New AWB inquiry gets thumbs down

The government and Labor are in agreement - the Iraq oil-for-food scandal has been sufficiently investigated and parliament should take the matter no further.

In a report to the Senate, Liberal Senator Ian Macdonald and Labor Senator Joe Ludwig said this had already examined by a royal commission, a parliamentary inquiry, the Australian Federal Police and Australian Securities and Investments Commission.

That resulted in two former AWB officials paying big fines and facing bans from holding corporate positions.

The Greens think there should be another broad inquiry by the Australian Commission for Law Enforcement Integrity into why AFP failed to properly investigate and prosecute foreign bribery.

They also called for consideration of a federal corruption investigation body.

The oil-for-food scandal dates back to 1996 when the United Nations eased tough sanction to allow Iraq to sell oil provided proceeds were used to buy food.

Subsequently Canadian farmers complained that AWB, formerly the government-owned Australian Wheat Board, was paying kickbacks to Iraqi officials in return for wheat deals.

In 2009, the AFP dropped their investigation. Subsequently, ASIC took actions against former AWB officials under the Corporations Act, imposing large fines and bans on holding company positions.

The majority government and opposition report said it appeared this Senate committee inquiry was generated by "new evidence" in a document tendered to the Federal Court in 2010 in which AWB allegedly admitted making payments, contrary to earlier evidence.

"The majority of the committee is persuaded that this matter should not further exercise the resources of the federal parliament," they said.

Committee chair Greens Senator Penny Wright said the investigation by the AFP's Oil for Food Taskforce cost millions but did not result in a prosecution or a single charge being laid.