Liberal Party donor Sally Zou told business associate she had ‘millions’ at her disposal, court hears

Mining magnate and prominent Liberal Party donor Sally Zou told a business associate she was related to the head of one of China’s largest companies, a court has heard.

Mining magnate and prominent Liberal Party donor Sally Zou told a business associate she was related to the head of one of China’s largest companies and they would both become “very rich” by working together, a court has heard.

The relationship soon soured however, and her former business partner, commodities trader Anthony Smyth, is now suing Ms Zou for more than $10m in lost commissions, plus damages.

Mr Smyth has filed a claim in the Federal Court, seeking to be paid commissions and other costs for several contracts he set up with resources companies including Swiss trading house Glencore.

The contracts would have been worth hundreds of millions of dollars, with both Mr Smyth and Ms Zou to have earned commissions on significant amounts of coal, iron ore and diesel destined for China, according to Mr Smyth’s claim.

INSIDE STORY: WHO IS SALLY ZOU?

Mr Smyth told the court this week that he had confidence in Ms Zou’s ability to finance the deals, because she showed him documents indicating her company, Australia Gloria Energy, had $US18.6bn in the bank, and also that she personally had $US120m at her disposal.

Mr Smyth also told the court that Ms Zou told him that her uncle was the head of Sinosteel – one of the largest mining and steelmaking companies in the world.

Ms Zou, in her defence filed with the court, denies Mr Smyth is owed anything, and has asked that the matter be dismissed.

Chinese entrepreneur Sally Zou in Adelaide. Picture: Jo-Anna Robinson

When contacted by The Advertiser about the claim that she was talking up her connections with Sinosteel, she said: “This matter is in dispute before the court and I will be vigorously defending myself against these false claims, but it would be inappropriate for me to comment further at this time”.

In document filed with the court she denies she would have made any assertions to Mr Smyth about her personal financial situation at the early stage in their relationship when it was alleged she did so.

Ms Zou has gained prominence in recent years through her generous donations – more than $1.7m since 2015 – to the Liberal Party at the state and federal level.

She also once set up a company called the Julie Bishop Glorious Foundation, later shortened to Glorious Foundation, and also sponsored the Port Adelaide Football Club at one point.

In 2018 Ms Zou’s company Aus Food Alliance settled a Supreme Court case in South Australia over a claim for $414,000 made by Torrens Valley Orchards for an alleged failure to pay for 32 tonnes of cherries.

Torrens Valley was attempting to have Ms Zou’s company, Aus Food Alliance, wound up for non payment. The company’s lawyers had argued that the produce was not of saleable quality.

That matter was settled confidentially.