News National Clive Palmer denies potential jail risk

Clive Palmer denies potential jail risk

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Clive Palmer says a damning report about his alleged mismanagement of Queensland Nickel is a “fantasy” and no court will rule against him.

Administrators said there was evidence the federal MP used Queensland Nickel as a “piggy bank” and could be pursued for about $200 million that was transferred to his other business interests.

FTI Consulting, the administrator, believes Mr Palmer may have gained directly and indirectly while acting as a shadow director of Queensland Nickel and has pointed to the possibility of criminal offences under the Corporations Act.

Nickel creditors advise liquidation
• Clive Palmer denies being a shadow director
• Palmer had final say on refinery: documents
• Palmer-owned firms take on case

Administrator John Park said there was evidence Mr Palmer was recklessly siphoning money from Queensland Nickel to his other entities for years, and that the refinery could have stayed afloat another few years had the money been repaid to it.

According to Mr Park, administrators are planning to pursue Palmer for $73 million in employee entitlements and $116 million in unsecured claims.

“Both Mr Mensink and Mr Palmer, in our view, appear to have been reckless in exercising their duties and powers as directors of QN,” reads the damning report.

“Ultimately, the determination of whether the directors have breached their duties will be made by a court.”

FTI Consulting claims $224 million was paid from QN to Palmer-directed entities such as his Coolum resort and the Palmer United Party (PUP).

Mr Palmer was also found to have allegedly transferred millions of dollars to himself and family members on a single day.

The 787 sacked refinery workers will vote on a course of action next week.

The report reccommends liquidating the company and pursuing funds from Mr Palmer’s other companies.

But the PUP leader has accused the directors of fudging the report, maintaining he has done nothing wrong and that the money flowing to other businesses never belonged to Queensland Nickel in the first place.

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