 Appendix 23 |
 Contents |
 Appendix 25 |
Exhibit 948 contains an extract from documents that were produced by Alia for Transportation and General Trade (Alia) to the United Nations Independent Inquiry Committee (IIC) in the course of its investigations and which the United Nations in turn produced to this Inquiry.
Tab C of Exhibit 948 contains a bundle of bank statements extracted from those documents. This bundle includes IIC-ARC-100612, which is page 7417 of a Deutschmark account that was maintained in the name of 'Alia for Transportation and General Trade Co.' with the Jordan National Bank, covering the period from 9 May 2001 to 21 June 2001.
Tab D of Exhibit 948 contains a translation[i] of the bank statements behind tab C, including a translation of page IIC-ARC-100612 (page 7417).
There are four deposits recorded on page IIC-ARC-100612 (page 7417). Each is for a significant amount. They are listed in Table 24.1.
Table 24.1 Deposits recorded on page IIC-ARC-100612 (page 7417 of Alia's Deutschmark account)
|
Date of deposit |
Amount deposited |
|
9 May 2001 |
DM10,054,785.450 |
|
6 June 2001 |
DM2,077,349.260 |
|
10 June 2001 |
DM6,984,567.180 |
|
24 June 2001 |
DM9,265,943.100 |
For the reasons identified more fully below, each of these four deposits recorded in Alia's bank statement appears to be the deposit of funds paid by AWB to Alia for inland transportation fees, including the additional 10 per cent after-sales-service fee, payable in respect of wheat shipped by AWB to Iraq under contracts concluded under the Oil-for-Food Programme.
Moreover, there also appear on this bank statement following the earlier deposits, the transfer of funds from this account to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank. This reference to the General Maritime Transportation Company in the translation of this bank statement would appear to be a reference to the ISCWT, to whose account with the 'Raffadin Bank in Jordan' Alia remitted the funds that it received by way of inland transportation fees.[ii]
Each of these transfers recorded in the bank statement of Alia is expressed to be in relation to a particular named vessel. All of the vessels named in these entries on this page were vessels chartered by AWB for the carriage of wheat in bulk to Iraq under AWB's contracts for the sale of wheat under the Oil-for-Food Programme. Documents produced by AWB to this Inquiry confirm that inland transportation fees were paid by AWB to Alia in relation to the shipments carried by each of the vessels named in the entries for these transfers appearing on this bank statement.
Each of the transfers to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank appear to be the remittance by Alia to the ISCWT of the inland transportation fees payable in respect of the shipments carried on the vessels named in the transfers, less Alia's commission of 0.25 per cent of the amount received.
A more detailed discussion of each of these deposits and the transfers that follow is contained within the following paragraphs of this appendix.
This is the first entry on page IIC-ARC-100612 (page 7417) and would appear to be the deposit into Alia's Deutschmark bank account of DM10,054,797.45 which AWB paid to Alia in early May 2001.
This represented the payment of the first instalment[iii] of the inland transportation fees, including the additional 10 per cent after-sales-service fees payable in respect of 8 shipments of wheat in bulk from Australian to Iraq which AWB made between 15 March and 12 April 2001 under contract A0430.[iv]
Included amongst the documents produced by AWB to this Inquiry is AWB's request for payment of this amount dated 26 April 2001. This payment was requested by Mr Stott, authorised by Ms Scales and Mr Goodacre and checked by Mr Alvares from the Finance Department (as to the banking details).[v]
This was the first payment of inland transportation fees:
This request for payment identifies the particular vessels (shipments) in respect of which payment was being made and the amount being paid in relation to each vessel.[vii] These details are also repeated on AWB's schedule of inland transportation payments made under contract A0430[viii], which also confirms that the first instalment of the inland transportation fees payable in respect of all 8 shipments under that contract was paid by way of the one payment of DM10,054,797.44. According to this schedule these funds were said to be remitted to Alia on 1 May 2001.[ix]
On 2 May 2001, AWB forwarded by facsimile instructions to its bank[x] to transfer this amount of DM10,054,797.45 from its Deutschmark account with the bank to the credit of Alia and its bank account with the Jordan National Bank.[xi] The transfer was to be made into this account via the Jordan National Bank's correspondent bank, Deutsche Bank in Frankfurt.[xii] The payment was transferred into this account with the Jordan National Bank[xiii] upon the instructions of Alia.[xiv]
AWB's bank statement for its Deutschmark account records the payment of this amount of DM10,054,797.45 from AWB's account on 2 May 2001.[xv]
There is a slight difference (namely DM12) between the amount paid by AWB[xvi] and the amount deposited into Alia's account.[xvii] This difference is likely to be the result of bank fees or similar bank charges having been deducted from the amount remitted by AWB by either the recipient bank or an intermediary bank.[xviii]
On 3 May 2001, Mr Edmonds-Wilson sent a facsimile to Alia providing confirmation of two payments that had been made to Alia. The first was for crane hire in the sum of US$29,400. The second was the payment of DM10,054,797.45 which (according to this facsimile) had been sent on 1 May 2001.[xix] The facsimile confirmed that the payment was for inland transportation fees and listed the eight vessels to which that payment related. It also listed the amount being paid for each vessel. The vessels listed and the amount payable in respect of each of these vessels listed in this facsimile[xx] are the same as the vessels and corresponding amounts listed in AWB's request for payment.[xxi]
On 24 May 2001, Mr Edmonds-Wilson sent a further facsimile to Alia once again advising that on 1 May 2001 DM10,054,797.45 had been remitted to Alia's Deutschmark account and the vessels to which that payment related[xxii] (again consistent with the vessels and corresponding amounts listed in AWB's request for payment).
Following this deposit on 9 May 2001, there is recorded on page IIC-ARC-100612 (page 7417) of the bank statements for Alia's Deutschmark account six transfers having been made from this account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank between 10 May 2001 and 27 May 2001. The total amount transferred was DM7,686,346.
The first transfer was made on 10 May 2001. It was for DM577,468.
The entry on page IIC-ARC-100612 (page 7417) for this transfer records it as being in relation to a particular vessel, the name of which is recorded in that entry. That is the same vessel on which the first shipment under contract A0430 was shipped under a bill of lading dated 5 March 2001. It is also the first of the eight vessels listed in AWB's request for payment[xxiii] and facsimiles of 3 May and 24 May 2001.[xxiv]
The amount paid by AWB to Alia in respect of that vessel was DM578,916.44.[xxv] The amount transferred from Alia's account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank in respect of that vessel was DM577,468.000.[xxvi] This corresponds to 99.75 per cent of the amount received by Alia in respect of that vessel.[xxvii] To put it another way, following this first transfer to the account of the General Maritime Transportation Company, Alia retained DM1,448.44 in its Deutschmark account from the funds that it had received in relation to this first vessel (this being the difference between the amount that it received from AWB in relation to that vessel[xxviii] and the amount that it transferred to the account of the General Maritime Transportation Company with Rafidain Bank in respect of that vessel[xxix]). The amount retained (namely DM1,448.44) represents one quarter of one per cent (or 0.25 per cent) of the amount that Alia received from AWB in relation to this first vessel.[xxx] This is consistent with Mr Al-Absi's evidence[xxxi] that Alia received (retained) a commission of 0.25 per cent of the fees that it collected on the ISCWT's behalf.
The second transfer of funds to the account of the General Maritime Transportation Company with Rafidain Bank was also made on 10 May 2001. It was for DM1,337,288.000.
The entry on page IIC-ARC-100612 (page 7417) for this second transfer also records it as being in relation to a particular vessel, the name of which is recorded in that entry. This is the same vessel which carried AWB's second shipment of wheat in bulk to Iraq under its contract A0430 with the IGB. This wheat was shipped under a bill of lading dated 17 March 2001.[xxxii] It is also the second of the eight vessels listed in AWB's request for payment.[xxxiii]
The amount paid by AWB to Alia in respect of this second shipment (vessel) was DM1,340,640.00.[xxxiv] The amount transferred from Alia's account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank in respect of this was DM1,337,288.000.[xxxv] This corresponds to 99.75 per cent of the amount received by Alia in relation to that second vessel / shipment. Or to put it another way, following this second transfer to the account of General Maritime Transportation Company on 10 May 2001, Alia retained in its Deutschmark account DM3,352 (being the difference between the amount that it received from AWB in relation to this first vessel[xxxvi] and the amount that it transferred to the account of the General Maritime Transportation Company with Rafidain Bank in respect of that vessel[xxxvii]) or 0.25 per cent of the inland transportation fees that Alia received from AWB in relation to this second shipment (consistent with Mr Al-Absi's evidence[xxxviii] as to the amount of commission that was paid to Alia in respect of the fees that it collected on the ISCWT's behalf).
Similar observations to the foregoing can be made in relation to each of the third[xxxix], fourth[xl], fifth[xli] and sixth[xlii] transfers to the credit of the account of the General Maritime Transportation Company with Rafidain Bank appearing on page IIC-ARC-100612 and made between 15 and 27 May 2001.
In relation to each of these transfers:
There were two further transfers of funds from this account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank on 7 June 2001. They were for DM1,004,022.00 and DM1,337,288 respectively.
Although these were made after further deposits into Alia's account on 31 May 2001 and 6 June 2001 respectively (which are discussed in more detail below), the documents produced to this Inquiry reveal that these transfers relate to the earlier deposit of 9 May 2001. In particular, these two entries are transfers from funds received by Alia in respect of the two remaining vessels listed on AWB's request for payment dated 26 April 2001.[xliv]
The entry on page IIC-ARC-100612 for each of these seventh and eighth transfers records that the transfer was made in relation to a particular named vessel. The two vessels named in the entries for these two transfers were both vessels used by AWB to carry shipments of wheat from Australia to Iraq under its contract A0430, on 11 and 12 April respectively. Both vessels are also listed in AWB's payment request.[xlv] They are the last two vessels named.
The amount transferred from Alia's account in relation to each of these two vessels[xlvi] is equal to 99.75 per cent of the amount that Alia received by AWB in relation to each of shipments of wheat to Iraq on these vessels.[xlvii] Similarly, the amount that Alia retained from the amount that it had received from AWB in respect of each vessel[xlviii] following these transfers was one quarter of one per cent (or 0.25 per cent) of the amount that Alia received from AWB in relation to each of these vessels.[xlix]
Page IIC-ARC-100612 (page 7417) of the bank statements for Alia's Deutschmark account with the National Bank of Jordan records that on 9 May 2001 Alia received DM10,054,785.45 into that account.
This entry would appear to record the deposit of DM10,054,797.45 which AWB instructed its bank to transfer from its Deutschmark account to the Deutschmark account of Alia with the Jordan National Bank on 2 May 2001. This transfer was the payment of the first instalment of the inland transportation fees payable in respect of eight shipments which AWB made to Iraq between 5 March and 12 April 2001 under contract A0430.
Page IIC-ARC-100612 also records that between 10 May and 7 June 2001, there were eight transfers of funds by Alia from its Deutschmark account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank. The entry for each of these transfers records the transfer as being in relation to a specific named vessel.
The eight vessels identified as being the vessels in respect of which these eight transfers were made to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank were all used by AWB for the shipment of wheat under its contract A0430 with the IGB. They were also the same eight vessels listed in AWB's request for payment of DM10,054,797.45 made on 2 May 2001.
Moreover, the amount that was transferred by Alia to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank in relation to each of these eight vessels was an amount that was 99.75 per cent of the amount that Alia had received from AWB in relation to each of those vessels (as recorded in AWB's request for payment). Accordingly, following the transfer of funds from its Deutschmark account to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank for each vessel, Alia retained an amount equal to approximately 0.25 per cent (or one quarter of one per cent) of the amount that it had originally received from AWB in respect of that vessel.
Page IIC-ARC-00612 records that on 6 June 2001 there was a further deposit into Alia's Deutschmark account of DM2,077,349.260.[l]
This entry would appear to refer to the transfer and deposit into Alia's Deutschmark bank account of DM2,077,361.26 which AWB paid to Alia in early June 2001. This payment was the first instalment[li] of the inland transportation fees[lii] payable in respect of 2 shipments of wheat in bulk from Australian to Iraq. Both were shipments made under AWB contract A0553.
On 17 May 2001, Alia sent two facsimiles to AWB requesting payment of the inland transportation fees in respect of both of the shipments to which the above payment of DM2,077,361.26 related.[liii] In both facsimiles from Alia, the request for payment was expressed to be according to 'the authorisation from the Iraqi co. for water transport-Baghdad' nos. 3736 and 3737 both dated 12 May 2001.[liv] Both facsimiles were also accompanied by a facsimile from the 'Iraqi Ministry of Transport & Communication, Iraqi State Co. for Water Transport' addressed to Alia and headed 'Inland Trasportatin Cost for Private Sector'.[lv] These facsimiles asked Alia to coordinate with AWB regarding the shipments referred to in each facsimile and to 'arrange to pay to the private sector cost of inland transportation'.[lvi] Presumably these facsimiles from the ISCWT are either the authorisations referred to in Alia's facsimile or issued pursuant to those authorisations. There also appeared towards the end of both of these facsimiles from the ISCWT to Alia the words:
On 24 May 2001, Mr Edmonds-Wilson sent a facsimile to Alia[lviii] confirming details of the payment of inland transportation fees that had been made on 1 May 2001 and relevantly for present purposes, advising that a payment of DM2,077,361.26 had been passed by AWB's finance department and should be remitted to Alia's account shortly. He then set out the details of that payment, recording the two vessels (and thereby shipments) to which it related, the bill of lading dates and the amount being paid in relation to each shipment.[lix]
Also included amongst the documents produced by AWB was a request for payment of DM2,077,361.26 dated 24 May 2001 (being the payment foreshadowed in Mr Edmonds-Wilson's facsimile of that same date).[lx] The payment was requested by Mr Hogan. It was authorised by Mr Ingleby and Mr Goodacre. It also appears to have been signed by Mr Long for Charles Stott. This request for payment identified the two vessels in respect of which this payment related-being the same two vessels referred to in Mr Edmonds-Wilson's facsimile of 24 May 2001.[lxi] The request for payment also identified the amount being paid in respect of the shipment on each vessel-again being the same amounts identified in Mr Edmonds-Wilson's facsimile of 24 May 2001.[lxii]
On 30 May 2001, AWB (Treasury Operations) sent a facsimile to its bank[lxiii] requesting transfer of DM2,077,361.26 from its Deutschmark account with the bank to the credit of Alia (with the Jordan National Bank).[lxiv]
A bank statement for AWB's Deutschmark account confirms the payment of DM2,077,361.26 out of that account on 30 May 2001.[lxv]
This payment of DM2,077,361.26 by AWB appears to have been funded from a deposit (in an identical amount) into AWB's Deutschmark account by AWB Finance Limited the same day on which the transfer was made. This deposit in turn appears to have been of Deutschmarks acquired by AWB as a result of a currency swap using US dollars. In other words, AWB swapped US dollars in order to acquire the DM2,077,361.26 it needed to pay these inland transportation fees in Deutschmark as agreed with the IGB. This is consistent with the proposal outlined in an email from Mr Alvares to Mr Hogan dated 14 February 2001 as to how currency conversions would be treated in relation to payments made under this contract A0553.[lxvi]
Following the deposit of DM2,077,349.26 on 6 June 2001, there are recorded on page IIC-ARC-100612 three transfers from Alia's Deutschmark account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank between 7 and 10 June 2001.
The first two transfers[lxvii] have already been discussed above in the context of the first deposit recorded on page IIC-ARC-100612, namely the deposit of 9 May 2001.
The third transfer was for DM528,326.000. It was on 10 June 2001. The vessel named in the entry on page IIC-ARC-100612 for this transfer coincides with the first of the two vessels listed in both AWB's facsimile of 24 May 2001[lxviii] and AWB's request for payment of DM2,077,361.26 also dated 24 May 2001.[lxix]
Moreover, the amount that AWB paid to Alia in respect of that vessel as part of its payment of DM2,077,361.26 was DM529,661.26.[lxx] The amount that was transferred from Alia's Deutschmark account in relation to that vessel by way of this third transfer was DM528,326.000, which is 99.75 per cent of the amount that Alia received from AWB in respect of that vessel and its shipment. The amount that Alia retained from the funds that Alia received from AWB in respect of the shipment on this named vessel following this third transfer was DM1,335.26, which is equal to 0.25 per cent (or one quarter of one per cent) of the amount that Alia received from AWB in relation to that shipment. This is again consistent with Mr Al-Absi's evidence to Alia having been paid a commission of 0.25 per cent of the inland transportation fees that it received for payment on to the ISCWT.[lxxi]
There is no record on page IIC-ARC-100612 of the transfer to the credit of the account of the General Maritime Transportation Company with Rafidain Bank of funds in relation to the second of the two vessels to which AWB's payment of DM2,077,349.26 relates.[lxxii] That vessel completed discharge at Umm Qasr on 11 June 2001.[lxxiii]
On 28 June 2001, the balance of DM10,784,488.93 then standing in this account was transferred from the account to another account. The translation of the entry for that transfer recorded on page IIC-ARC-100612 reads:
Following this transfer the entry in the column of page IIC-ARC-100612 headed 'Balance in account currency' is '0.000'. This is consistent with the transfer of all of the funds then standing to the balance of that account.
It therefore appears that the whole of the then balance of Alia's Deutschmark account was thereby transferred to its euro account.
It is not possible to say from those pages of Alia's bank statements that have been translated by this Inquiry whether and when Alia transferred to the ISCWT that portion of the inland transportation fees paid by AWB to Alia in respect of the second shipment as part of the DM2,077,361.26. But it may be inferred from the other entries on this bank statement, as discussed above, that those fees were transferred by Alia to ISCWT at some time.
Page IIC-ARC-100612 (page 7417) of the bank statements for Alia's Deutschmark account with the National Bank of Jordan records that on 6 June 2001 DM2,077,349.260 was deposited into that Deutschmark account.
This entry would appear to record the deposit of DM2,077,361.26 which AWB instructed its bank to transfer to Alia's Deutschmark account with the National Bank of Jordan on 1 June 2001, this being the first instalment of the inland transportation fees payable in respect of two shipments under AWB contract A0553.
Page IIC-ARC-100612 also records that on 10 June 2001, there was a transfer of DM528,326.000 from Alia's Deutschmark account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank. The entry on page IIC-ARC-100612 for this transfer identifies the vessel to which the payment relates. It is one of the two vessels whose shipments under contract A0553 were comprised in AWB's payment of DM2,077,361.26.
Furthermore, the amount that was transferred from Alia's Deutschmark account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank in respect of the vessel named in the entry for that transfer appearing on page IIC-ARC-100612 (namely DM528,326.000) was 99.75 per cent of the amount that Alia received from AWB (as part of the deposit of DM2,077,361.26) referable to that same vessel.
Equally, the amount that Alia retained from the funds it received from AWB in relation to that vessel following this transfer to the credit of the account of the General Maritime Transportation Company (namely DM1,335.26) was 0.25 per cent (or one quarter of one per cent) of the amount of the inland transportation fees that it had received from AWB in relation to the shipment carried on that vessel.
Page IIC-ARC-100612 does not however record the transfer by Alia from its Deutschmark account of that portion of AWB's payment of DM2,077,361.26 which was referable to the second of the two vessels named in both Mr Edmonds-Wilson's facsimile of 24 May 2001[lxxiv] and AWB's request for payment.[lxxv] The balance of that account was transferred to Alia's euro account before that transfer was or could be made.
Page IIC-ARC-00612 records that on 10 June 2001 there was a further deposit into Alia's Deutschmark account of DM6,984,567.180.[lxxvi]
This entry would appear to refer to the transfer and deposit into Alia's Deutschmark bank account of DM6,984,579.18 which AWB paid to Alia in early June 2001.
This payment by AWB was made up of two amounts:
On 5 June 2001, AWB (Treasury Operations) sent a facsimile to AWB's bank requesting transfer of DM6,984,579.18 from AWB's Deutschmark account to the credit of Alia's account with the Jordan National Bank.[lxxxi]
On 4 June 2001, Mr Edmonds-Wilson sent a facsimile to Alia advising that DM6,984,579.18 was being remitted to Alia and providing details of the 5 vessels (and thereby shipments) to which it related including the amount payable in respect of each vessel / shipment.[lxxxii]
Following the deposit of this DM6,984,567.180 on 10 June 2001, there are recorded on page IIC-ARC-100612 five transfers from this account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank between 12 and 24 June 2001.
The entry for each of these transfers is expressed to be in relation to a particular named vessel. Each of the vessels named were vessels that were employed by AWB for the carriage of wheat in bulk to Iraq at that time.
The first transfer of these transfers was made on 13 June 2001. It was for DM1,253,985.000.
The vessel named in the entry for this transfer is the same vessel on which the first shipment under contract A0430 was shipped under a bill of lading dated 5 March 2001. It is also:
The transfer appears to be a transfer of funds paid by AWB by way of the second instalment of the inland transportation fees payable in respect of that shipment.
As noted above, the amount that Alia was paid by AWB in relation to that vessel (shipment) was DM1,257,128.13.[lxxxv] The amount that Alia transferred to the credit of the account of the General Maritime Transportation Company with Rafidain Bank in respect of that vessel (shipment) was DM1,253,985.000.[lxxxvi] This is equal to 99.75 per cent of the amount that Alia received from AWB in relation to this vessel (shipment).
Of the DM1,257,128.13 AWB paid to Alia in relation to this vessel (shipment), Alia retained DM3,143.13 (following the transfer of DM1,253,985.000 to the General Maritime Transportation Company). This amount retained is one quarter of one per cent (0.25 per cent) of the amount that AWB paid to Alia. This is consistent with Mr Al‑Absi's evidence as to the amount (and percentage) of the commission that Alia retained from the moneys that it received on behalf of the ISCWT.[lxxxvii]
The remaining transfers of funds from this account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank recorded on page IIC-ARC-100612 were:
The entry on page IIC-ARC-100612 for each of these transfers identifies the vessel (shipment) to which the transfer relates. The four vessels named in the entries for these four transfers were also:
The amount that is recorded on page IIC-ARC-100612 as having been transferred from Alia's account by way of each of these four transfers is the equivalent of 99.75 per cent of the amount that AWB paid to Alia in relation to each of those vessels (shipments), as recorded in both its facsimile of 4 June 2001[xc] and its request for payment of the DM5,727,451.05.[xci]
Page IIC-ARC-100612 (page 7417) of the bank statements for Alia's Deutschmark account with the National Bank of Jordan records that on 10 June 2001, DM6,984,567.180 was deposited into that account.
This entry would appear to record the deposit of DM6,984,579.18 which AWB made to Alia on 5 June 2001, being the second instalment of the inland transportation fees[xcii] payable in respect of the first shipment under AWB contract A0430 and the first instalment of the inland transportation fees[xciii] payable in respect of four shipments under contracts A0552 and A0553.
Page IIC-ARC-100612 also records that following this deposit, there were five transfers from Alia's Deutschmark account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank. The entry for each of these transfers identifies the vessel (and thereby shipment) to which that transfer related. For each transfer, the vessel (and thereby shipment) nominated is one in respect of which the payment of DM6,984,579.18 was made by AWB.
Furthermore, the amount transferred from Alia's account to the credit of the account of the General Maritime Transportation Company with Rafidain Bank by way of each of these five transfers was 99.75 per cent of the amount that Alia received from AWB (as part of the payment of DM6,984,579.18) referable to the vessel named in the entry for that transfer recorded on page IIC-ARC-100612.
On 24 June 2001 there was a further deposit into Alia's Deutschmark account of DM9,265,943.100.[xciv]
This would appear to refer to the transfer and deposit into Alia's Deutschmark bank account of DM9,265,955 which AWB paid to Alia in mid June 2001. This payment was comprised of two amounts, namely:
This payment of DM9,265,955 to Alia was requested by Mr Hogan and authorised by Mr Ingleby and Ms Scales.[xcviii]
On 19 June 2001, AWB (Treasury Operations) sent a facsimile to AWB's bank[xcix] requesting the transfer of DM9,265,955.10 to the credit of Alia's Deutschmark account with the Jordan National Bank.[c]
The Deutschmarks used by AWB to make this payment were acquired as a result of a foreign currency exchange swap that AWB concluded with its bank[ci] on 18 June 2001 pursuant to which AWB exchanged US$4,090,929.40 for the DM9,265,955.10 required to pay Alia.[cii]
On 22 June 2001, Mr Edmonds-Wilson sent a facsimile to the IGB advising that AWB confirmed receipt of payment from the United Nations of the proceeds of the sale of the second and third shipments under contract A0430 and that the balance of the inland transportation fees payable in respect of those two shipments had been remitted to Alia on 19 June 2001.[ciii]
On 23 June 2001, Alia sent an email to Mr Edmonds-Wilson at AWB requesting:
On 25 June 2001, Mr Edmonds-Wilson responded to Alia by email advising that the payment of DM9,265,955.10 made on 19 June 2001 was in respect of four shipments, and setting out the details of those shipments and the amount paid in respect of each.
There are no transfers from Alia's Deutschmark account that appear to be referable to this deposit of DM9,265,943.100 on 24 June 2001 recorded on page IIC-ARC-10612 (page 7417) or the vessels (or shipments) to which that deposit related.
As has already been noted, on 28 June 2001 the balance of DM10,784,488.93 then standing in Alia's Deutschmark account with the National Bank of Jordan was transferred from the account to Alia's euro account. The entry for that transfer recorded in the bank statement (IIC-ARC-100612) is:
It is not possible to identify from the bank statements of Alia that have been translated whether the funds received by Alia as part of the deposit of DM9,265,943.100 on 24 June 2001 were remitted to the ISCWT and if so when and in what amounts.
Euro account, 3 April 2002 to 16 June 2002
Exhibit 948 contains an extract from documents that were produced by Alia for Transportation and General Trade Co. (Alia) to the United Nations Independent Inquiry Committee (IIC) in the course of its investigations and which the United Nations has in turn produced to this Inquiry.
Tab C of Ex 948 contains a bundle of bank statements extracted from those documents. This bundle includes pages 10957[cv] to 10964[cvi] inclusive of the bank statements for a euro account that was maintained in the name of 'Alia for Transportation and General Trade Co.' with the Jordan National Bank, covering the period from 3 April 2002 until 16 June 2002.
Tab D of Ex 948 contains a translation[cvii] of the bank statements behind tab C, including a translation of each of pages 10957[cviii] to 10964.[cix]
Page IIC-ARC-100565 of Ex 948 is page 10957 of the bank statements for Alia's euro account with the National Bank of Jordan and covers the period from 3 April 2002 to 10 April 2002. Page IIC-ARC-100566 is the following page, page 10958, of the bank statements for that same account and covers the period from 10 April 2002 to 21 April 2002.
The third entry on page IIC-ARC-100565 records the deposit on 4 April 2002 of €7,700,735.080 into Alia's euro account with the National Bank of Jordan.
This would appear to be the deposit of €7,700,743.08 which AWB paid to Alia on or about 2 April 2002, being the inland transportation fees payable for three shipments of wheat which AWB made in March 2002 (one shipment under each of its contracts A0784, A0785 and A1112).
On 2 April 2002, AWB's Treasury Operations sent a facsimile to its bank[cx] to transfer €7,700,743.08 from AWB's euro account to Alia (and more particularly to the nominated account of Alia with 'The Jordan National Bank').[cxi]
Bank statements for AWB's euro account record the payment on 2 April 2002 of €7,700,743.08 from that account[cxii] (consistent with the above facsimile). This payment appears to have been funded by the deposit that same day into AWB's euro account of foreign exchange receipts of exactly the same amount as paid to Alia[cxiii] presumably as a result of a US dollar currency swap or exchange.
AWB's internal 'Euro Payment Request' for this transfer is dated 28 March 2002.[cxiv] It identifies the three shipments[cxv] to which this payment relates and the amount being paid in respect of each shipment.[cxvi] The Division requesting this payment was 'International Marketing-Middle East Desk'.[cxvii]
On 7 April 2002 Alia sent an email to AWB stating:
The question posed in this email would appear to have been directed to the deposit of €7,700,735.080 on 4 April 2002 recorded in the third entry on page IIC-ARC-100565.
On 8 April 2000 Mr Edmonds-Wilson responded to Alia by advising that 'the amount of EUR 7,700,743.08'[cxix] was 100 per cent of the inland transport fees payable in respect of three specified vessels, being the same three vessels referred to in the AWB request for payment.[cxx]
There is a slight difference (of €12) between the total amount which AWB instructed its bankers to transfer on 2 April 2002[cxxi] (being also the amount that was deducted from AWB's account[cxxii]) and the amount that is recorded on page IIC-ARC-100565 as having been deposited into Alia's account on 4 April 2002.[cxxiii] However 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.
There are similar slight differences between the amount remitted by AWB to Alia and the deposits recorded in Alia's bank statements in relation to the each of the other deposits noted in this appendix[cxxiv] as well as in relation to the deposits of inland transportation fees into Alia's Deutschmark account considered earlier in this appendix.
Page IIC-ARC-100565 (page 10957) also records that between 8 and 10 April 2002, seven transfers (totalling €2,075,493) were made from Alia's euro account to the credit of the General Maritime Transportation Company account with the Rafidain Bank.
There was also a further transfer of €5,585,072 from this account to the credit of the General Maritime Transportation Company account with the Rafidain Bank on 10 April 2002. This transfer is recorded the following page of the bank statements, namely page IIC-ARC-100566 (page 10958).[cxxv]
Accordingly, within 7 days of the deposit into Alia's account of the €7,700,735.080 recorded in the third entry on page IIC-ARC-100565, a total of €7,660,565 was transferred from that account to the account of the General Maritime Transportation Company at the Rafidain Bank between 8 and 10 April 2002.
None of the entries appearing on pages IIC-ARC-100565 or IIC-ARC-100566 recording these transfers identifies the purpose of the transfer or the vessel, shipment or supplier to which the transfer may relate.[cxxvi]
Nevertheless, these entries all appear to represent the transfer of the €7,700,735.08 deposited in Alia's account on 4 April 2002 and thereby the transfer by Alia of inland transportation fees that have been paid to it by AWB in respect of shipments of wheat to Iraq during the Oil-for-Food Programme.
This is because prior to that deposit, the balance of funds then standing in this euro account[cxxvii] was not sufficient to meet all of the transfers that were subsequently made from that account to the credit of the General Maritime Transportation Company's account at the Rafidain Bank between 8 and 10 April 2002. Nor would either
have been sufficient to fund the total amount transferred from this account to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank between 8 and 10 April 2002.
There is also recorded on IIC-ARC-100566 (page 10958) on 17 April 2002 a further transfer of funds from this euro account of Alia to the credit of the account of the General Maritime Transportation Company with Rafidain Bank. The amount transferred was €1,777,583.000. Again, the entry in the bank statement for this transfer does not identify the purpose of this transfer or the vessel, shipment or supplier to which this transfer may relate.
There is admittedly nothing in these bank statements to indicate that this transfer on 17 April 2002 relates in any way to AWB or to wheat shipped by AWB to Iraq under the Oil-for-Food Programme. Nevertheless, it represents the transfer of a significant amount from that account. It also represents the transfer of a significant portion of the funds then standing in this euro account of Alia, the greater proportion of which (if not all) appear to have come from deposits of inland transportation fees paid by suppliers such as AWB in respect of shipments to Iraq. On their face, these documents appear to be consistent with the evidence given to this Inquiry of Alia's role between July 1999 and March 2003 being one of receiving and in turn passing on (to the ISCWT) inland transportation fees paid by shippers of goods to Iraq.
This document is the translation of page 10960 of the bank statements for the euro account maintained in the name of Alia with the National Bank of Jordan and covers the period from 1 May 2002 to 6 May 2002.
The second entry on page IIC-ARC-100568 (page 10960) records the deposit into Alia's euro account of €2,843,840.20 on 5 May 2002.
This would appear to be the deposit of €2,843,848.20 which AWB paid to Alia on 30 April 2002, being:
On 30 April 2002, AWB's Treasury Operations sent a facsimile to its bank[cxxxi] to transfer €2,843,848.20 from AWB's euro account to Alia (and more particularly to the nominated account of Alia) with 'The Jordan National Bank'.[cxxxii]
Bank statements for AWB's euro account record the payment on 30 April 2002 of €2,843,848.20 from that account[cxxxiii] (consistent with the instructions given in the above facsimile). This payment appears to have been funded by the deposit that same day into AWB's euro account of exactly the same amount that was to be paid to Alia[cxxxiv] again presumably as a result of a US dollar currency swap or exchange. But for that deposit, there would not have been sufficient funds in AWB's euro account as at 30 April 2002 to make this payment to Alia.
AWB's internal 'Euro Payment Request' for this transfer is dated 29 April 2002.[cxxxv] It identifies the two shipments[cxxxvi] to which this payment of €2,843,848.20 relates and the amount being paid in respect of each of these two shipments.[cxxxvii] This payment of this amount and in respect of these two shipments was requested by 'International Marketing-Middle East Desk'.[cxxxviii]
Again there is a slight difference (although this time it is €8) between the amount AWB instructed its bankers to pay on 30 April 2002[cxxxix] (being the same amount that was deducted from AWB's euro account[cxl]) and the amount that is recorded on page IIC-ARC-100568 as having been deposited into Alia's account on 5 May 2002.[cxli] However, this is again likely to be the result of bank fees or similar bank charges having been deducted by the recipient bank or an intermediary bank from the amount remitted by AWB.
Following this deposit of €2,843,840.20 on 5 May 2002, there are recorded on page IIC-ARC-100568 nine (9) transfers of funds (totalling €1,909,970.000) from this euro account of Alia to the credit of the account of the General Maritime Transportation Company account with the Rafidain Bank.
None of the entries for any of these transfers identifies the purpose of the transfer or the vessel, shipment or supplier to which the transfer may relate.
It is not possible from the information on page IIC-ARC-100568 to link any of these transfers to any particular deposit appearing on that page (or any other bank statement for this account) or to any particular shipment in respect of which inland transportation fees have been paid to Alia and deposited into its euro account.
Nevertheless, these entries represent the transfer of a significant portion of the funds standing in this euro account of Alia, the source of which appears to be deposits of inland transportation fees (such as those identified by the entries considered in this appendix) paid by shippers such as AWB to Alia. This is consistent with the evidence before this Inquiry of Alia's role between July 1999 and March 2003 being one of receiving and in turn passing on (to the ISCWT) inland transportation fees paid by shippers of goods to Iraq.
This document is a translation of page 10962 of the bank statements for a euro account maintained in the name of Alia with the National Bank of Jordan and covers the period from 13 May 2002 to 26 May 2002.
There is (on the second page of the translation of this page) an entry recording the deposit of €3,202,521.090 into this account on 19 May 2002.
This would appear to be the deposit of €3,202,529.09 which AWB paid to Alia on 15 May 2002 being:
On 15 May 2002, AWB's Treasury Operations sent a facsimile to its bank[cxlii] to transfer €3,202,529.09 from AWB's euro account to Alia, to its nominated account with 'The Jordan National Bank'.[cxliii]
Bank statements for AWB's euro account record the payment on 15 May 2002 of €3,202,529.09 from that account[cxliv] (consistent with the above facsimile). This payment appears to have been funded by the deposit that same day into AWB's euro account of €26,105,773.35.[cxlv] This deposit was used to cover both the payment of €3,202,529.09 to Alia and another payment of €22,903,244.26 from this account. These total of two payments is exactly equal to the amount of deposited. The source of the deposit is not apparent from the bank statement. In particular it is not apparent from the bank statement whether it was the product of a currency swap or the receipt of euros from some other source. But whatever the source of this deposit, without it, AWB would not have been able to make the payment of €3,202,529.09 to Alia from this account.
AWB's internal 'Euro Payment Request' for this payment is dated 14 May 2002.[cxlvi] It identifies the two shipments[cxlvii] to which this payment of €3,202,529.09 relates and the amount being paid in respect of each of these two shipments.[cxlviii] Payment of this amount in respect of these two shipments was requested by 'International Marketing-Middle East Desk'.[cxlix]
On 20 May 2002, Alia sent an email to Mr Edmonds-Wilson advising:
The amount that Alia advised it had received coincided with the amount of the deposit into Alia's euro account the previous day, as recorded on page IIC-ARC-100570. Alia's inquiry of AWB would therefore appear to have been in relation to this deposit.
In an email dated 21 May 2002 Mr Edmonds-Wilson responded to Alia, advising that the 'The amount of EUR3,202,529.09'[cli] was 100 per cent of the inland transportation fees for the shipment under contract A1112 and the balance for the other shipment in respect of which an adjustment was being made.
Although there is again a slight difference (namely €8) between the amount that AWB instructed its bank to pay to Alia on 15 May 2002[clii] (also being the amount that was paid out of AWB's account[cliii]) and the amount that is recorded on page IIC-ARC-100570 as having been deposited into Alia's account on 19 May 2002[cliv], this is again likely to be the result of bank fees or similar bank charges having been deducted by the recipient bank or an intermediary bank from the amount remitted by AWB.
Following this deposit of €3,202,521.090 on 19 May 2002, there is recorded on page IIC-ARC-100570 the transfer from this account on 21 May 2002 of €3,677,533.000 to the credit of the account of the General Maritime Transportation Company account with the Rafidain Bank.
This was followed by a further five transfers totalling €372,070 from this account on 22 May 2002 also to the credit of the account of the General Maritime Transportation Company account with the Rafidain Bank.
None of the entries for any of these six transfers identifies the purpose of the transfer or the vessel, shipment or supplier to which the transfer may relate.
It is not possible from the information recorded on this page IIC-ARC-100570 to link any of these transfers either to any particular deposit into this account or to any particular shipment(s) in respect of which inland transportation fees have been paid to Alia and deposited into this account (including any shipments of AWB).
There is also recorded on page IIC-ARC-100570 prior to the deposit of €3,202,521.090 on 19 May 2002 five (5) earlier transfers (totalling €2,260,349) from this account to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank on 13 and 14 May 2002. Moreover the preceding page of the bank statements for this account[clv] records a further four transfers (totalling €371,596) from this account to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank on 13 May 2002. It also records eight (8) transfers from this account to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank made on 8 and 9 May 2002.
All of these entries represent the transfer of significant amounts from this euro account of Alia. They also represent the transfer of a significant portion of the funds standing in this euro account from time to time. The greater proportion of the funds so transferred (if not all of them) appear to come from inland transportation fees paid to Alia by suppliers such as AWB and deposited into this account. On their face, these pages from the bank statements for this account are consistent with the evidence given before this Inquiry of Alia's role at this time being one of receiving and passing on (to the ISCWT) inland transportation fees in respect of shipments to Iraq.
Page UNO.0001.0083 in Exhibit 81 dated 12 June 2002 records the receipt by the ISCWT from Alia of US$2,695,519.85 and its distribution between the various Iraqi government departments and instrumentalities.
That amount was the US dollar equivalent of €2,779,592.00 said to have been remitted by Alia from that part of the €3,202,529.09 which AWB paid to Alia on 15 May 2002 which was referable to the shipment made under contract A1112 (being the €2,786,563.49 paid by AWB in respect of that shipment as disclosed earlier in this appendix).
The banks statements for Alia's euro account comprised in Ex 948 do not disclose the transfer from Alia to the ISCWT of the €2,779,592.00 or any other amount referred to on page UNO.0001.0083 in Exhibit 81. An undated document produced to this Inquiry by the United Nations headed 'Australian Wheat Board payments' records that an amount of €2,279,592 was transferred by Alia to the ISCWT in respect of this shipment and that this was on 23 June 2002.[clvi] No translated bank statements for Alia's euro account as at that date are included in Exhibit 948. It is therefore not possible to verify from that exhibit or those of Alia's bank statements that have been produced to this Inquiry whether such a transfer was made and when.
Nevertheless, it does appear from the documents that the United Nations has produced to this Inquiry (and considered in more detail in Appendix 25) that funds were remitted by Alia to ISCWT in respect of this shipment and moreover were distributed between various Iraqi government departments and agencies in the amounts set out on page UNO.0001.0083 of Exhibit 81.
This document is a translation of page 10963 of the bank statements for a euro account maintained in the name of Alia with the National Bank of Jordan and covers the period from 27 May 2002 to 10 June 2002.
The third entry on this page is an entry records the deposit of €5,220,113.610 into this account on 27 May 2002.
This would appear to be the deposit of €5,220,121.61 which AWB paid to Alia on 24 May 2002 being 100 per cent of the inland transportation fees payable for two shipments of wheat to Iraq, one under contract A1112 and one under contract A1111.
On 24 May 2002, AWB's Treasury Operations sent a facsimile to its bank[clvii] to transfer €5,220,121.61 from its euro account to Alia (and more particularly to Alia's nominated account with 'The Jordan National Bank').[clviii]
Bank statements for AWB's euro account record the payment on 24 May 2002 of this amount of €5,220,121.61 from that account[clix] (consistent with the above facsimile). This payment appears to have been funded by the deposit into AWB's euro account that very same day of a foreign exchange receipt of exactly the same amount as was paid to Alia (namely €5,220,121.61).[clx] Both the deposit and transfer are recorded in the bank statement in the name of AWB Finance Limited.[clxi] Presumably the deposit of these funds in this euro account was the result of a US dollar currency swap or exchange, made in order to obtain the euros necessary to make the payment to Alia.
AWB's internal 'Euro Payment Request' for this transfer to Alia of €5,220,121.61 is dated 22 May 2002.[clxii] It identifies the two shipments[clxiii] to which this payment of €5,220,121.61 relates and the amount being paid in respect of each of these two shipments.[clxiv] This payment of this amount and in respect of these two shipments was requested by 'International Marketing-Middle East Desk'.[clxv]
On 27 May 2002, Alia sent an email to Mr Edmonds-Wilson advising:
The amount that according to this email Alia had received coincides with the amount of the deposit of €5,220,113.610 into Alia's euro account on 27 May 2002 recorded on page IIC-ARC-100571.
The following day, in an email dated 28 May 2002 and timed 8:45 am Mr Edmonds-Wilson responded to Alia's request, referring Alia to an email that Mr Edmonds-Wilson had earlier sent in relation to two named vessels.[clxvii] This would appear to be a reference back to an email that Mr Edmonds-Wilson had 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 relation to each shipment.
Although there is again a slight difference (namely €8) between the amount that AWB instructed its bank on 24 May 2002 to transfer to Alia's account with the Jordan National Bank[clxviii] (being the same amount that is recorded in AWB's bank statement for its euro account as having been paid from that account that same day[clxix]) and the amount that is recorded on page IIC-ARC-100571 as having been deposited into Alia's euro account on 27 May 2002[clxx], this is again 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.
Page IIC-ARC-100571 records that following this deposit of €5,220,113.610 on 27 May 2002, there were five (5) transfers (totalling €4,584,056) from this account to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank between 28 May 2002 and 2 June 2002. These included two large transfers, both made on 2 June 2002. The first was of €1,353,390.000. The second was of €2,287,720.000.
Page IIC-ARC-100571 also records that on 5 June 2002, there were two further transfers from this account to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank. These were of €630,370 and €443,712 respectively.
It is not possible from the information recorded on this page IIC-ARC-100571 to link any of these seven transfers either to any particular deposit into this account or to any particular shipment(s) in respect of which inland transportation fees may have been deposited into this account.
Nevertheless these transfers (in particular the two recorded on 2 June 2002) represent the transfer of both significant amounts from this account and a significant portion of the funds standing in this euro account at the time these transfers were made, the greater proportion of which funds appear to have come from the deposit into this account of inland transportation fees paid by suppliers such as AWB.
Page UNO.0003.4892 of Exhibit 81 records the receipt from Alia of US$2,241,402.98.
This is the US dollar equivalent of the remittance by Alia in euros of a substantial portion of the funds that it received from AWB in respect of a shipment under contract A1111. This is the same shipment that comprises part of the €5,220,121.610 that was transferred by AWB to Alia's euro account with the Jordan National Bank on 27 May 2002. AWB paid to Alia €2,317,140.00 for the inland transportation fees in respect of this shipment.[clxxi]
The undated document produced to this Inquiry by the United Nations headed 'Australian Wheat Board payments' records that an amount of €2,317,136 was received by Alia in respect of this shipment.[clxxii] This is €4 less than the amount AWB paid (which is in turn half of the €8 difference between the total amount paid by AWB on 24 May 2002[clxxiii] and the amount that is recorded on page IIC-ARC-100570 as having been deposited into Alia's euro account).[clxxiv]
This same undated document also records that €2,320,979 was transferred by Alia from those funds.[clxxv]
It is not possible to locate any entry (or entries) in the bank statements comprised in Exhibit 948 reflecting that transfer.
The date given for this transfer in the undated document[clxxvi] is 24 June 2002. No translated bank statements for Alia's euro account as at that date are included in Exhibit 948. It is therefore not possible to verify from that exhibit or those of Alia's bank statements that have been produced to this Inquiry whether such a transfer was made and when.
Nevertheless, it seems clear from the documents that the United Nations has produced to this Inquiry (and considered in more detail in Appendix 25) that funds were remitted by Alia in respect of this shipment and moreover that these funds were distributed between various Iraqi government departments and agencies in the amounts set out on page UNO.0003.4892 in Exhibit 81.
This document is the translation of page 10964 of the bank statements for a euro account maintained in the name of Alia with the National Bank of Jordan and covers the period from 10 June 2002 to 16 June 2002.
On the second page of the translation of this page (behind tab D of Exhibit 948) there is recorded a deposit of €8,443,120.210 into this account on 13 June 2002.
This would appear to be the deposit of €8,443,128.21 which AWB paid to Alia on 11 June 2002 being 100 per cent of the inland transportation fees payable for three shipments of wheat to Iraq, two under contract A1112 and one under contract A1111.
On 11 June 2002, AWB's Treasury Operations sent a facsimile to its bank[clxxvii] to transfer €8,443,128.21 from its euro account to Alia (or more particularly to Alia's nominated account with 'The Jordan National Bank').[clxxviii]
Bank statements for AWB's euro account record the transfer on 11 June 2002 of €8,443,128.21 from that account[clxxix] (consistent with the above facsimile). This payment appears to have been funded by the deposit that same day into AWB's euro account of foreign exchange receipts of exactly the same amount as paid to Alia.[clxxx] The deposit (credit) of these funds is recorded in the bank statement as against AWB; the transfer (debit) is recorded in the bank statement as against AWB Finance Limited.[clxxxi] Given, that the amount deposited and transferred from this account are identical, presumably the funds were deposited into this account in order for this payment to Alia to be made by AWB.
AWB's internal 'Euro Payment Request' for this transfer is dated 7 June 2002.[clxxxii] It identifies the three shipments[clxxxiii] to which this payment of €8,443,128.21 relates and the amount being paid in respect of each of these three shipments.[clxxxiv] This payment of this amount and in respect of these two shipments was requested by 'International Marketing-Middle East Desk'.[clxxxv]
On 6 June 2002, Alia sent an email to Mr Edmonds-Wilson requesting[clxxxvi]:
and then specifying three vessels.
The three vessels nominated by Alia were the same three vessels identified in AWB's 'Euro Payment Request' of 7 June 2002 for the payment of €8,443,128.21.[clxxxvii]
On 7 June 2002, Mr Edmonds-Wilson replied to Alia by email advising that an amount of €8,443,128.21 was being prepared in relation to the three vessels nominated in Alia's email and would be remitted 'early next week'. Mr Edmonds-Wilson concluded his email by asking Alia to:
On 9 June 2002, Alia sent a further email to Mr Edmonds-Wilson stating:
The reference to '8443128 Euro' is presumably taken from Mr Edmonds-Wilson's email of 7 June 2002.
On 11 June 2002 Mr Edmonds-Wilson replied in a further email to Alia providing a breakdown of the amount of €8,443,128.21 as between the three vessels nominated in Alia's email of 6 June 2002[cxc], being the same three vessels identified in AWB's internal 'Euro Payment Request'.[cxci]
Although there is again a slight difference (namely €8) between the total amount which AWB instructed its bank to transfer to Alia's euro account with the Jordan National Bank on 11 June 2002[cxcii] (being the same amount which the bank statements for AWB's euro account record as having been paid from out of that account on 11 June 2002[cxciii]) and the amount recorded on page IIC-ARC-100572 as having been deposited into Alia's account on 13 June 2002[cxciv], this is again 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.
Following this deposit of €8,443,120.210 on 13 June 2002, there are recorded on page IIC-ARC-100572 eleven (11) transfers from this account to the credit of the account of the General Maritime Transportation Company with the Rafidain Bank on 16 June 2002.
Two of these transfers were for €1,966,189.000 and €2,236.000 respectively. The entries for each of these transfers describe the transfers as being for 'two vessels'. However the names of the two vessels were not identified in either entry.
The entry for a third transfer states that the transfer was for the vessel Al Nawwaf. This was not a vessel chartered or otherwise employed by AWB for the carriage of its wheat during this period. This transfer therefore does not relate to AWB or any of its shipments and would appear to relate to another shipper.
Although the entries for two other transfers on this page (being for €105,367 and €560,729 respectively) were each said to be for 'the vessel', the name of the particular vessel to which each transfer relates is not recorded.
The entry for one other transfer on this page was said to be for '40*1 feet of plastic'. This would appear not to relate to AWB or any AWB shipment. The entry for another transfer on this page states that the transfer was in respect of 'the supplier Laiex Company'. Again, this transfer would appear to have nothing to do with AWB or any of AWB's shipments of wheat.
The entries for the remaining transfers on this page suggest that these transfers were in relation to goods that had been shipped in containers (and as such would again have nothing to do with AWB or its shipments of wheat to Iraq which were shipped in bulk).
It is not possible from the information recorded on page IIC-ARC-100572 to link any of the abovementioned transfers to any particular deposit into this euro account of Alia (including the deposit made on 13 June 2002 of inland transportation fees paid by AWB) or more particularly to any of AWB's shipments of wheat to Iraq in respect of which inland transportation fees were paid to Alia.
Nevertheless, it can be said that the various transfers recorded on this page include the transfer of significant amounts from this euro account of Alia. Moreover, they also represent the transfer of a significant portion of the funds standing to the credit of Alia in this euro account, the greater proportion of which funds (if not all of them) appear to come from the payment to Alia of inland transportation fees by suppliers such as AWB and the deposit of those inland transportation fees into this euro account.
[i] Obtained by this Inquiry.
[ii] Ex 141, WST.0007.0001 at 0002, para. 7; see also the findings of the IIC recounted in Chapter 26.
[iii] Of DM31.92 per tonne per shipment (see Ex 160, AWB.0144.0220) and Ex 1462, AWB.5049.0240_R.
[iv] This being the first of the contracts that AWB concluded in respect of which the additional 10% after-sales-service fee was payable and reimbursement of that fee was included as part of the contract price.
[v] Ex 1462, AWB.0001.0366_R
[vi] See Chapter 26.
[vii] Ex 1462, AWB.0001.0366_R.
[viii] Ex 1462, AWB.0006.0041_R.
[ix] Ex 1462, AWB.0006.0041_R. The instruction to AWB's bank was in fact made the following day, 2 May 2001 (Ex 1462, AWB.0164.0212_R).
[x] Commonwealth Bank of Australia.
[xi] Ex 1462, AWB.0164.0212_R.
[xii] Ex 1462, AWB.0164.0212_R.
[xiii] Rather than the Egyptian Arab Land Bank, as the US dollar payments had been.
[xiv] Ex 1462, AWB.0090.0277_R, AWB.0090.0283_R, AWB.0090.0294_R, AWB.0055.0498_R, AWB.0090.0362_R.
[xv] Ex 1462, AWB.0164.0214_R.
[xvi] DM10,054,797.64.
[xvii] DM10,054,785.450.
[xviii] There is a similar difference (of DM12) between the amount remitted by AWB and the amount recorded as having been received by Alia in relation to each of the other three deposits recorded on this bank statement. There is also a similar difference of €8 or €12 between the inland transportation fees remitted by AWB in euros and the deposit of those fees into Alia's euro account.
[xix] Ex 1462, AWB.0001.0170_R.
[xx] Ex 1462, AWB.0001.0170_R.
[xxi] Ex 1462, AWB.0001.0366_R.
[xxii] Ex 1462, AWB.0001.0176_R.
[xxiii] Ex 1462, AWB.0001.0366_R.
[xxiv] Ex 1462, AWB.0001.0170_R, AWB.0001.0176_R.
[xxv] Ex 1462, AWB.0001.0366_R.
[xxvi] Ex 948, IIC-ARC-100612.
[xxvii] That is, DM577,468.00/DM578,916.44 = 0.9975 or 99.74%.
[xxviii] DM578,916.44; Ex 1462, AWB.0001.0366_R.
[xxix] DM577,468.000 (IIC-ARC-100612).
[xxx] Namely DM578,916.44.
[xxxi] Ex 141, WST.0007.0001 at 0002, para. 7.
[xxxii] Ex 1462, AWB.0006.0002_R.
[xxxiii] Ex 1462, AWB.0001.0366_R.
[xxxiv] Ex 1462, AWB.0001.0366_R.
[xxxv] Ex 948, IIC-ARC-100612.
[xxxvi] DM1,340,640.00; Ex 1462, AWB.0001.0366_R.
[xxxvii] DM1,337,288.00 (IIC-ARC-100612).
[xxxviii] Ex 141, WST.0007.0001 at 0002, para. 7.
[xxxix] For DM1,539,787.000 (IIC-ARC-100612).
[xl] For DM901,088.000 (IIC-ARC-100612).
[xli] For DM1,706,865.000 (IIC-ARC-100612).
[xlii] For DM1,623,850.000 (IIC-ARC-100612).
[xliii] Ex 1462, AWB.0001.0366_R.
[xliv] Ex 1462, AWB.0001.0366_R.
[xlv] Ex 1462, AWB.0001.0366_R.
[xlvi] Namely DM1,004,022 and DM1,337,288 respectively
[xlvii] Namely DM1,006,539.74 and DM1,340,640 respectively (as recorded in Ex 1462, AWB.0001.0366_R).
[xlviii] Namely DM2,517.74 and DM3,352 respectively.
[xlix] Namely DM1,006,539.74 and DM1,340,640.00.
[l] See third entry on the second page of the translation.
[li] Of DM29.48 per tonne per shipment.
[lii] Including the additional 10% after-sales-service fee.
[liii] Ex 1464, AWB.0009.0102_R and AWB.0009.0112_R.
[liv] Ex 1464, AWB.0009.0102_R and AWB.0009.0112_R.
[lv] Ex 1464, AWB.0091.0050_R and AWB.0002.0031_R.
[lvi] Ex 1464, AWB.0091.0050_R and AWB.0002.0031_R.
[lvii] Ex 1464, AWB.0091.0050_R and AWB.0002.0031_R.
[lviii] Ex 1464, AWB.0091.0050_R and AWB.0002.0031_R.
[lix] Namely DM529,661.26 and DM1,547,700 respectively.
[lx] Ex 1464, AWB.0009.0103_R.
[lxi] Ex 1462, AWB. 0001.0176_R.
[lxii] Ex 1462, AWB. 0001.0176_R.
[lxiii] Commonwealth Bank of Australia.
[lxiv] Ex 1464, AWB.0079.0101_R.
[lxv] Ex 1464, AWB.0162.0130_R.
[lxvi] Ex 1463, AWB.0137.0108_R at 0109_R; Mr Alvares wrote: 'For your information when payment for Inland Transport Fee of DM14.00 per tonne is required to be made (i.e. 15 days after BOL date). A request will have to be made Treasury Division as and when required. Treasury Div will thereafter to a Currency Swap i.e. Buy DM in the Spot market (to pay the Inland Transport Co) and Seel the DM forward to the date, when funds are expected from United Nations i.e. 70/80 days later.' The reference to 'DM 14.00' above should be read as a reference to the payment of the first instalment of the trucking fees of US$14 per tonne payable in Deutschmark.
[lxvii] Namely for DM1,004,022.000 and for DM1,337,288.000.
[lxviii] Ex 1462, AWB. 0001.0176_R.
[lxix] Ex 1464, AWB.0009.0103_R.
[lxx] As recorded in both AWB's facsimile of 24 May 2001 (Ex 1464, AWB.0001.0176_R) and AWB's request for payment (Ex 1464, AWB.0009.0103_R).
[lxxi] Ex 141, WST.0007.0001.
[lxxii] The amount that should have been transferred would have been approximately DM1,512,876.75 (being 99.75% of the amount paid by AWB in relation to that vessel).
[lxxiii] See for example the reference to that vessel Ex 1464, AWB.0091.0243_R.
[lxxiv] Ex 1462, AWB. 0001.0176_R.
[lxxv] Ex 1464, AWB.0009.0103_R.
[lxxvi] See the seventh compete entry on the second page of the translation of this page from Tab C.
[lxxvii] Including the additional 10% after-sales-service fee.
[lxxviii] Ex 1462, AWB.0164.0220_R.
[lxxix] Including the additional 10% after-sales-service fee.
[lxxx] Ex 1464, AWB.0164.0221_R.
[lxxxi] Commonwealth Bank of Australia.
[lxxxii] Ex 1462, AWB.0001.0180_R.
[lxxxiii] Ex 1462, AWB.0001.0180_R.
[lxxxiv] Ex 1462, AWB.0164.0220_R.
[lxxxv] Ex 1462, AWB.0164.0220_R.
[lxxxvi] Ex 948, IIC-ARC-100612 (page 2 of the translation).
[lxxxvii] Ex 141, WST.0007.0001.
[lxxxviii] Ex 1462, AWB.0001.0180_R.
[lxxxix] Ex 1464, AWB.0164.0221_R.
[xc] Ex 1462, AWB.0001.0180_R.
[xci] Ex 1464, AWB.0164.0221_R.
[xcii] Including the additional 10% after-sales-service fee.
[xciii] Including the additional 10% after-sales-service fee.
[xciv] See third entry on the third page of the translation of page IIC-ARC-100612.
[xcv] Including the additional 10% after-sales-service fee.
[xcvi] Including the additional 10% after-sales-service fee.
[xcvii] Ex 1462, AWB.0079.0107_R.
[xcviii] Ex 1462, AWB.0079.0107_R.
[xcix] Commonwealth Bank of Australia.
[c] Ex 1462, AWB.0079.0106_R.
[ci] Commonwealth Bank of Australia.
[cii] Ex 1462, AWB.0144.0376_R.
[ciii] Ex 1462, AWB.0091.0243_R.
[civ] Ex 1462, AWB.0001.0218_R.
[cv] Ex 948, IIC-ARC-100565.
[cvi] Ex 948, IIC-ARC-100572.
[cvii] Obtained by this Inquiry.
[cviii] Ex 948, IIC-ARC-100565.
[cix] Ex 948, IIC-ARC-100572.
[cx] The Commercial Bank of Australia.
[cxi] Ex 1468, AWB.0161.0059_R.
[cxii] Ex 1468, AWB.0161.0061_R.
[cxiii] Ex 1468, AWB.0161.0061_R.
[cxiv] Ex 1468, AWB.0161.0060_R.
[cxv] By vessel name, tonnage shipped, contract number and bill of lading date
[cxvi] namely €2,264,038.00 in relation to contract A0784, €2,751,607.20 in relation to contract A0785 and €2,665,097.88 in relation to contract A1112.
[cxvii] Ex 1468, AWB.0161.0060_R.
[cxviii] Ex 1468, AWB.0001.0264_R.
[cxix] Referring to the amount that AWB had paid rather than the amount referred to in Alia's email.
[cxx] Ex 1468, AWB.0161.0060_R.
[cxxi] That is-€7,700743.08.
[cxxii] Ex 1468, AWB.0161.0061_R.
[cxxiii] That is-€7,700,735.080.
[cxxiv] Although in the other transactions noted in this appendix, these differences are of €8 and not the €12 found in relation to this transaction.
[cxxv] This is the first entry recorded on page 10958 (being page IIC-ARC-100566).
[cxxvi] Compare the corresponding entries appearing page 7417 of Alia's Deutschmark bank statements (being Ex 948, IIC-ARC-100612).
[cxxvii] Namely €1,712,611.62.
[cxxviii] Namely €2,044,513.09.
[cxxix] This payment was made on the total amount of the wheat shipped on board the relevant vessel, although not all of that wheat was discharged in Iraq (Ex 1468, AWB.0143.0198_R). Accordingly, an adjustment was made to the inland transportation fees paid to Alia in relation to later shipments to take account of inter alia the overpayment of inland transportation fees on this occasion (see Ex 1468, AWB.0001.0276_R).
[cxxx] Ex 1468, AWB.0001.0269_R.
[cxxxi] Commercial Bank of Australia.
[cxxxii] Ex 1468, AWB.0161.0067_R.
[cxxxiii] Ex 1468, AWB.0161.0061_R.
[cxxxiv] Ex 1468, AWB.0161.0061_R.
[cxxxv] Ex 1468, AWB.0161.0068_R.
[cxxxvi] By vessel name, tonnage shipped, contract number and bill of lading date.
[cxxxvii] Namely €2,825,400 in respect of the shipment under contract A1112 and €18,448.20 in respect of the shipment under contract A0785.
[cxxxviii] Ex 1468, AWB.0161.0068_R.
[cxxxix] €2,843,848.20.
[cxl] Ex 1468, AWB.0161.0069_R.
[cxli] €2,843,840.20.
[cxlii] Commercial Bank of Australia.
[cxliii] Ex 1468, AWB.0079.0062_R.
[cxliv] Ex 1468, AWB.0161.0078_R.
[cxlv] Ex 1468, AWB.0161.0078_R.
[cxlvi] Ex 1468, AWB.0079.0063_R.
[cxlvii] By vessel name, tonnage shipped, contract number and bill of lading date.
[cxlviii] Namely €2,786,563.49 in respect of the shipment under contract A1112 and €415,965.60 in respect of the payment that was an adjustment of inland transportation fees that had been earlier paid in respect of a shipment under contract A1111.
[cxlix] Ex 1468, AWB.0079.0063_R.
[cl] Ex 1468, AWB.0001.0271_R.
[cli] Being the amount that AWB instructed its bankers to transfer to Alia's account with the Jordan National Bank.
[clii] Namely €3,202,529.09.
[cliii] Ex 1468, AWB.0161.0078_R.
[cliv] Namely €3,202,521.090.
[clv] Namely page IIC-ARC-100569 (page 10961) covering the period from 6 to 13 May 2002.
[clvi] Ex 1377, UNO.0003.4852 (IIC-ARC-004995).
[clvii] Commercial Bank of Australia.
[clviii] Ex 1468, AWB.0079.0064_R.
[clix] Ex 1468, AWB.0161.0082_R.
[clx] Ex 1468, AWB.0161.0082_R.
[clxi] Ex 1468, AWB.0161.0082_R.
[clxii] Ex 1468, AWB.0079.0065_R.
[clxiii] By vessel name, tonnage shipped, contract number and bill of lading date.
[clxiv] Namely €2,902,981.61 in respect of the shipment under contract A1112 and €2,317,140.00 in respect of the shipment under contract A1111.
[clxv] Ex 1468, AWB.0079.0065_R.
[clxvi] Ex 1468, AWB.0001.0272_R.
[clxvii] Ex 1468, AWB.0001.0272_R.
[clxviii] Namely €5,220,121.61; Ex 1468, AWB.0079.0064_R.
[clxix] Ex 1468, AWB.0161.0082_R.
[clxx] Namely €5,220,113.610.
[clxxi] Ex 1468, AWB.0079.0065_R.
[clxxii] Ex 1377, UNO.0003.4852 (IIC-ARC-004995).
[clxxiii] Namely €5,220,121.61; Ex 1468, AWB.0079.0064_R.
[clxxiv] Namely €5,220,113.61.
[clxxv] Ex 1377, UNO.0003.4852 (IIC-ARC-004995).
[clxxvi] Ex 1377, UNO.0003.4852 (IIC-ARC-004995).
[clxxvii] Commercial Bank of Australia.
[clxxviii] Ex 1468, AWB.0079.0026_R.
[clxxix] Ex 1468, AWB.0161.0088_R.
[clxxx] Ex 1468, AWB.0161.0088_R.
[clxxxi] Ex 1468, AWB.0161.0088_R.
[clxxxii] Ex 1468, AWB.0079.0027_R.
[clxxxiii] By vessel name, tonnage shipped, contract number and bill of lading date.
[clxxxiv] Namely €2,842,020 and €2,842,574 for the two shipments under contract A1112 and €2,758,534.21 for the shipment under contract A1111.
[clxxxv] Ex 1468, AWB.0079.0027_R.
[clxxxvi] Ex 1468, AWB.0001.0274_R at 0275_R.
[clxxxvii] Ex 1468, AWB.0079.0027_R.
[clxxxviii] Ex 1468, AWB.0001.0274_R.
[clxxxix] Ex 1468, AWB.0001.0274_R.
[cxc] Ex 1468, AWB.0001.0274_R.
[cxci] Ex 1468, AWB.0079.0027_R.
[cxcii] Namely €8,443,128.21; Ex 1468, AWB.0079.0026_R.
[cxciii] Ex 1468, AWB.0161.0088_R.
[cxciv] Namely €8,443,120.21.
