The US Court of Appeals has dismissed an appeal by a class of residents of the three northern governorates of Iraq for losses they say they incurred as a result of AWB's role in the Oil For Food scandal.
The appeal by Karim and others was against the original verdict of the US District Court for the Southern District of New York, which found in favour of AWB Limited, AWB (USA) Limited, BNP Paribas and Commodity Specialists Company.
Meanwhile, AWB has reached a settlement agreement with Iraq's Ministry of Trade and the Grain Board of Iraq covering all previous commercial disputes.
AWB managing director Gordon Davis announced today that the settlement relates to commercial dealings such as quality claims and demurrage disputes covering trading activities by the former National Pool on behalf of Australian wheat growers.
AWB had held a financial provision in its 2005/06 season National Pool accounts to allow for such disputes and the settlement means that AWB will now be able to pay the balance out to growers in that Pool.
"AWB has worked closely with the Ministry of Trade and the Grain Board of Iraq to reach an agreed settlement on these legacy matters," Mr Davis said.
"The finalisation of these commercial issues with the Ministry of Trade and the Grain Board of Iraq opens the way for AWB to export wheat to Iraq in the future."
AWB will announce further details of the finalisation process and further Pool distribution payments in the near future.
With the resolution of these outstanding matters AWB moves closer to final closure of the 2005/06 AWB National Pool and completion of the previous National Pools operated by AWB International ("AWBI") as the 'Single Desk' manager.
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