Australia's monopoly wheat exporter AWB Ltd on Tuesday welcomed a government inquiry into its contracts in Iraq after a United Nations report named it as having been involved in kickbacks to the former regime of Saddam Hussein.
Prime Minister John Howard called for the inquiry on Monday, saying he was concerned by last week's UN report which said AWB payments of more than $221 million to Jordanian trucking company, Alia, had ended up in Saddam's coffers.
Melbourne-based AWB has denied it knowingly made the payments. "AWB will cooperage fully with the independent inquiry into the United Nations oil-for-food program," the company said in a statement to the Australian Stock Exchange on Tuesday.
"It is of concern to AWB that allegations are being made against the company and anticipates the inquiry to address them." Australia and the United States are in sharp competition for the big Iraqi wheat market after the toppling of Saddam by US-led forces.
AWB shares were down 2.6 percent at A$5.24 in afternoon trade, in a firmer overall market.