Six former directors and executives of AWB (formerly the Australian Wheat Board) got a Christmas present they had been half expecting, but not looking forward to, when the Australian Securities and Investments Commission (Asic) confirmed it would be bringing civil charges against them.

The ASX-listed company, with a legislated monopoly for bulk exports of the country's wheat crop, had been found guilty, by a 2006 royal commission, of paying $A290 million in bribes to the Iraqi regime of Saddam Hussein as it rorted the UN oil-for-food scheme in the lead-up to the 2003 second Gulf war.

The commission recommended that Asic and police investigate civil and criminal proceedings against 12 then directors and executives.

Asic alleges that the six failed to act with care and diligence, failed to act in good faith, and failed to act for a proper purpose. It alleges that they knew, or ought to have known, that kickbacks were being paid.

The charges are being brought under the Corporations Act and carry fines of up to $A200,000 per offence. The individuals face between seven and 17 charges each. Asic is also seeking to have the six banned as company directors.

At the same time, the wheat regulator delivered an unwelcome Christmas present for the current board and executive. The Export Wheat Commission issued a scathing report, saying AWB may not have acted in the best interests of growers in the previous financial year.

As a result, AWB has been barred from passing on its higher transport and related costs to farmers when it pays dividends for the 2007-08 year. TI/The National Business Review, 18/01/08.