Zespri chief executive Tim Goodacre is reported to have been implicated in a $300 million bribery scandal surrounding the Australian Wheat Board and Saddam Hussein's Iraqi regime.
An inquiry by the Australian government in Melbourne has been told Goodacre had intimate knowledge of the alleged payments and that he agreed to write a clause into employees' contracts absolving them of responsibility for the payments to Iraq, New Zealand media is reporting.
Commissioner Terence Cole QC is presiding over the inquiry into the nature of secret payments made to Hussein's regime by the Australian Wheat Board (AWB) - an organisation Goodacre held a top job in before moving to Zespri.
The 51-year-old has been chief executive of the Mount Maunganui-based kiwifruit marketer Zespri International for the past three years.
Goodacre's lawyer, Peter Crombie said no subpoena had been issued requiring his client to attend the hearing in Australia.
"He may choose to do so - there has been no formal request yet. I haven't met with him yet to discuss those allegations."
Other reports from down under said Goodacre is to take an unspecified amount of leave time to answer the questions put by the Cole Inquiry.
Crombie said: “The allegations were made by a witness last Friday afternoon, and Mr Goodacre has been overseas. We have been assisting on his behalf in the background monitoring evidence."
He said the AWB was required to disclose the names of any of its employees who were in any way involved in the sale of wheat to the Middle East, and Mr Goodacre was named in that respect.
"We haven't had access to all the documents presented to the inquiry. Mr Goodacre is trying to recall things he may have been told, or may not have been told, that occurred six years ago.
"Certain questions have been asked of him about his role, position and who he reported to, which we have assisted the inquiry with."
Goodacre worked for the wheat board in Australia for 12 years and was the group general manager corporate when he was headhunted by Zespri in late 2002.
Evidence to the inquiry has supported allegations that up to A$300 million ($330 million) paid by the wheat board for road transport under the United Nations' scandal-ridden oil-for-food programme was funnelled to Saddam's coffers.
The allegations surrounding the wheat dealings date back to the oil embargo placed on Iraq after the first Gulf War and the development by Saddam of the imposition of kickbacks to create a flow of funds from companies seeking contracts under the oil-for-food programme.
