Australian wheat cash fed Saddam, says report

SYDNEY - Australian wheat sales to Iraq were used to illegally funnel about US$200 million ($285.28 million) from the UN humanitarian oil-for-food programme to prop up Saddam Hussein's murderous regime, The Australian newspaper reported today.

The paper says the Howard Government is bracing itself for an explosive United Nations report, which identifies the AWB, formerly the Australian Wheat Board, as one of 3000 companies involved in a corruption scandal that syphoned US$12.8 billion to Saddam over the seven years the programme operated.

According to The Australian, the report, by UN chief investigator Paul Volcker and due to be released early today, says the AWB was involved in providing US$200 million in payments to a transport firm.

But it also found there was insufficient evidence to show the AWB or its executives were aware the money was eventually going to Saddam.

The paper says shares in AWB, which earlier this month reached a record high of A$5.41, collapsed yesterday afternoon, falling 23c ahead of the release of the Volcker report.

The stock finished more than 4 per cent lower, at A$5.16, giving the company a market value of almost A$1.8 billion.

- AAP