Corporate watchdog Australian Securities and Investments Commission digs into Queensland Nickel

AUSTRALIA’S corporate watchdog has begun a formal investigation into Clive Palmer’s former company Queensland Nickel.

The Australian Securities and Investments Commission will investigate the collapse of Clive Palmer’s Queensland Nickel; Mr Palmer’s plane has been put up for sale with an asking price of $7.5 million.

AUSTRALIA’S corporate watchdog has begun a formal investigation into Clive ­Palmer’s former company Queensland Nickel.

While the Australian Securities and Investments Commission had been circling the failed company for some time, it had been waiting on a report from liquidators before deciding whether to proceed.

A formal investigation opens up a range of investigative options to the watchdog, including compelling people to attend an examination and applying for a search warrant. An ASIC spokeswoman ­yesterday confirmed for the first time an official investigation had begun.

While she could not elaborate on the nature of the investigation, ASIC Commissioner John Price told a Senate Estimates committee in February that they were looking into the company.

At the time, Mr Price said ASIC was working closely with the company’s administrators and matters being looked into included the reason for the company’s collapse, issues around donations made to the Palmer United Party, its financial reporting and unpaid employee entitlements.

Whether or not there were any “shadow directors” acting at QN also was being looked at.

“We will be looking at who made particular decisions at what period of time and were they in the best interests of the company,” Mr Price said in February before a formal ­investigation had begun.

Liquidators FTI Consulting, in the second creditors report, alleged Mr Palmer had been acting as a “shadow director” – running QN while not being registered as its ­director.

There have been media reports, through leaked emails, that Mr Palmer had been signing off on expenses at QN using a Yahoo email address under the name “Terry Smith” – which Mr Palmer has denied.

But he has said he was chairman of a joint venture which included QN and two of his other companies, which entitled him to give directions.

Under the Australian Securities and Investments Commission Act 2001, ASIC is able to compel people to take part in examinations and interviews. It is an offence not to attend an ASIC examination without a reasonable ­excuse.

ASIC is not limited to calling the person or people under investigation, but can call anyone it thinks may have relevant information.

Queensland Nickel entered voluntary administration in January and was put into liquidation in April owing creditors about $300 million, according to the administrators report.

Mr Palmer did not return request for comment.

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COMMENT: INQUIRY MAY GIVE WORKERS SOME ANSWERS

WHEN Queensland Nickel (QN) collapsed about 800 workers lost their jobs and dozens of creditors were owed a total of $300 million, but businessman Clive Palmer said he bore no responsibility for it.

Matthew Killoran.

Now that statement will be put to the test.

The Australian Securities and Investments Commission has started a formal investigation into matters related to QN.

Those workers sacked from the Yabulu nickel refinery and the creditors left out of pocket will be interested in ASIC’s findings. It is important to note that an investigation is not a finding that there has been any wrongdoing, but an opportunity for the authorities to look into allegations that have been raised.

Mr Palmer said he retired from business in 2013 when he was elected to the federal ­parliament and his nephew Clive Mensink was the company’s director.

But he sporadically took over the reins as director, sometimes for just days at a time, while leaked emails suggest he continued to sign off on expenses while not a director, a claim that Mr Palmer denies.

The corporate watchdog will forensically examine the evidence and determine if there had been any wrongdoing occurring at QN before its collapse.

Perhaps former workers will also receive some answers as to why they lost their jobs.

- Matthew Killoran