Fed: Downer ends evidence at Cole inquiry

AAP General News (Australia)
04-11-2006
Fed: Downer ends evidence at Cole inquiry

SYDNEY, April 11 AAP - Foreign Minister Alexander Downer has wrapped up his evidence
at the Cole inquiry with a strong defence of his department's handling of the AWB kickbacks
affair.

During more than three hours of intense grilling in the witness box, Mr Downer said
while his department had received various warnings about irregularities in AWB's wheat
contracts with Saddam Hussein's regime, they had done "a good job" handling the allegations.

The inquiry has heard several diplomatic cables were sent to the Department of Foreign
Affairs and Trade (DFAT) warning about possible kickbacks AWB might have paid the Iraqis
in breach of United Nations sanctions.

A batch of unassessed intelligence was also received by various government departments
about how the trucking company AWB used in Iraq, known as Alia, was part-owned by Saddam's
regime and was charging companies extra fees for exports which breached UN sanctions.

Terry Forrest QC, who represents several AWB executives, asked Mr Downer if he had
any criticism of the way his department had handled the allegations raised about AWB in
recent years.

"No, I think my department did a good job," Mr Downer replied.

"I think they fulfilled their duty. I think they are very professional people. I have
faith in their professionalism and their commitment.

"They faithfully implemented government policy."

Mr Forrest also quizzed Mr Downer about the unassessed intelligence material handed
to the government since 1998 about Alia and the fees it charged companies participating
in the UN's oil-for-food program in Iraq.

Mr Downer said he had not seen any of the unassessed material, which has been suppressed
by Commissioner Terence Cole.

He said DFAT did receive one piece of the material, but added it was not sent to his office.

He had no recollection of one piece of intelligence which was sent to the National
Security Committee of Cabinet, whose members include Mr Downer, Mr Howard and Treasurer
Peter Costello.

The inquiry yesterday heard evidence from the head of the Office of National Assessments,
Peter Varghese, that information was given to the committee about a 10 per cent surcharge
that companies exporting to Iraq under the oil-for-food program were being charged.

Mr Downer said hundreds of thousands of pieces of unassessed intelligence were received
by the government, some of which could be "missed or not given much priority".

"It is a very major challenge to deal with intelligence," Mr Downer said.

"They (DFAT) don't read all of it. It's physically impossible for them to read all of it."

AAP bt/was/sp

KEYWORD: AWB DOWNER DFAT

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