 Appendix 24 |
 Contents |
 Appendix 26 |
Included amongst the documents that the United Nations provided to this Inquiry were translations of five documents headed 'MOU goods transport form'. These were translations of (Iraq) Ministry of Transport records[1] and were described by the IIC in its final report as forms for the transferring of MOU[2] goods.[3]
The translations were tendered as Exhibits 80 and 81 in this Inquiry.
The document of which Exhibit 80 is a translation was also the subject of consideration and comment by the IIC in its final report.[4] In that context, a very similar translation of the original Arabic document was reproduced in the IIC's final report.[5] A copy of that document has also been reproduced in Chapter 26.[6]
The translations and the associated documents (in Arabic) are identified in the Table 25.1.
Each of these five documents records the distribution as between certain departments and agencies of the then government of Iraq of amounts which Alia remitted to the ISCWT (Ministry of Transport) from inland transportation fees[7] that AWB paid to Alia in respect of wheat that AWB had shipped in bulk from Australia to Iraq under the Oil-for-Food Programme pursuant to contracts for the sale of wheat that AWB concluded with the IGB.[8]
Table 25.1 MOU Goods Transport Forms
|
Original Arabic |
English translation |
Date |
Exhibit no. |
|
UNO.0003.4874 (IIC-ARC-005017) |
UNO.0003.4875 (IIC-ARC-005018) |
1 June 2002 |
Exhibit 80 |
|
UNO.0001.0084 (IIC-ARC-000082) |
UNO.0001.0083 (IIC-ARC-000081) |
12 June 2002 |
Exhibit 81 |
|
UNO.0003.4855 (IIC-ARC-004998) |
UNO.0003.4856 (IIC-ARC-004999) |
13 June 2002 |
Exhibit 81 |
|
UNO.0003.4891 (IIC-ARC-005034) |
UNO.0003.4892 (IIC-ARC-005035) |
6 July 2002 |
Exhibit 81 |
|
UNO.0003.4948 (IIC-ARC-005091) |
UNO.0003.4949 (IIC-ARC-005092) |
28 December 2002 |
Exhibit 81 |
This document records the collection of US$2,247,211.26 from Alia in respect of a shipment of Australian wheat discharged at Umm Qasr from the vessel Bei Hai in May 2002[9] and the subsequent distribution of those funds as between various departments and agencies of the then government of Iraq.
This was a shipment by AWB under its contract A1112 with the IGB. This was a contract under phase XI of the Oil-for-Food Programme. On 18 April 2002 AWB paid to Alia inland transportation fees[10] of €2,326,800 in respect of this shipment.[11] These fees formed part of €4,620,258.48 which AWB instructed its bank on 18 April 2002 to transfer to Alia's account at the Jordan National Bank.[12] These fees were deposited into Alia's euro account with the Jordan National Bank on 22 April 2002.[13]
From the inland transportation fees it had received, Alia in turn transferred €2,320,979[14] to the ISCWT (Iraqi Ministry of Transport).[15] This was after deduction of €5,817, being the commission of 0.25 per cent of the inland transportation fees that Alia received in return for collecting these fees on behalf of the ISCWT.[16]
Of the funds that the ISCWT (Ministry of Transport) collected from Alia in respect of this shipment on the Bei Hai (namely US$2,247,211.26)[17] a total of US$2,247,210.93 was distributed between various departments and agencies of the then government of Iraq in the amounts identified in Exhibit 80 and repeated in Table 25.2.
The shipment of Australian wheat to Iraq referred to in Exhibit 80 is described in that document as being a shipment under 'Phase 11' (of the Oil-for-Food Programme) and in particular pursuant to United Nations approval (Comm) number '11013'.[18] Exhibit 80 also records the letter of credit from BNP referable to this shipment, namely L/C no. 733475.[19] In fact, the United Nations approval number has been erroneously stated in Exhibit 80. United Nations approval (Comm) number 1100013 was the relevant United Nations approval associated with BNP letter of credit 733475.[20] It is also therefore this approval (Comm) number that is applicable to this shipment.
United Nations approval (Comm) no. 1100013 was issued to the Australian permanent mission to the United Nations in relation to AWB contract A1112 dated 20 December 2001.[21] This was a contract for the supply of wheat in bulk that AWB concluded with the IGB. The United Nations approval dated 4 February 2002 was issued on 5 February 2002.[22]
The shipment referred to in Exhibit 80 was carried to Iraq on the Bei Hai.
This was the second of AWB's shipments of wheat to Iraq under contract A1112. On 22 March 2002 AWB sought permission from DFAT for the export of wheat from Australia to Iraq on the Bei Hai under contract A1112. DFAT granted permission later that day.[23] Loading of the vessel was completed by 2 April 2002.[24] The vessel would have left Australia for Iraq shortly thereafter.
According to Exhibit 80, the Bei Hai anchored (presumably off the port of discharge[25] Umm Qasr) on 4 May 2002 and left the port on 26 May 2002.[26] This was after it had completed discharge of her cargo.[27] This date of departure also accords with the date of the vessel's departure from Umm Qasr recorded in Cotecna's inspection notes for this shipment.[28]
The ship's load is described in Exhibit 80 as having been:
The first of these figures (namely 42000) accords with the quantity of the cargo that was shipped on board the Bei Hai in Australia, as disclosed on both the bill of lading issued in respect of this shipment[30] and AWB's invoice to the IGB (namely 42,000 tonnes).[31] The last figure in the box labelled 'ship load' (namely 41,758.610 tons) accords with the quantity of wheat that was recorded by Cotecna as having been discharged from the vessel in Iraq[32], being the amount for which the AWB Pool was ultimately paid from the escrow account in respect of this shipment.[33]
The total amount that was collected from Alia in respect of this shipment on the Bei Hai was US$2,247,211,26.[34] This is the amount that is recorded next to the box labelled 'Total Collected' in Exhibit 80 and appears to be the product of the figures appearing in the box at the foot of that document under the heading 'Comments':
It would seem from these 'Comments' that transport fees totalling €2,320,976 were collected from Alia.[36] This was equal to US$2,251,346. A service fee of US$4,138.39 was then deducted from this amount, yielding the amount described in Exhibit 80 as the 'Total Collected' (namely US$2,247,211.26).[37]
Of these funds, a total of US$2,247,210.93 was distributed to:
in the manner and amounts set out in the table appearing in the bottom half of the document.
At the time it concluded contract A1112 with the IGB, AWB agreed to pay inland transportation fees (including the additional 10 per cent after-sales-service fee) of €55.40 per tonne of wheat shipped under that contract.[39]
This fee was (on AWB's calculations) equivalent to US$48.97 per tonne. Of this, US$26.50 per tonne represented the land transport fee.[40] The balance (US$27.47 per tonne) represented the additional 10 per cent after-sales-service fee[41] which had been payable in respect of contracts concluded after November 2000.
On 18 April 2002 AWB instructed its bank[42] to transfer €4,620,258.48 from AWB's euro account to Alia (or more particularly to Alia's designated account with the Jordan National Bank).[43]
Of this, €2,326,800 was payment of 100 per cent of the inland transportation fees payable in respect of the wheat shipped on the Bei Hai under contract A1112.[44] The balance was payment of the inland transportation fees for a shipment of wheat to Iraq on another vessel under contract A1111[45] (being the shipment referred to in UNO.0003.4856 in Exhibit 81 which is considered later in this appendix).
The bank statement for AWB's euro account confirms that €4,620,258.48 was transferred from that account on 18 April 2002[46], in accordance with AWB's instructions. This payment appears to have been funded from the deposit of an identical sum[47] into AWB's euro bank account the following day (19 April 2002).[48]
Included amongst the documents produced by the Alia to the IIC and which the United Nations in turn produced to this Inquiry were a number of bank statements for various accounts maintained by Alia in its name with the Jordan National Bank. These included bank statements for a euro account, including for the period from April to mid June 2002. Some of these bank statements (and their translations) were tendered before this Inquiry as Exhibit 948.[49]
Within Exhibit 948 there is recorded on page IIC-ARC-100567, being page 10959 of the bank statements for Alia's euro account with the Jordan National Bank, an entry recording the deposit of €4,620,250.48 into that account on 22 April 2002.[50]
This would appear to be the deposit of the €4,620,258.48 that AWB instructed its bank to transfer to Alia's euro account with the Jordan National Bank on 18 April 2002, part of which represented the payment of the inland transportation fees in respect of the shipment on the Bei Hai under contract A1112.
On 23 April 2002 Alia sent an email to Mr Edmonds-Wilson inquiring:
This inquiry appears to have been directed at this deposit into Alia's euro account of €4,620,250.48 of 22 April 2002.
On 24 April 2002 Mr Edmonds-Wilson replied in an email to Alia advising that 'This amount was 100% Inland Transport payment' for two named vessels.[52] One of the vessels named in that email was the Bei Hai.[53] (The other was the vessel that is referred to in UNO.0003.4856 in Exhibit 81 which is considered later in this appendix).
Although there is a difference of €8 between the amount which AWB instructed its bankers to pay to Alia on 18 April 2002[54] (which is also the amount recorded in the bank statement for AWB's euro account as having been paid from out of that account on 18 April 2002[55]) and the amount which page IIC-ARC-100567 records as having been deposited into Alia's euro account on 22 April 2002[56], this slight discrepancy is likely to have been caused by the deduction of bank fees or charges from the amount remitted by either the receiving bank or an intermediate bank.[57] A similar difference between the amount paid by AWB to Alia and the amount deposited into Alia's account is also found in respect of each of the payments and deposits considered in this appendix, as well as in the payments and deposits considered in Appendix 24.
As has already been observed, the total amount of the 'Transport fees' recorded in the box at the foot of Exhibit 80 is €2,320,976.[58] The difference between that figure and the amount that AWB paid Alia on account of the shipment on the Bei Hai[59] (as part of the €4,620,258.48 transferred to Alia's euro account on 22 April 2002)[60] is €5,824. This is 0.25 per cent (or approximately one quarter of one per cent) of the amount paid by AWB[61] in respect of this shipment. This is consistent with the evidence of Mr Al-Absi before this Inquiry to the effect that at this time Alia was paid a commission of 0.25 per cent of the inland transportation fees that it received, including from AWB, in return for its agreement to receive and pass onto the ISCWT inland transportation fees.[62]
Accordingly, the amount disclosed as 'Transport fees' in the box at the foot of Exhibit 80 (namely €2,320,976) represents the amount that Alia remitted to the ISCWT (Iraqi Ministry of Transport) after Alia had retained its 0.25 per cent commission.
On 1 May 2002 Alia sent a letter to 'The state Co For Water Transport-Basra'[63], stating:
The amount of the inland transportation fees said by Alia to have been received by it (namely €2,326,796) coincides (within €4) of the amount paid by AWB in respect of this shipment (namely €2,326,800).[65]
This €4 difference between these two amounts is exactly half the €8 difference between the total amount that AWB instructed its bank to transfer to Alia on 18 April 2002 and the amount that Alia's bank statements record as having been deposited into its euro account on 22 April 2002.[66] This is consistent with this €8 difference having been split equally between the two shipments to which AWB's transfer of 18 April 2002 related.
There was also included amongst the documents that the United Nations produced to this Inquiry a table said to be of AWB payments for the period from 1 January 2002 to 24 June 2002[67] together with a translation of that document.[68] The third row of the table refers to the Bei Hai (and AWB's shipment of wheat on that vessel).
This table records in respect of the shipment on the Bei Hai:
The difference between these two amounts is €5,817. This is 0.25 per cent (or one quarter of one per cent) of the amount that Alia received from AWB in respect of this shipment and thereby represents the commission withheld by Alia from the inland transportation fees paid to it in respect of this shipment, consistent with Mr Al-Absi's evidence.[74]
Following the deposit of €4,620,250.48 into Alia's euro account on 22 April 2002, there were a number of transfers of funds from this account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank.[75] The entries for some of these transfers are expressed to be in relation to 'the vessel' although no vessel is named. None of these transfers are expressed specifically to be in relation to the Bei Hai or the shipment of wheat to Iraq on that vessel in 2002 or to AWB or its contract A1112. It is not possible to find within those bank statements for this account that have been translated and included in Exhibit 948 any entry recording the transfer of €2,320,976[76] or €2,316,709.62[77] or any similar amount at or about the relevant time, which might be referable to the transfer by Alia of the inland transportation fees that it received in respect of this shipment on the Bei Hai.
The table of AWB payments for the period from 1 January 2002 to 24 June 2002[78] (referred to above) has a column headed 'Date'. This would seem to record the date on which funds were transferred by Alia. The entry in that column for the shipment on the Bei Hai records that the fees collected by Alia were transferred by it on 3 June 2002.[79] That this was the date when Alia transferred those fees would also appear to be confirmed by Exhibit 80.[80]
However there is no transfer of either €2,320,976 or €2,316,709.62 or any similar amount or any entry recording the transfer of such an amount specifically referable to this shipment on (or about) that date recorded in the bank statement for Alia's euro account within Exhibit 948.[81] Whilst there is recorded on page IIC-ARC-100571 of Exhibit 948 a transfer of €2,287,720 having been made from Alia's euro account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank on 2 June 2002[82], it is not apparent either from the bank statement itself or from any of evidence before this Inquiry whether this transfer relates to this shipment on the Bei Hai or is in respect of some other vessel or shipment.
It is also not possible to discern from the evidence before this Inquiry whether the €2,320,976 or €2,316,709.62 of inland transport fees collected by Alia and transferred to the ISCWT (Iraqi Ministry of Transport) was transferred as a single payment or as a number of payments and if so when this occurred.
Nevertheless, having regard to the contents of Exhibit 80, it appears that almost all[83] of the inland transportation fees that Alia received in respect of this shipment on the Bei Hai were transferred to the ISCWT (Iraqi Ministry of Transport) and that these funds[84] were in turn distributed between the various departments and agencies of the then Iraqi government in the amounts and manner set out in that document.
There is recorded in a note in Arabic dated 29 May 2002 regarding the Bei Hai and sent by 'Marine Agencies-Shipping' to 'Financial Department':
There was also recorded on this note the following breakdown of the amounts to be received from the supplier:
· 46.95 USD transport fees
-0.50 USD commission
46.40
-26.00 the main transport
20.40 USD after sale services
The rate of US$46.95 per tonne nominated in this document does not accord precisely with the total inland transportation fees per tonne (expressed in US dollars) calculated by AWB in respect of its shipments under contract A1112.[86] Nevertheless it may be inferred from the breakdown recorded on this note that the inland transportation fees paid by AWB in respect of the shipment on the Bei Hai included:
In relation to the first of these elements, the US$0.50 per tonne commission, this would appear to have been a levy imposed for the recovery of the cost of the port fees that the preceding year the Iraqis had sought impose on AWB. By June 2001, this US$0.50 per tonne port fee charge had been incorporated into the inland transportation fee payable in respect of such shipments.[87]
In relation to the second element, of the inland transportation fees of €55.40 per tonne payable under contract A1112, US$26.50 per tonne was for the transport component. This was the transport fee that was nominated by the IGB and included US$0.50 per tonne on account of port fees. The sum of these first and second elements is equal to this US$26.50 per tonne fee designated by the IGB at the time contract A1112 was concluded.
As for the third element, it is clear from the foregoing breakdown that the balance of the amount said to be payable by the supplier (AWB) after deduction of the transport fees and port charges represents the 10 per cent additional (after-sales-service) fee applicable to the shipment. This is notwithstanding that there is a slight discrepancy between the amount recorded here and the AWB's own calculation of this part of the total amount payable.[88]
Of the funds transferred by Alia to the ISCWT (Iraqi Ministry of Transport) from the inland transportation fees that it received from AWB in respect of the shipment of wheat to Iraq on the Bei Hai a total of US$2,247,210.93 was distributed between the various departments and agencies of the former Government of Iraq and in the amounts identified in Table 25.2.
Just over US$1.5 million or approximately two thirds of the inland transportation fees [89] collected from Alia in respect of this shipment was allocated to the Iraqi Ministry of Finance. This is approximately equivalent to US$35 per tonne shipped. The purpose(s) to which the Ministry applied those funds that it received is not disclosed on the evidence before this Inquiry.
A mere 18 per cent of the total amount collected from Alia as inland transportation fees for this shipment was distributed to 'land', presumably in respect of the land transport of the wheat. This is equivalent to approximately US$9.75 per tonne. Just over 4 per cent was allocated to the ports company.
Table 25.2 Distribution of the inland transportation fees collected from Alia in respect of the shipment of wheat on board the Bei Hai
|
Recipient |
Amount |
Proportion of fees paid for this shipment (%) |
|
Amount paid to ports |
90,455.16 |
4.03 |
|
Amount paid to water |
26,250.01 |
1.17 |
|
Amount paid to water: 25% marine agencies |
5,492.42 |
0.24 |
|
Amount paid to land |
407,048.22 |
18.11 |
|
Amount paid to railroad |
(Nil) |
- |
|
Illegible |
47,607.97 |
2.12 |
|
Amount paid to grains Co. |
71,411.97 |
3.18 |
|
Services and Correspondence |
47,607.98 |
2.12 |
|
Shortage amount/Packaged |
(Nil) |
- |
|
Amount paid to the Ministry of Finance-additional |
526,715.01 |
23.44 |
|
Amount paid to the Ministry of Finance-service |
976,816.93 |
43.47 |
|
Amount paid to al-wataniya insurance |
23,803.66 |
1.06 |
|
Total |
2,247,210.93 |
100.00 |
Source: Exhibit 80 (UNO.0003.4875)
UNO.0001.0083 (IIC-ARC-000081) within Exhibit 81 is the 'MOU goods transport form' for another shipment of Australian wheat shipped by AWB to Iraq in 2002. This shipment was discharged in Umm Qasr in late May / early June 2002. This document records the collection of US$2,695,519.85 from Alia in respect of that shipment and the subsequent distribution of those funds as between various departments and agencies of the then government of Iraq.
The shipment that is referred to in UNO.0001.0083 within Exhibit 81 was another shipment by AWB under its contract A1112 with the IGB. On 15 May 2002, AWB paid to Alia inland transportation fees of €2,786,563.49 in respect of this shipment. This was part of a transfer of €3,202,529.09 that AWB instructed its bank to make to Alia's euro account on 15 May 2002.[90] These fees were deposited into Alia's euro account with the Jordan National Bank on 19 May 2002.[91]
From the inland transportation fees it had received in respect of this shipment, Alia transferred €2,779,592[92] to the ISCWT (Iraqi Ministry of Transport).[93] This was after deduction of approximately €6,967, being Alia's commission of 0.25 per cent of the inland transportation fees that it received.[94]
Of the amount that the ISCWT (Iraqi Ministry of Transport) collected from Alia in respect of this shipment (namely US$2,695,519.85)[95] a total of US$2,554,616.59 was distributed between the various departments and agencies of the then government of Iraq and in the amounts identified in UNO.0001.0083 within Exhibit 81 and repeated in Table 25.3.
According to UNO.0001.0083 in Exhibit 81 the shipment referred to in that document was a shipment of Australian wheat by AWB under phase XI of the Oil-for-Food Programme. In particular it was pursuant to United Nations approval (Comm) number (1100013). As previously noted in the context of Exhibit 80, this was the United Nations approval number for AWB's contract A1112 dated 20 December 2001.
The vessel named in UNO.0001.0083[96] was the vessel used by AWB for the carriage of its fourth shipment of wheat to Iraq under contract A1112.
AWB sought permission from DFAT for the export of wheat on this vessel under contract A1112 on 11 April 2002.[97] That permission was provided under cover of a facsimile from DFAT to AWB later that same day.[98] The vessel completed loading on or about 23 April 2002.[99] The quantity of wheat recorded in the bill of lading as having been loaded on board the vessel accords with the quantity of the 'ship load' recorded on UNO.0001.0083 in Exhibit 81.[100]
The 'Total Collected' from Alia as recorded in UNO.0001.0083 in Exhibit 81 was US$2,695,519.85. The following 'Comments' relevant to the calculation of that amount also appeared in the lower most box at the foot of that document:
The inland transportation fees[102] payable in respect of shipments under contract A1112 was €55.40 per tonne.[103] (The components of this fee have already been noted in the context of Exhibit 80).
By facsimile dated 15 May 2002 AWB instructed its bank[104] to transfer €3,202,529.09 from AWB's euro account to Alia (or more particularly to Alia's account at the Jordan National Bank).[105]
Of that amount, €2,786,563.49 was payment of 100 per cent of the inland transportation fees payable for the shipment referred to in UNO.0001.0083 of Exhibit 81.[106] The balance of the funds transferred was payment of inland transportation fees for another shipment by AWB under contract A1111.[107] This is the shipment referred to in UNO.0003.4856 in Exhibit 81 which is discussed later in this appendix.
Details of the two shipments making up this transfer are set out in AWB's internal 'Euro Payment Request' issued by AWB's International Marketing-Middle East Desk authorising this transfer.[108]
The bank statement for AWB's euro account confirms that €3,202,529.09 was transferred from this account on 15 May 2002, in accordance with AWB's instructions.[109]
Page IIC-ARC-100570 within Exhibit 948, being page 10962 of the bank statements for Alia's euro account with the Jordan National Bank, records the deposit of €3,202,521.090 into that account on 19 May 2002.[110]
This would appear to be the deposit of the €3,202,529.09 that AWB instructed its bank to transfer to Alia on 15 May 2002. Although there is a slight difference (namely €8) between the amount that AWB instructed its bank to remit to Alia on 15 May 2002[111] (being the same amount that was paid from AWB's euro account that day[112]) and the amount that is recorded on page IIC-ARC-100570 as having been deposited into Alia's euro account on 19 May 2002[113], this is likely to be the result of bank fees or similar bank charges having been deducted from the amount remitted by AWB by the recipient bank of an intermediary bank.[114]
On 20 May 2002, Alia sent an email to Mr Edmonds-Wilson advising:
This inquiry appears to have been directed at the deposit of €3,202,521.090 into Alia's euro account the preceding day.
Mr Edmonds-Wilson replied by email on 21 May 2002, advising that 'The amount of EUR3,202,529.09' represented 100 per cent of the inland transportation fees payable for the shipment under contract A1112 referred to in UNO.0001.0083 of Exhibit 81 and an additional amount for the shipment under contract A1111[116] (which is the shipment referred to in UNO.0003.4856 of Exhibit 81 and examined later in this appendix).
On 21 May 2002, Alia sent a letter to 'The State Co. for Water Transport-Basra'. The heading referred to the name of the vessel identified in UNO.0001.0083 in Exhibit 81. The letter read:
The amount of the inland transportation fees that Alia acknowledged in this letter as having received from AWB in respect of this shipment (namely €2,786,559) is almost identical to the amount of the inland transportation fees that AWB paid in respect of that same shipment (namely €2,786,563.49).[118] The difference between these two amounts of €4 is one half of the €8 difference between the total amount that AWB instructed its bank to transfer to Alia's euro account with the Jordan National Bank on 15 May 2002[119] and the amount that is recorded as having been received in Alia's euro account with the Jordan National Bank on 19 May 2002 in respect of that transfer.[120] That there is this difference of €4 is consistent with the €8 difference having been apportioned equally between the two shipments whose inland transportation fees make up the amount that AWB had transferred to Alia.
The amount of the 'Transport fees' stated in the box appearing at the foot of UNO.0001.0083 in Exhibit 81 was €2,779,592. The difference between that amount and the amount paid by AWB in respect of this shipment[121] is €6,971.49. This is approximately 0.25 per cent (or one quarter of one per cent) of the amount paid by AWB in respect of this vessel, consistent with Mr Al-Absi's evidence that Alia received and retained 0.25 per cent of the inland transportation fees that it received and paid onto the ISCWT as its commission.
In those circumstances, the amount of the 'Transport fees' stated in the box appearing at the foot of UNO.0001.0083 in Exhibit 81 (namely €2,779,592) is the amount that Alia transferred to the ISCWT (Iraqi Ministry of Transport) after deduction of its commission.
The vessel and shipment referred to in UNO.0001.0083 of Exhibit 81 are also refered to the table of AWB payments for the period from 1 January 2002 to 24 June 2002.[122] The entries in the third row relate to this vessel.
This table records in respect of that vessel and shipment:
The difference between these two amounts in this table is €6,967, which is 0.25 per cent (or one quarter of one per cent) of the inland transportation fees that Alia received in respect of this shipment, again consistent with the evidence as the amount of the commission that Alia was entitled to from the inland transportation fees paid to it.[124]
According to the information contained within the box at the foot of UNO.0001.0083 in Exhibit 81, the €2,779,592 transferred by Alia was equal to US$2,686,204.24. From this there was to deducted a charge of US$684.39. Although further up that document the 'Total Collected Amount' is US$2,695,519.85. The reason for the discrepancy between this amount and the product of the figures in the box at the foot of UNO.0001.0083 is not apparent on the face of that document.
Of the total funds received from Alia in respect of this shipment US$2,554,616.59 was distributed between the various departments and agencies of the former government of Iraq in the amounts identified in Table 25.3.
Table 25.3 Distribution of the inland transportation fees collected from Alia in respect of the shipment of wheat referred to on page UNO.0001.0083 in Exhibit 81
|
Recipient |
Amount |
Proportion of fees paid for this shipment (%) |
|
Amount paid to ports |
108,868.35 |
4.26 |
|
Amount paid to water |
31,593.50 |
1.24 |
|
Amount paid to water: 25% marine agencies |
6,587.98 |
0.28 |
|
Amount paid to land |
489,907.56 |
19.18 |
|
Amount paid to railroad |
||
|
Amount paid to illegible |
57,299.13 |
2.24 |
|
Amount paid to state Co. for grains |
85,948.70 |
3.36 |
|
Services and Correspondence |
57,299.13 |
2.24 |
|
Shortage amount/Packaged |
||
|
Amount paid to the Ministry of Finance-additional |
489,907.56 |
19.18 |
|
Amount paid to the Ministry of Finance-service |
1,169,830.70 |
45.79 |
|
Amount paid to al-wataniya insurance |
28,629.80 |
1.12 |
|
Total |
2,554,616.59 |
100.00 |
Source: Exhibit 81 (UNO.0001.0083)
The total amount distributed was US$140,903.26 less than the 'Total Collected Amount' (namely US$2,695,519.85). The reason why not all the funds collected from Alia were distributed or what happened to the US$140,903.26 is not apparent from UNO.0001.0083.
Leaving aside that difference, it can nevertheless still be seen from Table 25.3 that of the funds collected from Alia, US$1.65 million was allocated to the Iraqi Ministry of Finance. This was approximately 64 per cent of that portion of the inland transportation fees collected from Alia in respect of this shipment which was distributed and is equivalent to a little over US$32 per tonne of the wheat shipped. The purpose(s) to which the Ministry of Finance applied those funds that it received is not apparent on the evidence before this Inquiry.
Approximately 19 per cent of those funds collected from Alia as transport fees for this shipment was allocated to 'land', presumably in respect of the land transport of the wheat. This amounts to approximately US$9.75 per tonne of the wheat shipped. Just over 4 per cent of the total funds distributed was allocated to the ports company
UNO.0003.4856 (IIC-ARC-004999) within Exhibit 81 is the 'MOU goods transport form' for a shipment of Australian wheat shipped by AWB to Iraq and which was discharged at Umm Qasr in May 2002.
It records the collection of US$2,617,252.43 from Alia in respect of that shipment and the subsequent distribution of those funds as between various departments and agencies of the then government of Iraq.
The shipment referred to in UNO.0003.4856 was a shipment by AWB under its contract A1111 with the IGB dated 20 December 2001. This was also a shipment under phase XI of the Oil-for-Food Programme.
AWB paid inland transportation fees of €2,709,424.08 to Alia in respect of this shipment. These fees were paid by way of two payments.
The first payment was for €2,293,458.40 and made on 18 April 2002.[125] It was part of a larger amount (€4,620,258.48) that AWB instructed its bank to transfer from its euro account to Alia on 18 April 2002.[126] The balance of the funds transferred were the inland transportation fees payable for the Bei Hai (referred to in Exhibit 80 and examined earlier in this appendix). The funds transferred were deposited into Alia's euro account with the Jordan National Bank on 22 April 2002.[127]
The second payment was for €415,965.60.[128] This payment was also made as part of a larger transfer of funds (namely €3,202,529.09) which AWB instructed its bank to make on 15 May 2002. The balance of this transfer was the inland transportation fees payable in respect of the shipment referred to in UNO.0001.0083 in Exhibit 81 (considered earlier in this appendix). These funds were deposited into Alia's euro account with the Jordan National Bank on 19 May 2002.[129]
The reason two payments were made was because AWB had made an error in calculating the amount of the first payment.[130]
From the inland transportation fees it received in respect of this shipment, Alia transferred €2,287,720[131] to the ISCWT (Iraqi Ministry of Transport).[132] This was after deduction of its commission of 0.25 per cent.[133]
Of the amount that the ISCWT (Ministry of Transport) is recorded as having received from Alia in respect of this shipment (namely US$2,617,252.43)[134] a total of US$2,615,252.63 was distributed between various the departments and agencies of the then government of Iraq and in the amounts identified in UNO.0003.4856 within Exhibit 81 and repeated in Table 25.4.
The vessel and shipment referred to in UNO.0003.4856 in Exhibit 81 is identified in that document as a shipment under phase XI of the Oil-for-Food Programme. However, unlike the other documents in Exhibits 80 and 81, UNO.0003.4856 does not record the United Nations approval (Comm) number or BNP letter of credit (L/C) number applicable to this shipment. Nevertheless, it is apparent from both the name of the vessel and the quantity of the cargo recorded on UNO.0003.4856 as having been shipped[135] that the shipment referred to in UNO.0003.4856 was the first of AWB's shipments of wheat under contract A1111.
This was a contract that AWB concluded with the IGB on 20 December 2001 under phase XI of the Oil-for-Food Programme.[136] It was approved by the United Nations under approval (Comm) number 1100014.[137]
AWB sought and obtained the permission of DFAT for the shipment of wheat to Iraq on the vessel named in UNO.0003.4856 under contract A1111 on 19 March 2002.[138] Loading was completed on 31 March 2002.[139] The vessel would have left Australia for Iraq shortly thereafter. The vessel arrived at the anchorage (at Umm Qasr) on 16 May 2002 and departed on 30 May 2002.[140] This was after having completed the discharge of her cargo that day.[141]
The inland transportation fee payable in respect of shipments of wheat under contract A1111 was €56.17 per tonne.[142]
This was the equivalent of US$48.77 per tonne, on AWB's calculations.[143] Of this US$26.50 per tonne represented the transportation fee. This was including an allowance of US$0.50 per tonne for port charges. The balance represented the 10 per cent after-sales-service fee applicable to the shipments.
By facsimile dated 18 April 2002 AWB's Treasury Operations instructed its bank[144] to transfer €4,620,258.48 to Alia (or more particularly to Alia's nominated account with the Jordan National Bank).[145]
Of this amount, €2,293,458.48 was said to be payment of 100 per cent of the inland transportation fees payable in respect of the shipment referred to in UNO.0003.4856 in Exhibit 81.[146] The balance was the inland transportation fees payable by AWB in relation to its shipment to Iraq on the Bei Hai under contract A1112[147] (which was the shipment referred to in Exhibit 80 and which has already been discussed in some detail in that context earlier in this appendix).
Details of the two shipments making up this transfer of €4,620,258.48 are set out in AWB's internal 'Euro Payment Request' authorising these payments.[148]
The bank statements for AWB's euro account confirm the payment from that account of €4,620,258.48 on 19 April 2002, consistent with its above instruction.[149]
There is recorded on page IIC-ARC-100567 of Ex 948, being page 10959 of the bank statements for Alia's euro account with the Jordan National Bank, the deposit of €4,620,250.480 into that account on 22 April 2002.[150]
This would appear to be the deposit of AWB's transfer of €4,620,258.48 on 19 April 2002. Although there is a slight difference (namely €8) between the amount that AWB instructed it bank to remit to Alia[151] (being the same amount that was paid from AWB's euro account[152]) and the amount that is recorded on page IIC-ARC-100567 as having been deposited into Alia's euro account[153], this is likely to be the result of bank fees or similar bank charges having been deducted from the amount transferred by AWB by the recipient bank or an intermediary bank.[154]
On 23 April 2002 Alia sent an email to Mr Edmonds-Wilson at AWB inquiring:
This inquiry appears to have been directed at this deposit of €4,620,250.480 into Alia's euro account the preceding day.
On 24 April 2002 Mr Edmonds-Wilson replied by email to Alia advising that the amount was 100 per cent of the inland transportation payments for both the Bei Hai shipment and the vessel and shipment referred to in UNO.0003.4856 in Exhibit 81.[156]
Although the payment made by AWB on 19 April 2002 in respect of this shipment under its contract A1111 was intended to be payment in full of the inland transportation fees payable in respect of that shipment, it appears that AWB had made an error in its calculation of the amount due. The amount that should have been paid was €2,709,424.08. The amount in fact paid as part of the transfer of 19 April 2002 was €2,293,448.98. The shortfall was €415,965.60.
On 6 May 2002 Alia sent a message to 'The state co. for Water Transport-Basra'[157]. It was headed by reference to the vessel referred to on UNO.0003.4856 and read:
The amount that Alia acknowledged in this message as having received from AWB (namely €2,293,454) is almost identical to the amount of the inland transportation fees that AWB paid to Alia in respect of this shipment as part of the transfer on 19 April 2002 (namely €2,293,458.48). The difference of €4 is half the difference of €8 between the total amount that AWB instructed its bank to transfer to Alia on 19 April 2002 and the amount that is recorded as having been deposited into Alia's euro account with the National Bank of Jordan on 22 April 2002.[159] This €4 difference in relation to this particular shipment is consistent with the €8 difference applicable to the whole transfer having been apportioned equally between the two shipments whose inland transportation fees made up the total amount transferred by AWB on that occasion.
On 7 May 2002, Alia sent an email to AWB advising:
The amount that Alia acknowledged in this email having received is €1 less than the amount in fact paid by AWB and €3 more than it acknowledged to the ISCWT in its correspondence of 6 May 2002 as having received in respect of this shipment.[161]
Mr Edmonds-Wilson replied to Alia's email of 7 May 2002 later that same day, acknowledging the error in the calculation of the inland transportation fees that had been paid in respect of this shipment. He wrote:
This further payment was made on 15 May 2002 when AWB instructed its bank[163] to transfer a further €3,202,529.09 from its euro account to Alia (or more particularly to Alia's nominated account with the Jordan National Bank).[164]
Of the amount transferred, €415,965.60 was the additional inland transportation fees due on the shipment under contract A1111 which is referred to in UNO.0003.4856.[165] This amount was in accordance with the amount foreshadowed in Mr Edmonds-Wilson's email of 7 May 2002.[166] (There appears to be an explanation for this payment on the copy of AWB's internal 'Euro Payment Request' and whilst it is for the most part illegible it does appear to confirm that the total amount that should have been paid in respect of this shipment was €2,709,424.08.[167] That this was the total amount due is also confirmed by the amount recorded in the 'Shipment Advice details' in UNO.0003.4872-4873).
The balance of the funds transferred by AWB on 15 May 2002 was payment of 100 per cent of the inland transportation fees[168] in respect of a shipment under contract A1112, being the same shipment referred to in UNO.0001.0083 in Exhibit 81 (and considered earlier in this appendix).
The bank statements for AWB's euro account confirm the payment from that account of €3,202,529.09 on 15 May 2002 in accordance with AWB's above instruction.[169]
There is recorded on page IIC-ARC-100570 of Ex 948, being page 10962 of the bank statements for Alia's euro account with the Jordan National Bank, the deposit of €3,202,521.090 into that account on 19 May 2002.[170]
This would appear to be the deposit of AWB's transfer of €3,202,529.09 made on 15 May 2002. Although there is a slight difference (namely €8) between the amount that AWB instructed it bank to remit to Alia[171] (being the same amount that was paid from AWB's euro account[172]) and the amount that is recorded on page IIC-ARC-100567 as having been deposited into Alia's euro account[173], this is likely to be the result of bank fees or similar bank charges having been deducted from the amount remitted by AWB by the recipient bank of an intermediary bank.[174]
On 20 May 2002, Alia sent an email to Mr Edmonds-Wilson advising: 'We have received the following amount, kindly send us the details: 3202521 Euro'.[175]
This inquiry by Alia appears to have been directed at this deposit of €3,202,521.090 into Alia's euro account the preceding day.
Mr Edmonds-Wilson replied in an email on 21 May 2002, advising that 'The amount of EUR3,202,529.09' represented 100 per cent of the inland transportation fees payable for the shipment under contract A1112 on the vessel named in UNO.0001.0083 and the additional amount owing for the shipment under contract A1111 referred to in UNO.0003.4856 in Exhibit 81.[176]
On 21 May 2002 Alia sent a message to the 'State co. for Water Transport-Basra'[177]. The heading referred to the vessel identified in UNO.0003.4856 in Exhibit 81. The message read:
The amount that Alia acknowledged in this message as having received from AWB (namely €415,961) is almost equal to the further amount of inland transportation fees that AWB paid to Alia in respect of this shipment (namely €415,965). The difference is (again) €4, which is (again) half of the difference (of €8) between the total amount that AWB instructed its bank to transfer to Alia on 15 May 2002 and the amount that is recorded as having been deposited into Alia's euro account with the National Bank of Jordan on 19 May 2002[179] (consistent with this €8 difference having been apportioned equally between the two shipments whose inland transportation fees made up the amount transferred by AWB on 15 May 2002).
Accordingly, through the two payments identified above, AWB paid to Alia inland transportation fees totalling €2,709,424.08[180] in respect of the shipment under contract A1111 that is referred to in UNO.0003.4856 in Exhibit 81.
The 'received amount' of 'Transport Charges' referred to in the box at the foot of page UNO.0003.4856 in Exhibit 81 is '2709415.00 Euro'. This is within €10 of the total inland transportation fees paid by AWB to Alia in respect of this shipment (namely €2,709,424.08).[181]
Bearing in mind that these fees were paid by AWB in two payments, this €9.08 discrepancy between the 'Transport Charges' referred to in UNO.0003.4856 and the amount actually paid by AWB is consistent with the difference of €4 between the amount paid by AWB and the amount received by Alia that has already been observed in relation to each of these payments.
The shipment referred to in UNO.0003.4856 in Exhibit 81 is also referred to in the first and second rows of the table of AWB payments for the period from 1 January 2002 to 24 June 2002.[182]
This table records in respect of this vessel and shipment two amounts under each of the columns headed 'Received Amount' and 'Transferred Amount' (consistent with AWB's payment of the inland transportation fees in respect of this shipment having been paid in two tranches).
More particularly this table records in respect of this vessel and shipment:
The difference between these two totals is €6,774. This is almost identical to the difference between the total of the two amounts under the 'Transferred Amount' column and the 'Transport Charges' of €2,709,415 found in the box at the foot of UNO.0003.4856 in Exhibit 81 (which is €6,773). This difference is also equal to 0.25 per cent (or one quarter of one per cent) of the total amount of the inland transportation fees that Alia received from AWB in respect of this shipment (consistent with the evidence before this Inquiry as to the commission that Alia was entitled to retain from the inland transportation fees paid to it).[183]
Accordingly, the amount of the 'Transport Charges' referred to in the box at the foot of page UNO.0003.4856 in Exhibit 81 (namely €2,709,415) would seem to be the amount of the inland transportation fees received by Alia from AWB in respect of the shipment under contract A1111 that is referred to in UNO.0003.4856, before the deduction or retention of Alia's commission of 0.25 per cent.
The total amount collected from Alia in respect of the shipment referred to in UNO.0003.4856 in Exhibit 81 was US$2,617,252.43. This is the amount that has been inserted in the box labelled 'Total Collected' on that document. This is (presumably) the US dollar equivalent of the funds (in euros) which Alia transferred to the ISCWT (Iraqi Ministry of Transport) from the inland transportation fees that it received from AWB in respect of the shipment that is referred to in UNO.0003.4856 in Exhibit 81. However it is not apparent from the entries in that document how that US dollar amount was calculated. In particular, this is not readily apparent from the information contained in the box headed 'Comments' at the foot of that page.
In the table of AWB payments for the period from 1 January 2002 to 24 June 2002[184] there are two dates recorded against the two amounts of €2,287,720 and €414.922 under the column 'Transferred Amounts' in respect of this shipment, namely 6 June 2002 and 23 June 2002 respectively. It would appear that these are the dates on which those amounts were transferred. However it has not been possible to find either of those transfers or transfers of those amounts in the copies of the bank statements for Alia's euro account in Exhibit 948. In particular it has not been possible to find a transfer of the first amount on or about 6 June 2002 within the Alia bank statements. The bank statements for Alia's euro account with the Jordan National Bank in Exhibit 948 only go up to 16 June 2002. It is therefore not possible to verify from those statements whether there was a transfer of the second of these two amounts at or about the second date given.
Nevertheless it is apparent from UNO.0003.4856 in Exhibit 81 that funds were remitted by Alia to the ISCWT (Iraqi Ministry of Transport) from the inland transportation fees that it received from AWB in respect of the shipment referred to in that document and that those funds were distributed to those departments and agencies of the former government of Iraq listed in that document and in the amounts specified in that document (and which are repeated in Table 25.4).
In the table of AWB payments for the period from 1 January 2002 to 24 June 2002[185] the second of the two receipts and payments recorded in respect of this shipment is described (in the column headed 'Comments') as 'after sales service'.[186] However this is not the way in which AWB treated its second payment to Alia. Nor was the second payment a payment of after-sales-service fees.
As has already been noted, AWB's second payment was made as a consequence of its error in calculating the amount of the inland transportation fees due in respect of this shipment at the time it made the first payment. Furthermore, as the after-sales-service fee payable in respect of this shipment was calculated on 10 per cent of the value of the CIF FIT price of the cargo, the amount of the after-sales-service fee applicable to the shipment referred to in UNO.0003.4856 in Exhibit 81 was much greater than the amount of AWB's second payment to Alia. This is borne out by the distribution of the fees collected for this shipment recorded in UNO.0003.4856 (and repeated in Table 25.4). The amount allocated to the Ministry of Finance for 'service' exceeded significantly the amount of AWB's second payment.
Of the funds received from Alia in respect of the inland transportation fees that it had received from AWB in respect of the shipment referred to in UNO.0003.4856 in Exhibit 81, US$2,615,252.63 was distributed between the various departments and agencies of the then government of Iraq in the amounts identified in Table 25.4.
Table 25.4 Distribution of the inland transportation fees collected from Alia in respect of the shipment of wheat referred to on page UNO.0003.4856 in Exhibit 81
|
Recipient |
Amount |
Proportion of fees paid for this shipment |
|
Amount paid to ports |
52,923.81 |
2.02 |
|
Amount paid to water |
27,924.46 |
1.07 |
|
Amount paid to the Sea water: 25% |
28,068.12 |
1.00 |
|
Amount paid to land |
447,068.25 |
17.09 |
|
Amount paid to railroad |
29,246.21 |
1.12 |
|
Amount paid to the illegible |
111,418.54 |
4.26 |
|
Amount paid to Ministry of Trade |
83,563.91 |
3.20 |
|
Services and Correspondence-trade |
55,709.27 |
2.13 |
|
Shortage amount/Packaged |
||
|
Amount paid to the Ministry of Finance-additional |
615,954.97 |
23.55 |
|
Amount paid to the Ministry of Finance-service |
1,131,117.30 |
43.25 |
|
Amount paid to al-wataniya insurance |
27,854.63 |
1.07 |
|
Total |
2,615,252.63 |
100.00 |
Approximately 17 per cent of the total amount collected from Alia as transport fees for this shipment was distributed to 'land', presumably in respect of the land transport of the wheat. This is equivalent to approximately US$9.10 per tonne. Just over 2 per cent of the total amount collected from Alia and distributed was allocated to the ports company.
UNO.0003.4892 (IIC-ARC-005035) within Exhibit 81 is the 'MOU Goods Transport form' for a shipment of Australian wheat shipped by AWB to Iraq in late May 2002 and which was discharged in Umm Qasr in June 2002. This document records the collection of US$2,241,402.98 from Alia in respect of that shipment and the subsequent distribution of those funds as between various departments and agencies of the then government of Iraq.
This shipment referred to in UNO.0003.4892 was another of AWB's shipments of wheat to Iraq under its contract A1111 with the IGB. On 24 May 2002, AWB paid inland transportation fees of €2,317,140 to Alia in respect of that shipment.[187] This was as part of a larger transfer of €5,220,121.61 which AWB asked its bank to pay to Alia on 24 May 2002.[188] These funds were deposited into Alia's euro account with the Jordan National Bank on 27 May 2002.[189]
From the inland transportation fees it had received in respect of this shipment, Alia transferred €2,311,343[190] to the ISCWT (Iraqi Ministry of Transport).[191] This was after deduction of approximately €5,793, being Alia's commission of 0.25 per cent of the inland transportation fees that it received.[192]
Following the payment of service charges of US$599.76[193], a total of US$2,239,870.98 of the amount that the ISCWT (Ministry of Transport) had collected from Alia in respect of this shipment[194] was distributed between the various departments and agencies of the then government of Iraq and in the amounts identified in UNO.0001.0083 within Exhibit 81 and repeated in Table 25.5.
The shipment referred to in UNO.0003.4892 in Exhibit 81 is recorded as being a shipment under both phase XI of the Oil-for-Food Programme and United Nations approval (Comm) number (1100014). As previously observed, this was the United Nations approval number for AWB contract A1111 dated 20 December 2001.
The vessel named in UNO.0003.4892 in Exhibit 81[195] was the vessel used for the carriage of AWB's second shipment of wheat to Iraq under contract A1111.
AWB sought permission from DFAT for the export of wheat on this vessel under contract A1111 on 22 April 2002.[196] That permission was granted by DFAT later that same day.[197] The quantity of wheat recorded in the bill of lading as having been shipped on board this vessel[198] accords with the first figure given for the ship's load in UNO.0003.4892 in Exhibit 81.[199] Loading of the cargo on the vessel was completed by about 5 May 2002.[200] The vessel would have left Australia for Iraq shortly therafter.
The vessel anchored off Iraq on 1 June 2002 and departed Umm Qasr on 21 June 2002.[201] This was after it had completed discharge of its cargo that day.[202]
The inland transportation fee payable in respect of shipments under contract A1111 was €56.17 per tonne. This was the equivalent of US$48.77 per tonne, on AWB's calculations.[203] A breakdown of the elements making up this amount has already been noted earlier in this appendix.
By facsimile dated 24 May 2002 AWB's Treasury Operations instructed its bank[204] to transfer €5,220,121.61 to Alia (or more particularly to Alia's nominated account with the Jordan National Bank).[205]
Of the amount to be transferred, €2,317,140.00 was payment of 100 per cent of the inland transportation fees payable for the shipment referred to in UNO.0003.4892 in Exhibit 81.[206] The balance was payment of inland transportation fees in respect of another of AWB's shipments to Iraq under contract A1112.[207]
Details of the two shipments comprising this transfer of €5,220,121.61 are set out in AWB's internal 'Euro Payment Request' authorising these payments.[208]
The bank statements for AWB's euro account confirm that €5,220,121.61 was paid from that account on 24 May 2002 consistent with AWB's above instruction.[209] This transfer appears to have been funded by the deposit into AWB's euro account the very same day of a foreign exchange receipt of exactly the same amount as the amount transferred to Alia (namely €5,220,121.61).[210] Curiously, the entries for both that deposit and the transfer to Alia are recorded in AWB's bank statement against the name of AWB Finance Limited.[211] Presumably the deposit of these funds into AWB's euro account was the result of a US dollar currency swap or exchange, made in order for AWB to obtain the euros necessary to make the payment to Alia.
There is recorded on page IIC-ARC-100571 of Exhibit 948, being page 10963 of the bank statements for Alia's euro account with the Jordan National Bank, the deposit of €5,220,113.610 into that account on 27 May 2002.[212]
This would appear to be the deposit of AWB's payment of €5,220,121.61 of 24 May 2002. Although there is a slight difference (namely €8) between the amount that AWB instructed it bank to remit to Alia[213] (being the same amount that was paid from AWB's euro account[214]) and the amount that is recorded on page IIC-ARC-100571 as having been deposited into Alia's euro account[215], this is likely to be the result of bank fees or similar bank charges having been deducted from the amount remitted by AWB by the recipient bank or an intermediary bank.[216]
On 27 May 2002 the ISCWT sent a facsimile to Alia in relation to the shipment referred to in UNO.0003.4892 within Exhibit 81 requesting payment of €2,317,140 (being the inland transportation fees for that shipment).[217] There appears towards the end of this facsimile the following:
On 27 May 2002, Alia sent an email to Mr Edmonds-Wilson advising:
This inquiry by Alia appears to have been directed at this deposit of €5,220,113.61 which the bank statements for Alia's euro account record having been made into that account that day.
Mr Edmonds-Wilson replied to this inquiry the next day (28 May 2002) in an email timed at 8:45 am, by referring Alia to an email that he had sent to them earlier that morning.[220] This would seem to be a reference to the email that Mr Edmonds-Wilson sent to Alia two minutes earlier that morning (at 8:43 am) advising it that €5,220,121.51 had been remitted on 24 May 2002 and identifying the two shipments to which that payment related and the amount of the payment made in respect of each shipment. One of those two shipments identified was the shipment referred to in UNO.0003.4892 in Exhibit 81.
On 29 May 2002 Alia sent a message to 'The state Co. for Water Transport-Basra'.[221] The heading referred to the vessel referred to on page UNO.0003.4892 in Exhibit 81. The message read:
The amount that Alia acknowledged in this message as having received from AWB (namely €2,317,136) is almost identical to the amount of inland transportation fees that AWB paid to Alia in respect of this shipment (namely €2,317,140). The difference of €4 is half the difference of €8 between the total amount that AWB instructed its bank to transfer to Alia on 24 May 2002 and the amount that is recorded as having been deposited into Alia's euro account with the National Bank of Jordan on 27 May 2002. The €4 difference in relation to the payment made in respect of this particular shipment is consistent with the €8 difference applicable to the overall transfer having been apportioned equally between the two shipments whose inland transportation fees made up that transfer.
The vessel and shipment referred to in UNO.0003.4892 in Exhibit 81 is also referred to in the fourth row of the table of AWB payments for the period from 1 January 2002 to 24 June 2002 which the United Nations produced to this Inquiry.[223]
This table records in respect of that vessel and shipment:
The difference between these two amounts is €5,793, which is 0.25 per cent (or one quarter of one per cent) of the total amount that Alia received in respect of this shipment (consistent with Mr Al-Absi's evidence as to the commission that Alia was paid for receiving inland transportation fees for transfer to the ISCWT).[228]
The amount of the 'Transport Charges' stated in the box appearing at the foot of UNO.0003.4892 in Exhibit 81 is '231342 Euro'.[229] This would appear to be a typographical error and should read €2,311,342, which would be within €1 of the amount transferred by Alia in respect of this shipment as recorded in the table headed 'Australian Wheat Board payments'.[230] If that is so, the amount of the 'Transport Charges' specified in the box at the foot of UNO.0003.4892 would be the amount that Alia had transferred to the ISCWT (Iraqi Ministry of Transport) from the inland transportation fees that it had received for this shipment from AWB after deduction of its commission of 0.25 per cent.[231]
The complete entry for the box at the foot of UNO.0003.4892 reads:
The first line suggests that the €2,311,342 transferred by Alia when converted into US dollars (on 24 June 2002)[233] yielded an amount of US$2,242,002.71. From this, service fees of US$599.76 were then deducted to give US$2,241,402.95. This is also the 'Total collected amount' specified to in the middle of UNO.0003.4892 (within 3 cents). This amount of US$2,241,402.98 therefore represents the amount which the ISCWT (Iraqi Ministry of Transport) collected from Alia from the inland transportation fees that Alia received from AWB in respect of the shipment referred to in UNO.0003.4892 and after deduction of both Alia's commission and 'Service charges'.
There is no record within any of the bank statements for Alia's euro account within Exhibit 948 of the transfer or €2,311,343. If, as some of the documents suggest, Alia transferred these funds on 24 June 2002, it is not possible to verify whether that transfer was made by reference to Exhibit 948. That is because Exhibit 948 does not contain any bank statements for Alia's euro account with the Jordan National Bank beyond 16 June 2002.[234] There are also no other entries in those bank statements for Alia's euro account that are included in Exhibit 948 and that have been translated which can be linked to Alia's remittance of the inland transportation fees that it received from AWB in respect of this shipment.
Of the US$2,241,402.98 collected from Alia from the inland transportation fees which it received in respect of the shipment referred to in UNO.0003.4892 in Exhibit 81, US$2,239,870.98 was subsequently distributed between the various departments and agencies of the then government of Iraq in the manner and amounts identified in Table 25.5.
Approximately US$1.48 million or a little over 66 per cent of the inland transport fees collected from Alia in respect of this shipment was allocated to the Iraqi Ministry of Finance. This is the equivalent of approximately US$35.50 per tonne of the wheat shipped. The purpose(s) to which the Ministry of Finance applied those funds is not apparent on the evidence before this Inquiry.
Approximately 18 per cent of the total amount collected from Alia as inland transportation fees for this shipment was distributed to 'land', presumably in respect of the land transport of the wheat. This is the equivalent of approximately US$9.75 per tonne. Just over 4 per cent was allocated to the ports company.
UNO.0003.4949 (IIC-ARC-005092) within Exhibit 81 is the 'MOU Goods Transport' form for a shipment of Australian wheat shipped by AWB to Iraq and discharged in Umm Qasr in late October / early November 2002. It records the collection of US$2,211,176.46 from Alia in respect of that shipment and the subsequent distribution of those funds as between various departments and agencies of the then government of Iraq.
Table 25.5 Distribution of the inland transportation fees collected from Alia in respect of the shipment of wheat referred to on page UNO.0003.4892 in Exhibit 81
|
Recipient |
Amount |
Proportion of fees paid for this shipment |
|
Amount paid to ports |
90,912.56 |
4.06 |
|
Amount paid to water |
26,382.75 |
1.18 |
|
Amount paid to the water: 25% |
14,004.31 |
0.63 |
|
Amount paid to land |
409,106.54 |
18.26 |
|
Amount paid to railroad |
||
|
Illegible |
47,828.72 |
2.14 |
|
Amount paid to state Co. for grains |
71,773.08 |
3.20 |
|
Services and Correspondences |
47,848.72 |
2.14 |
|
Shortage amount/Packaged |
||
|
Amount paid to the Ministry of Finance-additional |
526,774.63 |
23.96 |
|
Amount paid to the Ministry of Finance-service |
967,139.77 |
43.18 |
|
Amount paid to al-wataniya insurance |
22,624.36 |
1.01 |
|
Total |
2,239,870.98 |
100.00 |
This was another of AWB's shipments of wheat to Iraq under contract A1111 dated 20 December 2001, in respect of which inland transportation fees of €2,649,428.91 were paid by AWB to Alia on 15 October 2002.[235]
From the inland transportation fees it had received from AWB in respect of this shipment, Alia transferred €2,642,800[236] to the ISCWT (Iraqi Ministry of Transport).[237] This was after deduction of approximately €6,624, being Alia's commission of 0.25 per cent of the inland transportation fees that it received.[238]
The total amount collected by the ISCWT (Iraqi Ministry of Transport) from Alia translated into US$2,211,176.46.[239] The whole of this amount was distributed between the various departments and agencies of the then government of Iraq and in the amounts identified in UNO.0001.0083 within Exhibit 81 (and repeated in Table 25.6).
The shipment referred to in UNO.0003.4849 is said within that document to have been a shipment under phase XI of the Oil-for-Food Programme and in particular under United Nations approval (Comm) number (1100014). As previously observed, this was the United Nations approval number for AWB contract A1111 dated 20 December 2001.
The vessel named in UNO.0003.4949 in Exhibit 81[240] was the vessel used for the carriage of AWB's 10th shipment of wheat to Iraq under contract A1111.
AWB sought DFAT's permission for the export of wheat on this vessel under contract A1111 on 11 July 2002.[241] That permission was granted by DFAT later that same day.[242] The quantity of wheat recorded in the bill of lading[243] as having been shipped on board the vessel accords with the first figure given for the ship's load in UNO.0003.4949 in Exhibit 81.[244] Loading was completed on or about 26 July 2002.[245] The vessel would have left Australia for Iraq shortly thereafter.
The vessel anchored (off Umm Qasr) on 22 October 2002 and sailed on 15 November 2002[246] following the completion of the discharge of its cargo.
The inland transportation fee payable in respect of shipments under contract A1111 was €56.17 per tonne (which was the equivalent of US$48.77 per tonne, on AWB's calculations).[247] A breakdown of the elements making up this amount appears earlier in this appendix.
By facsimile dated 15 October 2002 AWB's Treasury Operations instructed its bank[248] to transfer €5,352,979.38 to Alia (or more particularly to Alia's nominated account with the Jordan National Bank).[249]
Of that amount, €2,649,428.91 was payment of 100 per cent of the inland transportation fees payable in respect of the shipment referred to in UNO.0003.4949 in Exhibit 81.[250] The balance was for the inland transportation fees payable in relation to another of AWB's shipments to Iraq under contract A1112.[251]
Details of the two shipments comprising this transfer are set out in AWB's internal 'Euro Payment Request' authorising these payments.[252]
The bank statements for AWB's euro account confirm the payment from that account of €5,352,979.38 on 15 October 2002 in accordance with AWB's above instruction.[253] This payment appears to have been funded by the deposit into AWB's euro account that same day of a foreign exchange receipt which was exactly the same amount as the amount transferred to Alia.[254] Presumably the funds deposited into AWB's euro account was that result of a US dollar currency swap or exchange. In any event, those funds were deposited into that account in order that AWB could in turn obtain the euros necessary to make the proposed transfer to Alia.
There is not included in Exhibit 948 any copies or translations of bank statements for Alia's euro account bank in respect of October 2002. It is therefore not possible to verify from Exhibit 948 that the €5,352,979.38 that AWB instructed its bank to transfer to Alia's euro account with the Jordan National Bank on 15 October 2002 was deposited into that account.
Nevertheless, there seems little doubt from UNO.0003.4949 in Exhibit 81 that those funds were received by Alia and that a substantial proportion of them was subsequently transferred by Alia to the ISCWT (Iraqi Ministry of Transport) and in turn distributed between the various departments and agencies of the former government of Iraq in the manner and amounts identified in that document.
On 22 October 2002 Alia sent a message to the 'State Co. for Water Transport-Basra'.[255] The heading referred to the vessel that is also referred to in UNO.0003.4949. The message read:
The amount which Alia acknowledged in this message as having received from AWB (namely €2,149,424) in respect of this shipment does not accord with the amount that AWB in fact paid (namely €2,649,428.91).[257]
The reference to '€2,149,424' would appear to be a typographical error. The first '1' should be a '6', in which case the amount should have read '€2,649,424'. This would coincide (within €4) with the amount that AWB paid to Alia in respect of this shipment as part of the transfer of €5,352,979.38, namely €2,649,428.91. The difference of €4 could be readily explained by the deduction of bank fees or other charges from the amount remitted in respect of this shipment by the receiving bank or an intermediate bank (in the manner previously identified).
This would also coincide with the amount listed for this shipment under the column headed 'Received Amount' in the table headed '(Australian Wheat Board Payment) Schedule of Received Amounts in Euro From 1/1/2003 to 19/3/2003'.[258] A copy of both that table in Arabic[259] and a translation of this table were provided to this Inquiry by the United Nations.
This would also coincide with the amount stated in the box appearing at the foot of UNO.0003.4949 in Exhibit 81 as the 'Amount received'. The complete entry for that box reads:
In the table entitled '(Australian Wheat Board Payment) Schedule of Received Amounts in Euro From 1/1/2003 to 19/3/2003'[261] there is recorded in respect of the vessel and thereby shipment referred to in UNO.0003.4949:
The difference between
