Appendix 12

Contents

Appendix 14

Appendix 13 Inland transportation fees

Table 13.1 Inland transportation fees paid by AWB Limited/AWB Pool in respect of Oil-for-Food Programme contracts, July 1999 to March 2003

Notes

1. An asterisk (*) against the contract signifies a contract that was listed as against AWB Limited in the IIC's final report: Independent Inquiry Committee into the United Nations Oil-for-Food Programme, Manipulation of the Oil-for-Food Programme by the Iraqi Regime, (Paul A Volcker, Chairman), United Nations, New York, 27 October 2005 (Ex 13, UNO.0005.0001).
   
   
2. This includes the 10% after-sales-service fee from the time that additional fee was also imposed. In relation to contracts A1441 (Ex 542, DFT.0006.0013), A1670 (Ex 1223, AWB.0060.0343_R) and A1680 (Ex 1224, AWB.0021.0021_R), the amount in the column represents the inland transportation fee (including the 10% after-sales-service fee) that was agreed between AWB Limited and the IGB at the time the contract was concluded. The price payable by the IGB under each of these three contracts, including the amount of any inland transportation fee payable, whether such a fee was payable in respect of all or any of the shipments or remaining shipments under the contract and whether any 10% after-sales-service fee was payable, were renegotiated following the commencement of hostilities in March 2003 (see Chapter 25). This table does not include details of the renegotiated prices for those contracts.
   
   
3. Ex 950, INQ.0017.0062 (Summary of Inland Transportation Fees Paid as per Ferrier Hodgson Spreadsheets).
   
   
4. This includes the 10% after-sales-service fee from the time it was first imposed.
   
   
5. This sale was treated as a sale under phase IV of the Oil-for-Food Programme; as such no inland transportation fees were payable in respect of wheat shipped under this contract.
   
   
6. As a sale under phase IV of the Oil-for-Food Programme, no inland transportation fees were payable in respect of wheat shipped under this contract.
   
   
7. Although no inland transportation fees were payable in respect of wheat shipped under this contract, AWB Limited in fact paid inland transportation fees of US$12 pmt in respect of the one shipment made under this contract on the Pretty Lady (which also carried a shipment under contract A4334, Ex 1450, AWB.0039.0020_R). See Ex 1450, AWB.0045.0013_R (US Dollar Payment Request), by which $565,541.76 was paid in respect of contracts A4821 (Ex 1450, AWB.0058.0143_R) and A4334 (Ex 1450, AWB.0039.0020_R); for the tonnage shipped per contract see Ex 1450, AWB.0045.0028_R (invoice under contract A4821) and Ex 1450, AWB.0045.0026_R (invoice under contract A4334); see also Ex 950, INQ.0017.0062.
   
   
8. This was an earlier contract under phase V of the Oil-for-Food Programme.
   
   
9. As a phase V contract, no inland transportation fee was payable in respect of wheat shipped under this contract.
   
   
10. Although no inland transportation fees were payable in respect of wheat shipped under this contract, AWB Limited in fact paid inland transportation fees of US$12 pmt in respect of the final shipment made under this contract, a shipment on the Pretty Lady (which also carried a shipment under contract A4821). See Ex 1450, AWB.0045.0013_R (US Dollar Payment Request), by which $565,541.76 was paid in respect of contracts A4821 (Ex 1450, AWB.0058.0143_R) and A4334 (Ex 1450, AWB.0039.0020_R); for the tonnage shipped per contract, see Ex 1450, AWB.0045.0028_R (invoice under contract A4821) and Ex 1450, AWB.0045.0026_R (invoice under contract A4334); see also Ex 950, INQ.0017.0062.
    
    
11. In respect of one shipment under this contract, a fee of US$15 pmt was in fact paid by AWB Limited.
    
    
12. This is the balance of an earlier phase V contract.
    
    
13. Although no inland transportation fee was payable in respect of wheat shipped under this contract (because it was a phase V contract), AWB Limited in fact paid inland transportation fees of US$12 pmt in respect of the shipment made under this contract (that wheat having been shipped together with wheat shipped under contract A4822 (Ex 1451, AWB.0058.0068_R), in respect of which inland transportation fees were payable).
    
    
14. In respect of one shipment under this contract, a fee of US$14 pmt was in fact paid by AWB Limited.
    
    
15. Applying the exchange rate that was used to convert the agreed price of the wheat from US$ to DM.
    
    
16. Part of the inland transportation fees payable in respect of shipments made under this contract was paid in euros as well as Deutschmark. The total amount paid by AWB Limited in these two currencies was equivalent to US$23,661,542.03.
    
    
17. Part of the inland transportation fees payable in respect of shipments made under this contract was paid in euros as well as Deutschmark. The total amount paid by AWB Limited in these two currencies was equivalent to US$23,332,942.79.
    
    
18. Applying the exchange rate that was used to convert the agreed price of the wheat from US$ to euros.
    
    
19. Applying the exchange rate that was used to convert the agreed price of the wheat from US$ to euros.
    
    
20. Applying the exchange rate that was used to convert the agreed price of the wheat from US$ to euros.
    
    
21. Applying the exchange rate that was used to convert the agreed price of the wheat from US$ to euros.
    
    
22. This represents the total amount of the inland transportation fees paid by AWB Limited in respect of shipments under this contract A1441 (Ex 542, DFT.0006.0013) before the commencement of hostilities in March 2003. AWB Limited did not pay any inland transportation fees in respect of those shipments under this contract that were completed after March 2003.
    
    
23. All shipments under this contract A1670 (Ex 1223, AWB.0060.0343_R) were completed after the original price had been renegotiated and in circumstances where AWBL entered into a written contract with Alia for Transportation and General Trade Co. for the carriage of wheat within Iraq in October 2003 (see Ex 954, INQ.0017.0015_R at AWB.0211.0001_R-0013_R, p. 70). Payments of inland transportation fees to Alia made in respect of these shipments under this contract were genuine payments of the cost of the carriage of the wheat (the responsibility of which had been assumed by AWBL) and were not paid as 'kickbacks' to Iraq.
    
    
24. All shipments under this contract A1680 (Ex 1224, AWB.0021.0021_R) were completed after the original price had been renegotiated and in circumstances where AWB Limited entered into a written contract with Alia for Transportation and General Trade Co. for the carriage of wheat within Iraq in October 2003 (see Ex 954, INQ.0017.0015_R at AWB.0211.0001_R-0013_R, p. 70). Payments of inland transportation fees to Alia made in respect of these shipments under this contract were genuine payments of the cost of the carriage of the wheat (the responsibility of which had been assumed by AWBL) and were not paid as 'kickbacks' to Iraq.
    
    
25. Paid in US dollars or the US dollar equivalent of other currencies.

Figure 13.1 Inland transportation fees payable (including 10% after-sales-service fee where applicable) per tonne (in US dollars or US dollar equivalent)

Figure 13.2 Inland transportation fees payable (expressed as a percentage of the CIF price of the wheat sold)

Figure 13.3 Trucking fees paid (per tonne)

Source: Ex 995, AWB.0420.0390.

Figure 13.4 Summary of inland transportation fees paid-as per Ferrier Hodgson spreadsheets

Source: Ex 950, INQ.0017.0062.