Australian Foreign Minister Alexander Downer told an official inquiry yesterday he knew nothing about huge kickbacks paid to former Iraqi president Saddam Hussein's government despite 21 diplomatic warnings which were sent to his office.
Downer was the second minister after Trade Minister Mark Vaile on Monday to appear before the commission of inquiry into the bribes. He may be followed into the witness box later this week by Prime Minister John Howard.
The probe into national wheat exporter AWB's huge sanctions-busting bribes was the first time Australia's longest serving foreign minister has faced such a public grilling in his 10 years in the job.
Downer avoided a huge media contingent awaiting his arrival at the inquiry by slipping in through a side door.
Giving evidence, Downer displayed none of the scorn he has heaped on opposition politicians demanding answers about the US$220 million in sweeteners AWB paid to Iraq. Instead he slumped slightly in his chair and occasionally chewed his lip as he concentrated on questions.
In a written statement released to coincide with his appearance, Downer said he did not know the kickbacks were being paid through a Jordanian trucking company, Alia, which was partly owned by Saddam's regime.
"My recollection is that I did not know and was not otherwise aware at any time during the period from about 1999 to 2003 anything about Alia," he said.
Downer said he did not know "that money paid by AWB to Alia or any other Jordanian trucking company was paid, whether advertently or inadvertently on the part of AWB, to the Iraqis."
Downer denied knowledge of 21 diplomatic cables which were sent to his office warning about possible problems with AWB's practices in Iraq.
He said the cables had been assessed by his office and many were not thought worthy of bringing to his attention.
In his written statement, Downer used the phrase "I do not have a specific recollection of having received or read this cable or of it otherwise being brought my attention" 19 times in relation to the 21 cables. He repeated the phrase with slight variations more than 30 times while testifying, admitting "no one's memory is perfect."
He defended his department's failure to investigate warning signs that AWB was paying kickbacks, saying he believed that the UN was vetting the contracts and that his department did not have the power or expertise to act.
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