THE corporate regulator has abandoned proceedings against two former AWB directors in connection to the Iraq Oil-for-Food scandal.
In a statement on Monday, the Australian Securities and Investments Commission (ASIC) said it had dropped Victorian Supreme Court proceedings against former directors Charles Stott and Michael Long on the basis that they were ‘‘no longer in the public interest’’.
‘‘The discontinuance is by consent in both matters,’’ the regulator said.
‘‘No finding of fault or declaration of contravention was made against Mr Stott or Mr Long.’’
ASIC said proceedings against two other former AWB directors – former chairman Trevor Flugge and former general manager Peter Geary – were ongoing.
‘‘ASIC decided to discontinue the proceedings after forming the view that it was no longer in the public interest to pursue its claims against Mr Stott... and Mr Long,’’ it said. Mr Scott and Mr Long held the position of general manager of AWB’s international sales and marketing arm, with Mr Long succeeding Mr Stott.
In 2007 ASIC launched civil proceedings against six former AWB directors, including chief executive Andrew Lindberg, for alleged breaches of their duties as directors and officers of AWB.
The proceedings relate to the 2005 Oil-for-Food scandal, in which AWB – formerly known as the Australian Wheat Board – paid kickbacks to Iraq dictator Saddam Hussein in breach of United Nations sanctions.
Mr Lindberg was found to have breached his duties as director of the company by Victorian Supreme Court Justice Ross Robson in August 2012.
He was fined $100,000 and temporarily banned from director roles.
In March this year, ASIC won an appeal in the Victorian Supreme Court to uphold a $40,000 fine and 15-month disqualification against another director – AWB’s former chief financial officer Paul Ingleby.
The director had previously agreed to the penalty after admitting he failed to exercise his powers and discharge his duties.
