it inconceivable that they were ignorant of the scheme," Tracy adds.
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Tagged: wheat, usda, UN, U.S. Wheat Associates
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