Cook rules out MinRes money return despite ‘disappointing’ tax scandal

Premier Roger Cook has expressed his disappointment with the tax evasion scandal engulfing miner Mineral Resources and its soon-to-be ex-boss Chris Ellison, but ruled out handing back $9000 in donations the miner made to WA Labor.

Cook told ABC Radio on Tuesday he was “very disappointed” by Monday’s revelations Ellison, founder of the major West Australian iron ore miner, had been found to have engaged in financial misconduct and would be stood down as managing director within 18 months.

WA Premier Roger Cook last week.Credit: Ross Swanborough

The premier pointed out the miner was a large employer in WA, with more than 7000 staff on the payroll between its Osborne Park headquarters and its operations across the state, and a host of mum-and-dad investors had put their faith in the company.

“We want our companies to be run properly, and people should have confidence that when someone is at the helm of a publicly listed company, they do the right thing,” he said.

“I hope the company can move through this transition because we want it to go on and continue to do some great things in our resources industry.”

Cook declined to be drawn on whether the billionaire should have been afforded another year at the helm, insisting he would not comment on the board’s handling of the matter.

“I think we have now, by virtue of the statement that was made by Mineral Resources yesterday, a set of facts which are indisputable,” he said.

“I think Mineral Resources Limited should obviously reflect on those, and I’m sure the board will make a decision in the best interests of the company because that’s what they’re there to do; to protect the interests of the shareholders.”

But the premier stopped short of promising to return a $9000 donation WA Labor accepted from the miner in July, while the state government was mulling changes to the gas policy which ultimately benefited gas assets MinRes has now sold to Gina Rinehart’s Hancock Prospecting for $1.1 billion.

Cook said that was a matter for the Labor Party, but said it was likely the listed company had made donations across the political spectrum.

“Well, this is an issue for the Labor Party to resolve, but there’s no reason I would see why we’d be in a position to reconsider those donations,” he said.

“Obviously they had a very strong and charismatic chief executive that was at the helm of that company, but they’re now moving through a transition phase, and we’ll continue to work with them, like we do all resource companies in WA.”

The comments came as the WA Greens called on Cook and his government to “come clean” on the nature of its relationship with MinRes and Ellison, given its lobbying to relax restrictions on the exporting of onshore gas and the fact former premier Mark McGowan is on the payroll.

Greens MLC Brad Pettitt said he believed many people would now be questioning the relationship between Mineral Resources and the state government.

In a statement released on Monday, the mining giant’s board revealed a probe into allegations Ellison had engaged in a tax evasion scheme using offshore entities — first published by the Australian Financial Review last month — had concluded the billionaire used company resources for personal gain.

The probe also found the miner had provided financial benefits to related parties, with rent paid to entities in which he had an interest, staff directed to work on his personal property — including his boat — and finances and relief afforded to entities tied to his daughter Kristy-Lee Craker.

It was also uncovered that emails related to the company at the centre of the scheme were deleted in 2019 around the time Ellison began self-disclosing to the tax office.

The billionaire will repay almost $3.8 million in funds owed, forfeit bonuses tipped to be worth $9.6 million and make charitable donations totalling $5 million over the coming years.

Ellison, who founded the $7 billion company and remains its largest shareholder with an 11.5 per cent stake, said he was “deeply sorry” for his conduct and the impact on the company’s reputation.

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