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Cole Inquiry

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27-925: The Cole Inquiry , formally the Inquiry into certain Australian companies in relation to the UN Oil-For-Food Programme , was a Royal Commission established by the Australian government pursuant to the Royal Commissions Act 1902 to investigate "whether decisions, actions, conduct or payments by Australian companies mentioned in the Volcker Inquiry into the United Nations Oil-for-Food Programme breached any Federal, State or Territory law." The inquiry commenced on 10 November 2005 and

54-494: A date by which the commission must finish. Royal commissions are called to look into matters of great importance and usually controversy. These can be matters such as government structure, the treatment of minorities, events of considerable public concern or economic questions. Many royal commissions last many years and, often, a different government is left to respond to the findings. Royal commissions have been held in Australia at

81-586: A federal level since 1902. Royal commissions appointed by the Governor-General operate under the Royal Commissions Act 1902 passed by the Parliament of Australia in 1902. A defunct alternative is known as a Parliamentary Commission of Inquiry. Royal commissions are the highest form of inquiry on matters of public importance. A royal commission is formally established by the Governor-General on behalf of

108-476: A few cases—compelling all government officials to aid in the execution of the commission. The results of royal commissions are published in reports, often massive, of findings containing policy recommendations. Due to the verbose nature of the titles of these formal documents they are commonly known by the name of the commission's chair. For example, the “Royal Commission into whether there has been corrupt or criminal conduct by any Western Australian Police Officer”

135-584: A media conference held in Sydney, "If asked I will naturally be happy to appear." "I've said all along that this is an utterly transparent process, which is not protecting the Government, which is designed to get to the truth of this matter and I am more than happy to comply with the request made by the commission." On 28 August 2009 the Australian Federal Police (AFP) decided to drop its investigation into

162-451: A new entity, with all staff associated with the corrupt dealings having left." Hastings told the AFP that in his opinion there was no reasonable prospect of a conviction. It was not even clear that breaching a UN sanction is a criminal offence. Royal Commission A royal commission is a major ad-hoc formal public inquiry into a defined issue in some monarchies . They have been held in

189-571: A small percentage of the 'charges', and passed the remainder to the government of Saddam Hussein. An accompanying statement released with the report by the Secretary-General of the United Nations , Kofi Annan requested that "national authorities take steps to prevent the recurrence of such practices in the future and that they take action, where appropriate, against companies falling within their jurisdiction". In response to Volcker's findings,

216-631: Is an Australian farmer and businessman. He is best known as a former official of the Australian Wheat Board (AWB). He joined the board in 1984, was chair of AWB in 1995–2002, and was present at meetings in Iraq which were linked to the Oil-for-Food scandal , and an inquiry by the United Nations . Flugge was educated at Aquinas College, Perth , and became a farmer in the Katanning area. In 1987, he

243-416: Is created by the head of state (the sovereign, or their representative in the form of a governor-general or governor) on the advice of the government and formally appointed by letters patent . In practice—unlike lesser forms of inquiry—once a commission has started the government cannot stop it. Consequently, governments are usually very careful about framing the terms of reference and generally include in them

270-617: Is known as the Kennedy Royal Commission . While these reports are often quite influential, with the government enacting some or all recommendations into law, the work of some commissions have been almost completely ignored by the government. In other cases, where the commissioner has departed from the Warranted terms, the commission has been dissolved by a superior court. Trevor Flugge Trevor James Flugge ( / ˌ f l uː ɡ i / FLOO -ghee ; born 1 February 1947)

297-559: The United Kingdom , Australia , Canada , New Zealand , Norway , Malaysia , Mauritius and Saudi Arabia . In republics an equivalent entity may be termed a commission of inquiry . Such an inquiry has considerable powers, typically equivalent or greater than those of a judge but restricted to the terms of reference for which it was created. These powers may include subpoenaing witnesses, notably video evidences, taking evidence under oath and requesting documents. The commission

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324-543: The Wheat Export Authority , who among other things frequently claimed memory loss, inability to locate diaries and notes and notoriously, in the case of former AWB board chairman Trevor Flugge , hearing loss. On 6 February 2006 the inquiry's terms of reference were extended to include the activities of BHP Billiton in relation to the Oil for Food Program. On 16 February 2006 Commissioner Cole invited broadcast media into

351-600: The Australian Government established a Royal Commission to further investigate the claims raised by the UN report. By Letters Patent issued on 10 November 2005 the commission was asked to inquire into and report on: The Royal Commissioner was Justice Terence Cole AO RFD QC , a former Judge of Appeal of the Supreme Court of New South Wales . The Cole Inquiry was the second Royal Commission where Justice Cole

378-914: The Crown and on the advice of government Ministers. The government decides the terms of reference, provides the funding and appoints the commissioners, who are selected on the basis of their independence and qualifications. They are never serving politicians. Royal commissions are usually chaired by one or more notable figures. Because of their quasi-judicial powers the commissioners are often retired or serving judges. They usually involve research into an issue, consultations with experts both within and outside government and public consultations as well. The warrant may grant immense investigatory powers, including summoning witnesses under oath , offering of indemnities, seizing of documents and other evidence (sometimes including those normally protected, such as classified information ), holding hearings in camera if necessary and—in

405-554: The UN report ( AWB , Alkaloids of Australia Pty Ltd, and Rhine Ruhr Pty Ltd) were granted leave to be represented by counsel before the Royal Commission Prior to the public hearings the commission held a series of closed hearings in December 2005 and January 2006. Some witnesses who were examined in the closed hearings also gave evidence in the public hearings. The commission's public hearings commenced on 16 January 2006. During

432-403: The decision to drop the investigation was made after a review of the evidence by senior barrister Paul Hastings QC, who declared the prospect of convictions was limited and "not in the public interest". In 2009, The Australian reported "It has hardly been a secret that the AFP investigation was under-funded and under-resourced, and it received little co-operation from AWB, which sees itself as

459-486: The fifth President of Iraq , Saddam Hussein . The United Nations Independent Inquiry Committee was formed to investigate allegations of corruption and fraud in the UN Oil-for-Food Programme. In exchange for trouble-free disembarkation of wheat purchased under the Oil for food program, AWB paid 'trucking charges' totaling A$ 300 million to Alia, a Jordanian trucking company. Volcker found that Alia kept

486-488: The first six weeks of public hearings evidence led by Agius and cross examination by him of witnesses brought out a series of revelations that showed the conduct of AWB's executives and directors in a very poor light. Apart from interrupting assisting counsel's question to ask witnesses his own probing questions, Cole frequently made reproving comments about the behaviour and evidence of witnesses particularly those in responsible and often highly remunerative positions with AWB and

513-466: The inquiry to provide any such information to those assisting me". On 2 March 2006 counsel assisting, John Agius, threatened to serve search warrants on AWB following claims of memory lapses and loss of documents by a former company manager, Andrew McConville. This was countered by counsel for AWB who suggested that the search for documents by the company was being conducted in a rigorous manner and at considerable expense. On 3 March 2006, Cole applied for

540-471: The inquiry's hearing room to record an invitation to anyone with information about kickbacks or the Iraqi oil-for-food scandal to appear before his inquiry. Cole emphasised that this appeal applied to anyone saying: "I am extending a specific invitation to any Member of Parliament, any member of the media, any public servant, or any member of the public who believes that they have information relevant to this aspect of

567-403: The inquiry's terms of reference to be amended to extend the period of the inquiry for up to two months (i.e. from the end of March to May 2006). Prime Minister John Howard indicated the government's agreement to this request two days later. Howard was asked to write and submit a statement in regard to this matter, and was cross examined on 13 April for 53 minutes. Howard previously stated to

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594-476: The scandal in which wheat exporter AWB was found to have been funding the Iraqi regime in breach of UN sanctions. It was found that it was not even clear that breaching a UN sanction is a criminal offence and a conviction "was not in the public interest". The decision means no former employee or director of AWB will face criminal charges, although an investigation by corporate watchdog Australian Securities & Investments Commission continued. The AFP announced that

621-547: Was an unsuccessful National Party candidate for the seat of O'Connor (against Wilson Tuckey ) in the Australian election that year. Flugge has also served as chair of the Australian Wheat Growers Association, and as a board member of the major diversified company Wesfarmers . Trevor Flugge was chair of AWB until March 2002, when he was voted off the board by the A-class shareholders (wheat growers). He

648-413: Was appointed a consultant to AWB after the vote and travelled to Baghdad later that same year, with AWB chairman Andrew Lindberg , to rescue an AWB wheat export deal with Saddam Hussein 's regime. There were later accusations that AWB had paid bribes to secure the export contract. AWB officials agreed to pay $ 2 million to the Iraqi regime, which would then allow wheat exports to resume. This payment

675-532: Was made by inflating the price of wheat contracts administered by the United Nations Oil-for-Food Programme . Following the 2003 invasion and overthrow of the Hussein regime, Flugge was made a senior adviser to the Iraqi agriculture department. After the bribery became public in 2005, Flugge denied to the UN's Volker inquiry that he knew about AWB's payments to the Hussein regime. Flugge

702-554: Was overseen by a sole Royal Commissioner , Justice Terence Cole AO RFD QC . Justice Cole handed the commission's five volume report to the Governor-General on 24 November 2006; and the report was tabled in parliament on 27 November 2006. The Volcker Inquiry was set up to investigate the systematic corruption of the Oil-for-Food Programme (or Program) by the Arab nationalist and Arab socialist government of

729-617: Was the sole Commissioner. The 2001–2003 Royal Commission into the Building and Construction Industry is commonly referred to as the Cole Royal Commission hence to avoid confusion the 2005–06 Royal Commission is commonly referred to as the Cole Inquiry . Cole was supported by John Agius SC , Counsel Assisting and three other barristers, Gregory Nell, Michael Wigney and Miles Condon. The three Australian companies adversely mentioned in

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