North American farmers have filed a class action lawsuit against the Australian Wheat Board, alleging that the Board used bribery and other corrupt activities to corner grain markets. The class action names six farmers but allows for more than 20,000 to join and is claiming $1 billion in damages.
The lawsuit will draw on evidence obtained by the Cole inquiry probing AWB's $300 million in kickbacks to the former Iraqi regime of Saddam Hussein. The suit also alleges that AWB used similar methods to secure grain sales in other markets in Asia and the Middle East. AWB is accused of conspiring to use tactics including bank fraud, bribery and money laundering.
The farmers are suing under a legislation that was designed to target the mafia and outlaw bikie gangs, the Racketeer Influence and Corrupt Organisations (RICO) Act.
Bill Fletcher, spokesman for the growers said, "What the AWB did at the expense of American and Canadian wheat farmers is create a situation where the global price of wheat became inflated and there could literally be damages in excess of $1 billion."
AWB, which is yet to be officially served with the writ, said it would defend the claim. "Such actions are ill conceived and if any action is formally brought against AWB we will vigorously defend," spokesman Peter McBride said.
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