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Breach admitted in Oil for Food and AWB

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    Breach admitted in Oil for Food and AWB

    Former AWB director admits to breach

    Story Added : 31st May 2012



    The corporate watchdog says the former managing director of wheat exporter AWB has admitted to breaching the Corporations Act.

    ASIC says it is a significant milestone in its long-running case against Andrew Lindberg in the Victorian Supreme Court.

    Mr Lindberg's admission relates to AWB's supply of wheat to Iraq under the United Nations Oil For Food Program.

    Wheat exports under the program concealed almost $300 million which went to the regime of Saddam Hussein.

    ASIC says Mr Lindberg has admitted to contraventions of his duties as a director.

    His admissions include failing to inquire whether adding $8 million to a contact breached UN sanctions.

    He admitted telling the board an internal inquiry into whether sanctions were breached was comprehensive, knowing it was not.

    He has also conceded he was told AWB paid a 10 per cent fee on contracts, but did not inform the board.

    ASIC has agreed Mr Lindberg should be fined $100,000 and disqualified from managing corporations until 2014.



    Story Added by ABC.
    Date Added : 31st May 2012
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