Case Study: Oil For Food Inquiry

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Overview:

We acted for the first witness in the Inquiry into certain Australian companies in relation to the UN Oil-for-Food Programme, also known as the AWB inquiry. Our task was to protect the interests and reputation of our client.

Our Clients

Our clients, the Chief Executive Officer (CEO) and Chief Operating Officer (COO), were the most senior executives within the AWB and both men of great integrity.

The Inquiry

In November 2005 the Honourable Terence RH Cole AO was appointed Commissioner to conduct an inquiry into and report on whether decisions, actions, conduct or payments by Australian companies breached any federal, state or territory law. The purpose of the inquiry was to determine the facts in relation to transactions between AWB Limited and Iraq between mid 1999 and March 2003.

The Inquiry proceeded and public hearings began on 16 January 2006. Initially, the Commissioner was due to provide his report on 31 March 2006. However, after the terms of reference were revised 5 times and after 70 days of hearings, the hearings were adjourned on 29 September 2006.

For anyone who has not been involved in such an inquiry, the process is extremely intimidating. The Commissioner determines questions of fact and law while also asking questions of the witnesses. It can give the appearance that the Commissioner is judge, jury and prosecutor.

Witnesses are compelled to attend and compelled to answer questions. There is no right to silence or privilege against self incrimination. The public nature of the proceedings can also mean that a person's reputation and career can be ruined well before there are any findings against him or her.

In early October 2006, confidential draft findings were distributed to the relevant parties and we were given the opportunity to respond to these draft findings. The draft findings ran to about 30 volumes.

We were given approximately 2 weeks to respond in detail to draft findings and, in conjunction with senior and junior counsel, we worked around the clock to finalise our submission. The Commissioner's final report was handed down on 24 November 2006. Unfortunately, this is not the end of the story for anyone involved.

The Findings

The Commissioner recommended that a Taskforce be established to further investigate possible breaches of the Criminal Code, the Banking (Foreign Exchange) Regulations, the Corporations Act 2001 (Cth), the Crimes Act 1914 (Cth) and the Crimes Act 1958 (Vic). For those whom the Commissioner recommended be referred to the Taskforce, they await a call from the Taskforce or a summons.

For those "cleared" by the Commission, there is no certainty. The relevant authorities are not bound by the Commissioner's findings and have already issued proceedings against one high profile former AWB executive who was supposedly "exonerated" by the Commissioner.

If you are called before a Commission of Inquiry or Royal Commission, you need to seek legal advice immediately. We have the experience to help you to protect your reputation and your career.