Sheraton Mirage Resort owners say their link to Indian scam company came from Australian Government

TWO Gold Coast businessmen linked to a $10-billion Indian Ponzi scam claim they were involved with the disgraced company because the Australian Government connected them to it.

25/2/2016: L-R Paul Brinsmead and Peter Madrers, founders of MiiGroup, in front of the Sheraton Mirage on the Gold Coast.They paid Austrade $5,000 a month to due due dilligence on Pearls India, which tuned out to be a major ponzi scam. They say they were misled by the government. They are willing to work fully with the Indian authoroties to return $130m owed to Indian investors. Lyndon Mechielsen/The Australian

TWO Gold Coast businessmen linked to a $10 billion Indian Ponzi scam claim they were involved with the disgraced company because the Australian Government connected them to it and helped facilitate their purchase of the Sheraton Mirage resort.

Peter Madrers and Paul Brinsmead are directors of Sheraton owners Miigroup, formerly known as Pearls Australasia, which was founded by Nirmal Bhangoo, an Indian who is in jail for his role in the alleged fraud of 50 million investors.

Indian authorities have been investigating the Pearls Group since 1997, yet representatives from the Federal Government’s Austrade office endorsed them to Australian company directors as ideal investors.

Nirmal Singh Bhangoo.

In a statement through his PR firm, Mr Madrers said Australian company directors were introduced to Pearls India by Australian Government officials in 2009.

“The Australian Directors engaged with the High Commissioner, the Trade Commissioner, the Deputy Trade Commissioner and Senior Executives of Austrade in India who actively recommended and encouraged the investment by Pearls India,” he said.

“Representatives of Austrade also participated in tours across India, introducing the Australian directors to Pearls India, its projects and the opportunities Pearls India presented as an investor.”

Mr Madrers said he had written to Indian authorities more than two weeks ago “requesting urgent meetings” but had not heard back.

The pair have been fighting the Australian Government over a disputed $2 million tax debt and were due in the Supreme Court yesterday.

Mr Madrers said their application had been adjourned and “that matter has been settled now — it’s ancient history”.

Steve Ciobo.

Newly-minted Trade Minister Steve Ciobo was unavailable for comment yesterday but his office sent a statement saying Austrade “takes the claims very seriously and are conducting a detailed investigation”.

The statement said it was not Austrade’s responsibility to investigate foreign companies it endorsed to Australian companies.

“Austrade advises they never undertake due diligence on behalf of Australian businesses,” the statement said.

Sheraton Mirage on the Gold Coast.

“Austrade always advises clients to undertake their own due diligence before entering into commercial arrangements.

“Any wrongdoing uncovered in the investigation will, of course, be referred to the appropriate authorities.”

The statement said the type of bonus of up to $25,000 reportedly made to a highly-ranked Austrade official who made the Pearls introduction would not happen in 2016.

“Bonuses were phased out in 2010 for senior executive staff, 2012 for non-executive staff, and 2013 for overseas-engaged employees,” it said.