Monday 7 September 2015

What do Vegemite, Cadbury's chocolate, Bega cheese and Kellogg's cereals have in common? They are all Halal certified. Like many products on our supermarket shelves, they've been given the tick of approval for Muslim consumers to buy.

For food producers and exporters it's a straightforward pragmatic business practice. The manufacturer pays for an inspection to gain Halal certification, which in turn opens up lucrative markets.

"Halal certification is a ticket to play." Export Business Advisor

To the growing anti-Halal movement it's the thin edge of the wedge, a sign of the Islamification of Australia.

"I do not want religious practices imposed upon me and I do not want to fund these practices with my everyday grocery purchases." Anti-Halal Campaigner

It's become a touchstone issue for groups like Reclaim Australia, that label it a 'religious tax' foisted on consumers.

Claims about corruption and links to terrorism light up the blogosphere and provide fodder for anti-Islam rallies.

Four Corners goes in search of the truth and follows the money trail to reveal where the Halal funds are ending up.

We meet key players in the anti-Halal movement and the men who decide what's Halal and what's not - and hold the key to multi-billion dollar export markets.

The Truth About Halal, reported by Geoff Thompson and presented by Kerry O'Brien, goes to air on Monday 7th September at 8.30pm. It is replayed on Tuesday 8th September at 10.00am and Wednesday 9th at midnight. It can also be seen on ABC News 24 on Saturday at 8.00pm, ABC iview and at abc.net.au/4corners.

Transcript

7 September 2015 - The Truth About Halal

KERRY O'BRIEN, PRESENTER: Tonight on Four Corners: the truth about halal-certified food. We follow the money trail to find out where the profits end up and investigate claims of links to terrorism.

GEOFF THOMPSON, REPORTER: How about Vegemite?

KIRRALIE SMITH, HALAL CHOICES: Vegemite, of course, is halal certified.

There's not many products that actually have it on the label.

GEOFF THOMPSON: How about Cadbury? Can you take that come?

KIRRALIE SMITH: Absolutely not. Cadbury's are not - they are halal-certified. They no longer put the symbol on the packaging.

MOHAMED EL-MOUELHY, CHAIRMAN, HALAL CERTIFICATION AUTHORITY: Eating a halal bar of chocolate will never, ever make you a Muslim, so don't worry about that.

KIRRALIE SMITH: A lot of the profits go to mosques, Islamic schools and Islamic charities in this country. I don't think that anybody should have to fund that if they don't want to.

CORY BERNARDI, LIBERAL SENATOR: The links may be tenuous. They may be more direct than, than we know but, um, you know, extremism is being funded by somewhere and it'd be nice to know where it is.

KERRY O'BRIEN: The rowdy debate about halal certification has generated plenty of heat but, so far, not much clarity about what halal actually means, how it works and whether there are any legitimate concerns behind the increasingly vitriolic campaign against halal food.

The term simply means "permissible" under Islam. At its most basic, that means the product doesn't contain any trace of alcohol or pork. It also applies to the way an animal is slaughtered.

The certification is for Muslim residents, but also opens up lucrative global markets for domestic food producers.

A great deal of what we all eat in this country is now halal-approved, like bread, milk and cereals and at least 80 per cent of the chicken processed here.

Most shoppers seem not to care, but anti-halal activists argue that some of the money raised has gone to support Islamic extremism, even terrorism.

Tonight's program investigates the truth behind the often emotive claims about the business of halal.

The reporter is Geoff Thompson.

(Footage of Reclaim Australia rally, Melbourne, July)

MIKE HOLT, RETORE AUSTRALIA: We're a lucky country. We've seen what happens in other countries.

GEOFF THOMPSON, REPORTER: It's a wintry Saturday in Melbourne.

MIKE HOLT: All over the world, wherever Islam goes there is trouble. Are we going to wait for them to start here?

RALLY ATTENDEES: No!

GEOFF THOMPSON: The new grass-roots nationalist movement Reclaim Australia stages a tiny rally on the steps of Parliament House.

MIKE HOLT: They are not loyal Australians.

GEOFF THOMPSON: It's attracted a motley crew of angry young men, ordinary people, the odd neo-Nazi and members of the more extreme United Patriots Front.

BLAIR COTTRELL, UNITED PATRIOTS FRONT: But your nation lives inside you. It flows though your veins. It is in your spirit! Never forget it and always remember the strength, the honour and the mateship that makes us who we are!

Aussie, Aussie, Aussie!

RALLY ATTENDEES: Oi, oi, oi!

BLAIR COTTRELL: Aussie, Aussie, Aussie!

RALLY ATTENDEES: Oi, oi, oi!

GEOFF THOMPSON: They are united, perhaps, only by the common belief that Islam will destroy their Australia.

MIKE HOLT: There's only one thing we can do with Islam: and that's get rid of it from this country, because it is completely incompatible with our nation.

(Attendees applaud)

It's a wedge into our society.

GEOFF THOMPSON: One of their touchstone issues is halal-certified food.

MIKE HOLT: The halal scam. How many of you have seen the little red stickers: "Beware, halal funds terrorists"?

ATTENDEE: Yes!

MIKE HOLT (laughs): Yeah.

GEOFF THOMPSON: Reclaimers and their supporters believe fees paid to certify food as halal are an unacceptable religious tax, funding nefarious causes.

MIKE HOLT: Most of the food in the supermarket is halal-certified. What if the Catholics came along and said, "We're going to impose a Catholic tax on your food"? What would you do about that? Everybody would be up in arms. But because it's Islam, we have to understand Islam.

(Footage of Reclaim Australia rally, Rockhampton, July)

RALLY MASTER OF CEREMONIES: Ladies and gentlemen, please make welcome Pauline Hanson.

GEOFF THOMPSON: Similar rhetoric ricochets at Reclaim Australia rallies around the country.

PAULINE HANSON, LEADER, ONE NATION PARTY: I'm not targeting Muslims: I'm targeting the ideology what Islam stands for.

GEOFF THOMPSON: In Rockhampton, Queensland, Pauline Hanson is back to ride this political tide.

PAULINE HANSON: Another thing that I will touch on that I am totally against and opposed to is halal certification.

(Crowd applauds)

PAULINE HANSON: It is a scam. It is a money-making scam.

(Footage of Reclaim Australia rally, Mackay, July)

GEORGE CHRISTENSEN, LNP MP: We all have the right to be here today.

GEOFF THOMPSON: Deeper north, in Mackay, the local Federal member, George Christensen, was also beating the anti-Islam drum.

GEORGE CHRISTENSEN: We are protesting in a peaceful way. We are protesting against the dangers of radical Islam and the culture of appeasement that allows radical extremism like that to fester.

(Footage of Reclaim Australia Rally, Gold Coast, July)

BERNARD GAYNOR: I estimate that well over half of Australians' lamb and beef comes from animals sacrificed to Allah.

GEOFF THOMPSON: At the Gold Coast rally, the main attraction is the fresh and articulate new face of anti-Islam in Australia.

RALLY MASTER OF CEREMONIES: You know, she's a mother of three. She's put herself, her family on the line. Without any further ado, Mrs Kirralie Smith here today!

(Crowd applauds)

KIRRALIE SMITH, HALAL CHOICES: The overall and dominant position that I hold regarding halal certification is that I do not want religious practices imposed upon me and I do not want to fund these practices with my everyday grocery purchases.

(Crowd applauds. Footage ends)

(Geoff Thompson and Kirralie Smith walk down the aisle of a supermarket)

GEOFF THOMPSON (to Kirralie Smith): So, Kirralie, what can you buy in this supermarket?

(Voiceover): For Kirralie Smith, a trip through the supermarket is like walking through a religious minefield.

KIRRALIE SMITH: Weetbix, obviously. You know, everybody loves Weetbix. Pick it up, have a look: that is halal-certified but nowhere on that packaging does it indicate that that is halal-certified. So how can a consumer know at the point of sale that that is something that they would like to purchase or not purchase?

GEOFF THOMPSON: She refuses to buy products that have halal certification, believing each purchase is one more step towards Australia's Islamisation.

KIRRALIE SMITH: Vegemite, of course, is halal certified.

GEOFF THOMPSON: That certification: that rules it out for your kids?

KIRRALIE SMITH: Absolutely.

GEOFF THOMPSON: No Vegemite for your kids?

KIRRALIE SMITH: No Vegemite. They like Dick Smith better, anyway.

There's not many products that actually have it on the label. For instance, right next door to it you have Kellogg's. And there's no markings whatsoever; however they are all halal-certified. But at least with Vegemite, I can make a choice.

GEOFF THOMPSON: For Kirralie, halal is hiding in every aisle and on just about every shelf.

(To Kirralie Smith) So how about Cadbury? Can you take that home?

KIRRALIE SMITH: Absolutely not. Cadbury's are not - they are halal-certified. They no longer put the symbol on the packaging.

They used to, but I believe because of consumer backlash they've removed it and they have a statement on their website. But it doesn't indicate it on the label at all. Same with Nestlé.

GEOFF THOMPSON: So they're not, so as not to make you angry, they've removed it?

KIRRALIE SMITH: Well, yeah - which makes us (laughs) even angrier, really.

(Excerpt from Halal Choices web video)

KIRRALIE SMITH (web video): Hi. I'm Kirralie Smith, founder and director of Halal Choices.

GEOFF THOMPSON: Kirralie set up the website Halal Choices in 2011 and appeared in a video paid for by the anti-Islam group, the Q Society.

KIRRALIE SMITH (web video): We're free to worship virtually anyone or anything we like.

KIRRALIE SMITH (voiceover): I do feel like it's become freight train out of control in my personal life.

(Excerpt ends)

KIRRALIE SMITH: I only wanted a shopping guide. I just wanted a shopping list so that I went shopping I could make a personal choice of what I would like to buy and what I wouldn't like to buy, according to what was halal-certified. And it just proved to be an incredibly difficult task and discovering along the way that there were just so many questions without answers - and very serious questions and very serious allegations.

GEOFF THOMPSON: Kirralie Smith developed her strong views on Islam after volunteering with Christian missionaries in Africa.

She later travelled to Indonesia after a vicious inter-religious conflict left more than 5,000 dead.

(Footage of Ambon sectarian conflict, 1999)

KIRRALIE SMITH: We spent a few weeks there visiting the refugee camps where approximately 50,000 people had been displaced because of this jihad. And every single person we met had a story. They literally had scars on their bodies, they had photographs, um, of loved ones who had been mutilated or beheaded.

They were predominantly Christian but we did meet some Muslims who had refused to stand with the jihadis, so they were also persecuted. And, um, every single one of them grabbed my hand and, and the people I was with and said, "Please remember us. Don't forget us."

GEOFF THOMPSON: Later, at a church conference in Australia, Kirralie was inspired to fight what she saw as Islamisation at home.

KIRRALIE SMITH: It was at that conference about Islam that the speaker made reference to halal certification. And that awakened an interest for me. He, he said, "Cadburys and Bega are halal certified" and I thought: oh, that's fascinating. Wonder why that is?

MOHAMED EL-MOUELHY, CHAIRMAN, HALAL CERTIFICATION AUTHORITY: Well, I really don't see how it is Islamisation. This is a business and it is a very good business for this country.

It has nothing to do with the religion itself. I'm going around circumcising people and I'm not going around converting them to Islam. And eating a halal bar of chocolate will never, ever make you a Muslim, so don't worry about that.

GEOFF THOMPSON: Mohamed El-Mouelhy is a halal certifier based in Sydney. The successful businessman has been a target of Kirralie Smith's online outrage.

(Excerpt from Halal Choices web video)

KIRRALIE SMITH (web video): When Mr El-Mouelhy was interviewed about halal certification schemes, he himself confessed it's not about Sharia law. In fact, it was only about him getting very, very rich and buying his wife's shoes.

GEOFF THOMPSON: Kirralie Smith and the Q Society are being sued by El-Mouelhy for defamation. He says they've accused him of funding terrorism.

But he gives almost as good as he gets.

(Excerpt ends)

MOHAMED EL-MOUELHY: These bigots, the religiously intolerant toward Muslims and Islam: they've got it all wrong. Not one single, single thing can be proven. Not a single one - and that is why I'm taking their chiefs to court.

GEOFF THOMPSON: El-Mouelhy is unashamedly in the halal business to turn a profit.

MOHAMED EL-MOUELHY: I'm a halal businessman through and through. And everything I touch turns into gold. Halal certification can be helpful to the country, can be helpful to the people and it has made many countries very rich - of any, many companies very rich. In a few years' time, the size of the market will be $3 trillion. It is the largest single market and Australia better be in it and not out of it.

GEOFF THOMPSON: The worldwide halal market is currently valued at up to $2.1 trillion dollars.

Australia's slice of that is a growing multi-billion dollar export opportunity.

BARNABY JOYCE, FEDERAL AGRICULTURE MINISTER: Well, I'll talk about where it is in the meat sector. It's about $1.5 billion of an $8.5 billion industry. That's in your cattle and your sheep exports. It's been an industry that's been with us for about four decades, getting close to half a century, ah, so it's not something that's recent.

But what I can say is: ah, without our capacity to sell product into Islamic countries: ah, that would be, er, quite devastating, especially in the beef industry and the sheep industry.

DANNY BURROWS, ASIA BUSINESS ADVISER: Halal certification is - it's a ticket to play. It's a ticket to play in vast global markets: markets through the Middle East, through Asia. You know, Australia is a market of some 25 million people, but the markets to our immediate north, just in Asia alone, are vastly emerging, particularly in terms of their middle-class consumption.

(To business meeting) So this is really a, an old but emerging story about...

GEOFF THOMPSON: Danny Burrows is a former federal government free-trade negotiator who says the anti-halal movement could hurt Australia's economy.

DANNY BURROWS: What we can look at is Australia's food exports to Islamic communities around the world. And what we see is around $13 billion annually in food exports alone being sent to the Islamic consumer around the world. And that's supported by some 60,000 jobs in Australia, just in the food processing for export sector alone.

KIRRALIE SMITH: Of course I don't want to hurt the Australian economy. I love Australia and I'm a part of the Australian economy. I don't want to hurt it at all, but I think that sometimes there are values that a- are more important than money and we need to talk about them.

GEOFF THOMPSON: Halal is the Arabic word for "permissible" and defines the food that Muslims are allowed to eat. For example, pork, alcohol and blood are forbidden.

Animals are pre-stunned but still alive when their throats are cut, so that the blood leaves their bodies.

MOHAMED EL-MOUELHY: We invoke the name of God on the animal because we regard food as a gift from the Almighty.

GEOFF THOMPSON: We may not know it, but most Australians are eating halal-slaughtered meat.

At least 80 per cent of Australia's chicken is processed in halal-certified plants.

KIRRALIE SMITH: It would be 70, 80; possibly even 90 per cent of our chicken is halal-slaughtered. We have less than three per cent of our population who are Muslims. Less than five per cent of chicken is exported and mostly to non-Muslim countries. When it comes to red meat, it could be, ah, as high as 60, 75 per cent - but I don't know that, because it's very hard to get the information.

(Footage of Geoff Thompson and Rabbi Gutnik in kosher butcher shop)

MOSHE GUTNICK, RABBI, PRESIDENT, KASHRUT AUTHORITY: Here, of course, is the, er, meat display. Um, you know, what's missing? Of course, no pork.

GEOFF THOMPSON: Of course.

MOSHE GUTNICK: But what else is missing? Rump steak.

GEOFF THOMPSON: And why no rump steak?

MOSHE GUTNICK: Because, um, biblically there are certain, um, ah, nerves and fats in the hindquarter which are very difficult to extract.

GEOFF THOMPSON: So the whole back half of the animal is not eaten if you're keeping kosher?

MOSHE GUTNICK: Correct. And, um...

GEOFF THOMPSON: Kosher food, preferred by Jews, is similar to halal - but there are crucial differences.

MOSHE GUTNICK: ...animal to wherever he sees fit.

When it comes to meat, it must be only animals that chew their cud and have cloven hooves - that means split hooves - and the meat has to be prepared in a, a, a special way. And if all those rules are followed - and they're actually quite, um, complicated and, and complex - then the food is considered kosher.

(Footage of Geoff Thompson and Rabbi Gutnik in rear section of kosher butcher shop)

W-we're coming around to the back of the shop, where the...

GEOFF THOMPSON: Along with pork, Jews don't eat certain types of seafood and poultry. Beef, lamb and chicken are all on the menu, but kosher's requirements are more complicated than halal.

MOSHE GUTNICK: This is lovely young lamb. Um, what happens is: in here there is a blood vessel, so it's sliced and the blood vessel is taken out. Um, there's further blood vessels, um, along here as well.

Um, this is the koshering room. Here you have the meat lying in salt for, um, for actually an hour. And...

GEOFF THOMPSON: That's the salt: draws all the blood out the...?

MOSHE GUTNICK: Correct. And it goes through the holes and onto the floor and then it's h-hosed away.

GEOFF THOMPSON: There are exceptions, but for the most part kosher food is either labelled or segregated in the supermarket.

MOSHE GUTNICK: Kellogg's food is kosher-certified, but it doesn't have a, er, symbol on it. Um, there are products which don't have the symbol. But again: this shouldn't concern anyone because it's just a, er, a statement of fact. It's got no religious significance, er, to the food at all.

GEOFF THOMPSON: And what are the fees spent on?

MOSHE GUTNICK: All money that we earn, um, remain- ah, goes back into providing services for the Jewish community and, um, all p- kosher services for the Jewish community. In other words, it goes to, to making our organisation better. We provide some kosher services, um, for free.

GEOFF THOMPSON: What are the different types of kosher certification we see here?

(Voiceover) One of the mysteries of the present debate around halal is why the anti-halal campaigners don't also oppose kosher certification.

KIRRALIE SMITH: With Kosher meat, it's very clearly labelled. You normally do have to pay a lot more for it. It's in kosher butcher shops. Um, i-it's a choice. And I don't choose to buy kosher meat so it really hasn't been something that I've looked into very much.

AMJAD MEHBOOB, AUSTRALIAN FEDERATION OF ISLAMIC COUNCILS: Anything to do with Islam and Muslims: they will object to it and campaign it o- against it. So halal is one of those. Setting up mosques, building mosques around Australia is another one of those.

GEOFF THOMPSON: Halal certification is expanding into surprising areas like cosmetics, clothing, travel - and tea, too.

RON FORD, CO-OWNER, MADURA TEA: And that is basically what you would try and harvest with the harvester.

GEOFF THOMPSON: Madura Tea's plantation is in northern New South Wales.

Tea is naturally halal. Certification simply guarantees that during processing it hasn't been contaminated by alcohol-based cleaning products, for example.

RON FORD: I see it really as an economic decision for a company by a company. If you want to get the certification, go ahead and get it.

GEOFF THOMPSON: Madura Tea produces 750,000 tea bags each day. Halal certification costs the company $1,400 a year.

RON FORD: If you worked that out as a cost that would be passed through to the consumer, that would be equivalent to you consuming 140,000 cups of tea per year or 400 cups of tea a day, round about, to provide one cent of contribution towards that audit fee. So it's an insignificant cost.

KIRRALIE SMITH: There's a cost that's unnecessary. It's a religious fee. The money at the end of the day - whether one cent from my pocket, but collectively it's 1,000, 2,000, 10,000, 27,000 - whatever the the, final figure is, is going to fund things that I'm not, I'm not happy for that to be funded without my knowledge and consent.

GEOFF THOMPSON (to Ron Ford): Is there any situation that you would...

(Voiceover) Madura Tea was targeted by Kirralie Smith for being halal-certified. The company later dropped certification - they say for business reasons.

RON FORD: If you don't want to get it: that's fine, too. Our decision was to try it. We found no significant economic benefit. We terminated it.

(Footage of Senate Economics References Committee hearing)

SAM DASTYARI, SENATOR, CHAIRMAN, SENATE ECONOMICS REFERENCES COMMITTEE: I declare open this hearing of the Senate Inquiry into Third Party Certification of Food.

Could you please state your name and the capacity...

GEOFF THOMPSON: The Senate inquiry has begun public hearings.

CORY BERNARDI, LIBERAL SENATOR: Livestock, for example, has undergone a religious ritual of some description.

GEOFF THOMPSON: It's investigating not just halal but certifications for kosher, genetically modified and organic food, too.

CHRISTOPHER PRESTON, LEGAL AND REGULATORY DIRECTOR, AUSTRALIAN FOOD AND GROCERY COUNCIL: What's involved in the process...

GEOFF THOMPSON: But most of the more than 1,400 submissions sent into the inquiry are about halal certification.

CORY BERNARDI: Saudi Arabia: you have to go through a particular certifier. Is that correct?

(Footage ends)

CORY BERNARDI: Ultimately it's my idea, because I've received so many contacts from people who are concerned that, ah, they're either funding organisations that they don't want to fund; they're not being fully informed; that, ah, labelling is not clear; ah, and that people can't, you know, opt out in effect because they don't know that a portion of their, their product's, ah, purchase price is supporting causes or organisations that they don't want to.

(Excerpt from TV news report, 1981)

REPORTER (US TV news, 1981): The Department of Agriculture says the horse meat was found in a shipment of...

GEOFF THOMPSON: Australia's halal business has faced government scrutiny before. Halal certification was caught up in the 1982 Royal Commission into meat substitution, known as 'Slaughter-gate'.

REPORTER (US TV news, 1981): The nationwide embargo on imported Australian beef was ordered after some 7,000 pounds of suspected horse meat was shipped to fast food restaurants in San Diego, Houston, Dallas and Denver. There is also suspicion some of the meat may contain kangaroo.

(Excerpt ends)

MOHAMED EL-MOUELHY: They had the Royal Commission into the meat substitution racket and there were quite a lot of abattoirs that closed down. Quite a lot of people went to jail. Quite a lot of people as well escaped the country and went to other countries.

GEOFF THOMPSON: The royal commission revealed that some exporters were forging halal certificates. At the time, the Australian Federation of Islamic Councils (AFIC) had a virtual monopoly on the halal meat trade.

Amjad Mehboob was with AFIC at the time.

AMJAD MEHBOOB: Absolutely I was in the middle of it. In fact, we made submissions to the government. We also brought the issue of people trying to sell off non-halal product overseas as halal with forged certificates. Using our certificates - the, the AFIC certificates were forged. Um, we, we, we got those certificates back from the importers, um, and, ah, s-so that was also a, a problem.

GEOFF THOMPSON: To reduce the risk of corruption, the royal commission recommended new guidelines for halal certification in Australia.

It said monopolies should be avoided and that fees charged should "not be seen as a way of raising revenue for other Muslim purposes unconnected with the meat industry."

(To Kirralie Smith) What are your concerns about what halal fees are spent on?

KIRRALIE SMITH: Eh, well, th- there's no bones about the fact that a lot of the profits go to mosques, Islamic schools and Islamic charities in this country. And that's not illegal, that's not a problem. However my problem is - well, my issue is, is, is funding that. And, um, I don't think that anybody should have to fund that if they don't want to.

GEOFF THOMPSON: Profits from halal certification have flowed into projects like Islamic schools and mosques: schools like the East Preston Islamic College, which is owned by halal certifier, the Islamic Coordinating Council of Victoria - or ICCV.

EKREM ÖZYÜREK, DEPUTY CHAIR, ISLAMIC CO-ORDINATING COUNCIL OF VICTORIA: Because this school has been purchased by ICCV and ICCV owns the school.

And some funding, of course: like, for, er, for example with the next stage of the buildings which will be happening just out here: it's two d-double-storey building which will have no funding from the Government in terms of building. It will be pa- you know, funded by ICCV.

We've got, um, a double-storey building going over, out here. And we also have - in the plan, we've got a secondary building, double-storey, going further up that way.

GEOFF THOMPSON: Money made from halal certification will also pay for some of the school's $5 million dollar expansion.

(To Ekrem Özyürek) Some of the money from halal certification will go towards buil- expanding the school here?

EKREM ÖZYÜREK: Yes, correct. Yep, yep.

GEOFF THOMPSON: The ICCV says the money stays in Australia.

EKREM ÖZYÜREK: When I talk about ICCV in particular, that money's spent in Australia for Australians.

GEOFF THOMPSON: The Australian Federation of Islamic Councils - or AFIC - does halal certification. Its profits also support local mosques and help it run schools, like Malek Fahd in Sydney's west.

AMJAD MEHBOOB: Yes. Well, AFIC itself has never built any mosques. But when the local community are doing a project, they approach AFIC and AFIC carries out a process of, you know, scrutiny and all that and may provide small grants: you know, $20,000, $30,000, $50,000 m-mainly, you know, at the, at the maximum.

(Footage of World Halal Food Council Meeting, May)

EKREM ÖZYÜREK: Halal therefore is not a creation of mankind. It's an order from Allah, Subhanahu wa ta'ala.

GEOFF THOMPSON: In May the ICCV's school in Victoria was host to a meeting of the World Halal Food Council.

ESAD ALAGIC, CHAIRMAN, ISLAMIC CO-ORDINATING COUNCIL OF VICTORIA: Halal, my dear brothers, dear friends, is not human writing law.

GEOFF THOMPSON: It's one of the groups jockeying to dominate the global halal market.

ESAD ALAGIC: Those who don't like it: they have bad luck, because we cannot change it. We just have to do our job.

GEOFF THOMPSON: The World Halal Food Council is run by the Majelis Ulema Indonesia - or MUI...

Thank you. Salaam Alaikum.

(Applause)

...a leading Islamic body in the world's most populous Muslim nation.

The MUI's halal chairman, Amidhan Shaberah, and its halal director, Lukmanul Hakim, decide who gets access to the lucrative Indonesian market.

LUKMANUL HAKIM, DIRECTOR, HALAL CERTIFICATION, MUI: And Muslims are expected to account to 30 per cent of the world population by 2025.

GEOFF THOMPSON: They reject government interference in the halal trade.

LUKMANUL HAKIM: Standing position of the World Halal Food Council for halal is very clear: halal is come from the Muslim, from the Islamic law.

Thank you. Salaam Alaikum.

GEOFF THOMPSON: Indonesia's MUI and the Islamic Co-ordinating Council of Victoria (the ICCV) have a very cosy relationship.

The ICCV has a monopoly on certifying red meat exports from Victoria to Indonesia.

EKREM ÖZYÜREK: Yes. I mean, with certain organisations, they have a monopoly in everything. So if- if, ah, they just go with ICCV, well, that means they've, um, they've chosen to go with them. And if you, um, have a good relationship with certain people, you want to continue that relationship.

GEOFF THOMPSON: Four Corners' search for the truth about halal in Australia took us to Indonesia. Here, the gatekeeper to more than 200 million Muslim consumers is the Majelis Ulema Indonesia - the MUI.

(To Lukmanul Hakim) Does MUI approve halal certifiers in Australia for free?

LUKMANUL HAKIM: Oh yes, of course. There is no charge for that. They have follow our regulation, our standard of the halal. That's it. There is no charge for that.

GEOFF THOMPSON: For 16 years Mohammed El-Mouelhy had MUI permission to halal-certify Australian exports to Indonesia.

MOHAMED EL-MOUELHY: They are making monopolies and that is against my principles and against my religion - and theirs.

GEOFF THOMPSON: Nine years ago, El-Mouelhy organised for MUI officials to tour Australia and meet with a group of certifiers seeking access to the Indonesian market.

El-Mouelhy says he had to pay costs and provide cash totalling $28,000 to the visiting MUI officials.

(To Mohamed El-Mouelhy) And in your mind, that was a bribe?

MOHAMED EL-MOUELHY: In my mind, ah- in er-er, you know, as a, as a, as an after-fact: yes, it is a bribe.

GEOFF THOMPSON: But you paid it nevertheless.

MOHAMED EL-MOUELHY: I paid something, yes. But I-I, at no cir- at a-, under no circumstance was I to pay for Indonesia, for MUI or for anybody any money after that.

LUKMANUL HAKIM (laughs): I don't know, because at that time I have - I'm not yet director, actually.

GEOFF THOMPSON: The MUI's halal director, Lukumanul Hakim, says his organisation does not accept bribes: only money for travel expenses.

LUKMANUL HAKIM: So for the certifier who will be recognised by us, they must, um, ah, they must, ah, provide for the expenses: transportation, hotel, ah, meal and et cetera. So this is not kind of the- a b- br-bribe, bribe.

GEOFF THOMPSON: It's not a bribe: it was a normal business expense?

LUKMANUL HAKIM: Normal business.

GEOFF THOMPSON: Four Corners has learned that there is a global pattern of complaints about the MUI expecting payment from halal certifiers.

For example, splitting the profits is discussed. An Indian certifier talks about under-the-table payments and another certifier from Europe complains of having to transfer money to an MUI official.

(To Mohamed El-Mouelhy) And are people paying today?

MOHAMED EL-MOUELHY: Yes. Yes. All of them are. There are 43 organisations that belongs to MUI and all of them are paying. And anyone who says they are not paying: they're lying through their teeth.

GEOFF THOMPSON: The MUI says there is no proof of impropriety.

LUKMANUL HAKIM: The- I don't, I don't, I don't believe that the bribe. There is no bribe, because based on our report, how can you do a bribe? I don't know. I-I have, I-I don't think so.

IKEBAL PATEL, PRESIDENT, AFIC 2007-12: Around the world, if you wanted to get certification rights for Indonesia then you had to do what it takes. And, ah, when I was the president I wasn't prepared to do that.

GEOFF THOMPSON: Ikebal Patel was president of the Australian Federation of Islamic Councils - known as AFIC - for five years until 2012.

IKEBAL PATEL: MUI officials insist on travelling out on first class tickets. They insist on staying in a certain, ah, level of accommodation. They insist on a per diem allowance. Um... Who is going to cross them?

GEOFF THOMPSON: So they are the gatekeepers to Indonesia?

IKEBAL PATEL: Absolutely. Absolutely.

GEOFF THOMPSON: In 2011, while AFIC's president, Ikebal Patel wrote to the MUI offering $10,00, along with a 70:30 split of the profits, in exchange for halal certification rights.

IKEBAL PATEL: We made it very clear that this money was to go to MUI, but not to individuals. And, and that's something that I was very, very clear about.

GEOFF THOMPSON: if it was going to an individual, would it be a bribe?

IKEBAL PATEL: Yeah, absolutely. I mean, ah, we wanted to make sure that, ah, I as the president of, ah, the federation at the time wanted nothing to do whatsoever with, ah, making, ah, a, a, ah, a bribe to individuals.

GEOFF THOMPSON: Four Corners has established that two years ago AFIC offered $20,000 to the MUI to help it build a new office.

(To Amjad Mehboob) Why did AFIC feel a need to give the MUI $20,000?

AMJAD MEHBOOB: Well, ah, one might think that it, ah, it may have some links with halal. It c- it may have been but, ah, it was...

GEOFF THOMPSON: Was it about securing...

AMJAD MEHBOOB: ...thoroughly debated...

GEOFF THOMPSON: Was it about securing the market?

AMJAD MEHBOOB: Well, ah, not really. Not really, because they all agreed. And I was w- from NSW: that, yes, well, you know, it's, it's a good idea to offer them, ah, some assistance...

GEOFF THOMPSON: Twenty thousand dollars?

AMJAD MEHBOOB: ...in the project. Yeah, in the project.

GEOFF THOMPSON: But to do with halal certification?

AMJAD MEHBOOB: Not really. I mean, it was not put that way.

GEOFF THOMPSON: But...

AMJAD MEHBOOB: People can make, ah, er, something out of it. But that was not the, you know, I mean...

GEOFF THOMPSON: It wasn't- it wasn't a payment to try and ensure certification rights for AFIC in Indonesia?

AMJAD MEHBOOB: No, no. It was not.

GEOFF THOMPSON: Are you sure?

AMJAD MEHBOOB: Yeah, absolutely.

GEOFF THOMPSON: For some reason, the $20,000 cheque was knocked back.

(To Amjad Mehboob) Is it because it was a cheque and not cash?

AMJAD MEHBOOB: Well, (chuckles) I don't know how it was taken. I-I-I ca- I, I mean, frankly I don't: whether it was a bank cheque or... or a - could have been a bank cheque, I suppose. Because how, how can you carry $20,000? (Laughs)

GEOFF THOMPSON: On a narrow back road south of Jakarta, Four Corners followed a money trail of halal profits travelling from Australia to Indonesia.

Here in Jonggol, West Java, we found some of Australia's halal funds hard at work.

The workers here tell us that this mosque for 1,000 worshippers is the first stage of a sprawling $5 million development. We've also confirmed it's being built by a foundation linked to the MUI's halal chief, Amidhan Shaberah. The workers also say it's being funded with money from Australia.

(Footage of Geoff Thompson and construction manager looking at building plans of mosque)

CONSTRUCTION MANAGER: Glass, glass, glass.

GEOFF THOMPSON: The mosque's construction manager guided us through the detailed building plans.

(To construction manager) So this is the kitchen, this is the office?

CONSTRUCTION MANAGER: Yeah. Office, office, auditorium - office, auditorium, class, mess, kitchen...

CONSTRUCTION MANAGER (translation): Supporting infrastructure, swimming pool, football field.

GEOFF THOMPSON: Spanning five hectares, the extensive development includes a mosque, an orphanage, accommodation and administration offices - funded with help from Australian certifier the Islamic Coordinating Council of Victoria - the ICCV.

(To construction manager) How much is all this going to cost?

CONSTRUCTION MANAGER (translation): We need funding of about 50 billion, 50 billion (rupiah).The mosque alone will be about 6 to 7 billion (rupiah). About 50 billion.

GEOFF THOMPSON: So all of this will cost about $5 million Australian?

CONSTRUCTION MANAGER (translation): Yes. About 5 million.

GEOFF THOMPSON: Who's paying for this? Who's, who's building it?

CONSTRUCTION MANAGER (translation): The funding comes from donors. The foundation asks for donations. They come from Australia, from Saudi Arabia, from the Middle East, the donations.

GEOFF THOMPSON: He tells us the site has been visited by Australians two or three times.

CONSTRUCTION MANAGER (translation): Australia is the strongest. You could say Australia, but we don't know where most will come from yet. We will have to ask the foundation, to ask Pak Amidhan for the precise details.

GEOFF THOMPSON: Pak Amidhan?

CONSTRUCTION MANAGER (translation): Yes. Amidhan's the foundation Head.

GEOFF THOMPSON: Victorian certifier the ICCV has confirmed it's contributing money to this mosque and orphanage complex - but hasn't told us how much.

EKREM ÖZYÜREK: They were building a school or a mosque and they needed some money. And that money, ah, being like- yes, that, there could be a donation to them: yes.

GEOFF THOMPSON: I think you said before that the money from halal certification earned by ICCV stays in Australia?

EKREM ÖZYÜREK: Generally, yes. Yes.

GEOFF THOMPSON: Except...

EKREM ÖZYÜREK: But in the- in the...

GEOFF THOMPSON: Except when you give it to...

EKREM ÖZYÜREK: Yeah, except - look, ah, like, um, it's, if the MUI said, "Look, we are doing something. We are in need of money. Ah, can you help us in any way?": yes. Th- there's a possibility, yes. But we know that it's going for the purpose of orphanage or something they are building and they need that money to- to build that orphanage or, or a mosque or, um, or, um, th-that kind of a thing: that there's a possibility that mu- some money might be given to them, yes.

GEOFF THOMPSON: There is nothing to suggest that this mosque development in Indonesia has any connections at all with terrorism or radical Islam.

Overseas, some halal certifiers have been linked to Islamic charities accused of assisting groups like Hamas and Hezbollah.

Cory Bernardi claims the same thing is happening here.

CORY BERNARDI: One of the Islamic certifiers quite proudly boasts about supporting, ah, an international charity which has been found to support Hamas and Hezbollah, which are both proscribed organisations. So the links may be tenuous. They may be more direct than, than we know but, um, you know, extremism is being funded by somewhere and it'd be nice to know where it is.

GEOFF THOMPSON: Hamas itself is not a proscribed terrorist organisation in this country.

CORY BERNARDI: Well, there you go.

GEOFF THOMPSON: I mean, I think the, the- its militant brigades are, ah, but not Hamas.

CORY BERNARDI: Well, look, I- I look, I don't have a list of all the proscribed, ah, terrorist organisations in this country. But, you know, um, I think you're, you're drawing a, ah, ah, a distinction between the militant brigades. I mean, organisations are linked in together and, you know, one of the big concerns that we have is that there are groups out there that want to do our way of life, our culture and, indeed, Australians harm.

GEOFF THOMPSON: Mohammed El-Mouelhy has been the main target of these claims in Australia. He gives generously to Islamic charities, including Human Appeal International.

HAI has been named overseas as a suspected fundraiser for Hamas by the US and Israeli governments. HAI's Australian branch told Four Corners it has never funded Hamas or any of its affiliates.

MOHAMED EL-MOUELHY: The Human Appeal International distribute the things directly to the poor. They don't go through a third organisation. OK, so, um, if I say to them, "I want this money going to a Palestinian," they go there and they give it to the people themselves. They don't go to Hamas and say, "OK, here it is. Er, you distribute it to the people that you, ah, think, uh, fit."

GEOFF THOMPSON: If it was established...

MOHAMED EL-MOUELHY: It doesn't happen.

GEOFF THOMPSON: ...that they were giving the money to Hamas...

MOHAMED EL-MOUELHY: They don't give money; they give food.

GEOFF THOMPSON: But if, if it was established the aid was going to Hamas or its militant wing?

MOHAMED EL-MOUELHY: Then I'll look for another organisation.

GEOFF THOMPSON: We asked Federal Government authorities if they had any evidence of terrorist links to Australia's halal industry.

The Australian Crime Commission says it "is not aware of any direct links."

ASIO referred us to Australia's financial intelligence unit, AUSTRAC, which says: "There is no evidence to support the claims that halal certification fees fund terrorism."

But for anti-halal campaigners, that absence of proof will never be proof of absence.

KIRRALIE SMITH: There's no direct evidence, but most (laughs) most criminal activity doesn't have direct evidence. So I think it's, that's an illegitimate argument, I guess, that is thrown up in our faces a lot.

MIKE HOLT: You have to look at the, at the connections between the people involved and the groups involved. Because then you start to see all of the links and connect the dots.

GEOFF THOMPSON: But you, you can't connect those dots?

MIKE HOLT: Yes, we can. But we just don't have…

GEOFF THOMPSON: Well, can, can you connect them for us now?

MIKE HOLT: Not right now. I mean, (laughs) I don't have all the information in front of me.

It's pretty obvious, isn't it?

GEOFF THOMPSON: Well not, not to me and no- and not to, ah, the Australian Crime Commission or to AUSTRAC...

MIKE HOLT: Well, that's…

GEOFF THOMPSON: ...which, which, who both say there are, there is no evidence or at least they have no information suggesting direct links between halal certification and terrorism.

MIKE HOLT: Well, a lack of information doesn't s, doesn't show that it's not there, does it. All it means is that they haven't done their homework properly.

BARNABY JOYCE: Well, if I could talk to their fear and say, well, there's money that is going from here to nefarious causes: if that is the case, we've got this group of people. They're ha-hard to find but they're called ASIO and they watch that very closely. We've got another one called the Federal Police.

Um, and, you know, if you want to get in a tangle with them, well, good luck. Um, they will know vastly more about what's going where than most other people.

GEOFF THOMPSON: It's hard to imagine any halal certification system that would satisfy the anti-Islam movement.

There is clearly a need for greater transparency and accountability, but the more alarmist claims about halal appear to be unfounded.

Most Australian shoppers are paying for halal certification - but reaping its benefits, too.

DANNY BURROWS: I can say with absolute confidence that the costs of halal certification are absolutely passed on to the Australian consumer, as are the costs of any other certification, be it or-organic or Heart Foundation; as are the costs of packaging, labelling and design; as are the costs of the CEO's morning coffee and postage stamps.

But what's also passed on are savings generated by the economies of scale. And, and that is simply that it's far more cost effective to produce things in large quantities for larger markets than it is for smaller markets. So, in fact, having a halal certification and by opening up new, vast international markets and thereby allowing that economy of scales be generated makes it in fact cheaper for the Australian consumer.

BARNABY JOYCE: It doesn't worry me that it's halal. It doesn't worry me if the Seventh Day Adventists did it. It doesn't worry me if the Buddhists, ah, br- brought forward some new curry. It doesn't worry me if I go to an Indian restaurant and the chef is, the chef is Hindu.

It doesn't worry me because, even on the premise of my religion, I don't have to worry about what goes into the mouth: I only have to worry about what comes out.

MOSHE GUTNICK: Are we going to stop shopping at shops where the shopkeeper is a Muslim, because he may give his, um, profits to, um, his local mosque? Are we going to stop shopping, um, in a Jewish shop because the profits may go to some Jewish, um, synagogue?

I-I don't think that's the Australia that, ah, we know and love.

KERRY O'BRIEN: Sounds like a reasonable question.

If you're interested, the Senate hearings into food certification will report back in November.

That's the program for tonight. Until next Monday, good night.

END

Background Information

ABC FACT CHECK FINDINGS

VIDEO ABC Fact Check Facebook - Not sure what halal food is? Watch this explainer.

VIDEO ABC Fact Check Facebook - Does halal certification fund terrorism?

ABC Fact Check - Halal certification, food exports and terrorism fact file.

RELATED NEWS AND MEDIA

Australian halal certifiers offer payment in attempts to ensure greater access to Indonesian market | ABC News | 7 Sep 2015 - www.abc.net.au/news/2015-09-07/halal-certifiers-offer-payment-for-indonesian-market-access/6753126

Halal-approved funds paid by Australian companies are being used to build mosques and religious schools in Indonesia | Daily Mail Aus | 7 Sep 2015 - www.dailymail.co.uk/news/article-3224581/Halal-approved-funds-paid-Australian-companies-used-build-mosques-religious-schools-Indonesia.html

'Halal inquiry' not warranted but could help to eradicate myths: Australian Food and Grocery Council | ABC Rural | 27 Aug 2015 - www.abc.net.au/news/2015-08-21/halal-inquiry-livestock-exports-beef-lamb-poultry-certification/6714244

National audit being conducted into third party certifiers including halal and kosher organisations | ABC Rural | 24 Aug 2015 - www.abc.net.au/news/2015-08-24/halal-certifiers-review-kosher/6719114

Halal certifiers subject of confidential government review | SMH | 21 Aug 2015 - www.smh.com.au/federal-politics/political-news/halal-certifiers-subject-of-confidential-government-review-20150821-gj4vq2.html

AUDIO Muslim leaders reportedly sign agreement to control halal certification market | Radio National | 25 May 2015 - www.abc.net.au/radionational/programs/breakfast/muslim-leaders-reportedly-sign-agreement/6493756

Halal in Australia: Top questions on halal certification explained by Australian Food and Grocery Council | Adelaide Advertiser | 19 May 2015 - www.adelaidenow.com.au/news/national/halal-in-australia-top-questions-on-halal-certification-explained-by-australian-food-and-grocery-council/story-fnu4we2a-1227359887153

VIDEO Interview with Liberal Senator Cory Bernardi | Lateline | 18 May 2015 - www.abc.net.au/lateline/content/2015/s4238398.htm

Food industry back Senate certification inquiry, hopes to address 'misinformation' about halal | ABC Rural | 14 May 2015 - www.abc.net.au/news/2015-05-14/senate-to-hold-inquiry-into-halal-other-food-certification/6470112

Why 'Halal Tax' Conspiracy Theories are So Hard to Stomach, by Shakira Hussein | ABC Religion and Ethics | 15 Apr 2015 - www.abc.net.au/religion/articles/2015/04/15/4217025.htm

The peak body for Australian food and drink manufacturers says its members have no plans to ditch halal certification | The Guardian | 11 Nov 2014 - www.theguardian.com/australia-news/2014/nov/11/food-and-drink-manufacturers-have-no-plans-to-ditch-halal-certification

AUDIO What's the big fuss about Halal certification? | Bush Telegraph | 27 Oct 2014 - www.abc.net.au/radionational/programs/bushtelegraph/halal/5843904

Denmark bans kosher and halal slaughter as minister says 'animal rights come before religion' | The Independent UK | Feb 2014 - www.independent.co.uk/news/world/europe/denmark-bans-halal-and-kosher-slaughter-as-minister-says-animal-rights-come-before-religion-9135580.html

LINKS AND RESOURCES

The Senate Inquiry into third party certification of food. Read Submissions - www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Food_Cert_Schemes/Submissions

Facts about Halal Certification | Australian Food & Grocery Council | @AusFoodGrocery - www.afgc.org.au/about-afgc/our-policies/halal-certification/

Anti-money laundering and counter terrorism financing | Attorney-General's Dept - www.ag.gov.au/CrimeAndCorruption/AntiLaunderingCounterTerrorismFinancing/Pages/default.aspx