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Australia   Payments made to the Government of Iraq

Court orders penalty against former chairman of AWB Limited

Trevor FluggeThe Supreme Court of Victoria has ordered that Trevor Flugge, the former chairman of AWB Limited, pay a pecuniary penalty of $50,000.

He will be disqualified from managing corporations for a period of five years following the Court's finding that he contravened the Corporations Act.

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The orders follow the Court’s judgment delivered in December 2016 which found that Mr Flugge had breached his duties as a director of AWB in connection with payments made to the Government of Iraq while that country was subject to United Nations (UN) sanctions.

As part of that judgment, the Court found that Mr Flugge failed to make adequate enquiries about the propriety of the payment of inland transportation fees and, as a consequence, failed to stop AWB engaging in improper conduct in paying the inland transportation fees to the Government of Iraq.

AWB Limited was a major grain marketing organisation based in Australia.

It was a government body known as the Australian Wheat Board until July 1, 1999, when the AWB was transformed into a private company, owned by wheat growers.

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