Space Centre Australia CEO James Palmer under fire from former staff after separate business bust

A former employee of Palm Branch Group - which recently went into liquidation owing almost $800,000 - has disputed recent claims by CEO James Palmer that the business operated independently of Space Centre Australia.

James Palmer, CEO of Space Centre Australia, has come under fire from former staff after his another of his companies, Palm Branch Group, went into liquidation. Picture: Brendan Radke

A former employee of insolvent Cairns business Palm Branch Group has disputed claims by its former director that there was no connection between it and another of the director’s companies, Space Centre Australia.

Palm Branch Group was put into liquidation on December 18 by then director James Palmer, who is also the CEO of Space Centre Australia, a planned multi-use spaceport in Cape York.

Mr Palmer has previously asserted no connection existed between Palm Branch Group and SCA, and that Palm Branch Group did not operate to advance the SCA project.

A slide show presentation on Space Centre Australia’s website states “SCA began as an internally privately financed project through Palm Branch Group”, under the presentation banner “financing”.

Attendees at the Space Centre Australia workshop at Cairns Regional Council's Spence St office in April, 2023. Sources have claimed contractors involved with the event were not paid on time by Mr Palmer. Picture: Isaac McCarthy

Nick Mullings, a former business development director at Palm Branch Group, has claimed much of the work he did while employed by Palm Branch Group was actually for developing and delivering the SCA project.

Mr Mullings also claimed Mr Palmer entered into contracts with businesses throughout Far North Queensland while salaries and superannuation entitlements belonging to several employees working on the SCA project had not been paid.

“I want Space Centre Australia to be a success. I think it would be great for Queensland and great for Australia. But what I would like to do is make sure people are informed before doing business with James,” he said.

Mr Mullings said some staff had not been paid entitlements or superannuation, and contractors had not been paid on time.

“I am not aware the SCA project has a financial foundation,” he said.

An initial concept diagram of the planned SCA spaceport. Mr Palmer said SCA and Palm Branch Group were structured as separate entities. Picture: Supplied

Mr Mullings is owed $60,000 as a Palm Branch Group creditor, according to documents lodged with the Australian Securities and Investments Commission.

But the total actually owed to Mr Mullings is more than $111,000 according to a close out letter sent from Mr Palmer to him, seen by the Cairns Post.

Mr Palmer rejected all claims made by Mr Mullings.

“It is incorrect that the vast majority of work undertaken by Mr Mullings was for the purpose of advancing SCA,” he said.

“Staff transition away from Palm Branch Group was managed as best we could. Through the liquidation process, all of the staff have full access to the fair entitlements guarantee. That will provide them with outstanding compensation.

“We manage our finances appropriately and in accordance with agreed terms. We will not make any further comment on our internal finances, contracts or commercial dealings.”

A virtual design of the SCA project. Staff employed by Palm Branch Group have claimed much of their work was for the purpose of advancing SCA. Mr Palmer said this was incorrect. Picture: SCA

According to several sources, Space Centre Australia also still owes thousands of dollars to at least one Far North business, as well a significant sum to a company based in the UK.

Mr Palmer said there were no invoices owed by Palm Branch Group or SCA outside of Australia.

“Creditors owed by Palm Branch Group are being dealt with by the administrator. SCA is a separate entity and is unrelated to Palm Branch Group,” he said.

According to sources, Space Centre Australia also owed thousands of dollars to other businesses in Cairns after running an industry workshop at Cairns Regional Council’s office in April 2023; the money was paid, but significantly later than agreements stipulated in contracts between his entities and the contractors, and after legal action was threatened by at least one contractor.

“Ahead of the workshop, I raised concerns with James about the company’s financial situation and suggested that the event should not go ahead because he still owed his employees and other contractors money,” Mr Mullings said.

Space Centre Australia has interests in land at Pulsand Bay, near Bamaga, where Mr Palmer has said he is close to settling a property purchase.

One contractor, who requested anonymity, said payment was not received from Space Centre Australia in accordance with agreements, and payment eventually came several months after the event and after a legal threat was issued to Space Centre Australia.

“I would only do business with (Space Centre Australia) again if we were paid in advance,” the contractor said.

“It seemed strange to us. A space port would take millions of dollars to build. How is he going to build that when he can’t even pay a few thousand dollars for the services of my business.”

Mr Palmer acknowledged that he was approached ahead of the event about financing concerns, but rejected that he was late in paying contractors.

He said any suggestion he had not paid employees or contractors was “a complete fabrication”.

“Nick Mullings approached me, but he was not properly informed as he was not responsible for financial management. The forum went ahead as planned and was highly successful,” he said.

According to a report by a liquidator, Palm Branch Group owes $661,250 to creditors, including $218,000 to former employees, $380,000 to the ATO and $63,250 to another Australian business.

According to Mr Palmer’s summary of Palm Branch Group’s assets and liabilities, filed with the Australian Securities and Investments Commission, the company had a total deficiency of $787,690, with no assets listed.

Mr Palmer said he had not engaged in any wrongdoing.

“I was a director of Palm Branch Group, but I also delivered the services of Palm Branch Group. I therefore, rightly, paid myself a salary, and I used my own salary to finance SCA. That is the only link that existed between the two companies. They are structured as separate entities,” he said.

“No debt incurred by Palm Branch Group was ever used to finance the SCA project. SCA’s current and past financing has been sourced from my own personal wealth.”

Originally published as Space Centre Australia CEO James Palmer under fire from former staff after separate business bust