Iraq Trade Minister Tells Australia "We are not corruption-free yet"

This is an interesting sidelight from Australia - the Iraqi Minister of Trade saying that he didn't think there would be a repeat of the $300-million bribe paid by the Australia Wheat Board (AWB) to Saddam Hussein to get a wheat supply monopoly...

My favorite quote was when he said "Iraq is no longer imposing bribes on companies outside the country".

Instead, general procurement practice in Iraq is that they don't demand direct bribes from external sources, but instead ask that payments by the Iraqi government for vendor services be paid through a middle man or company who siphons off a percentage for the required kickbacks, then pays the vendor the remainder. Thus the vendor overcharges, and the siphoned bribe is hidden in the non-competitive contract pricing given to the vendor.
vj

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from:
http://www.news.com.au/story/0,23599,22601782-1702,00.html

We're not corruption-free yet: Iraq minister

By Jessica Marszalek

October 17, 2007 04:07pm
Article from: AAP

THE Iraq Government says it cannot guarantee a repeat of the Australian Wheat Board (AWB) scandal would never happen, but says it is increasingly unlikely as the country battles against corruption.

Iraq Trade Minister Abdul Falah Al-Sudani met with Australia's Trade Minister Warren Truss in Brisbane today to discuss export opportunities and the rebuilding of the wheat trade between the two countries after last year's scandal.

The AWB lost its monopoly on wheat exports after it was revealed the export body paid $300 million in illegal kickbacks to former Iraqi dictator Saddam Hussein's regime under the UN oil-for-food program.

Asked whether he could guarantee the scandal would never repeat itself, Dr Al-Sudani said there was always the possibility it would.

"There are possibilities in every time, but I think the trust between us and Australia is growing and is very strong,'' he said.

He said "certain circumstances'' which allowed the scandal to occur were no longer in place and Iraq was no longer imposing bribes on companies outside the country.

But he said he could not say the government was rid of corruption yet.

"We cannot say our government is corruption free, that is not right,'' he said.

"But we are fighting corruption ... the efforts of government is producing some good, positive results, but still we are fighting corruption.''

Mr Truss said he had ensured the Iraq Government of Australia's determination that its companies operate ethically around the world and its intention to prosecute those who did not.

"Australia was embarrassed about the circumstances surrounding the wheat trade with Iraq,'' Mr Truss said.

But both men said their countries looked forward to the grain trade beginning again, although the current drought meant that could not begin this season.

Meanwhile, Dr Al-Sudani thanked Australia for its troop contribution to his country's security, which was improving.

He said reconciliation and compromise between different political factions in Iraq was having a "calming'' effect on violence in the country.

"I think the political circumstances, political environment, may contribute in improving the security situation,'' he said.