Darwin company Halikos takes legal action over Inpex’s alleged contract breach

FORMER chief minister Adam Giles endorsed gas giant Inpex’s move to award a contract to Halikos Group over dinner at Hanuman restaurant — a deal that went sour and is now the subject of a civil trial

FORMER chief minister Adam Giles endorsed gas giant Inpex’s move to award a contract to Halikos Group over dinner at Hanuman restaurant — a deal that went sour and is now the subject of a civil trial.

The NT Supreme Court heard Halikos managing director Shane Dignan nagged Inpex officials Sean Kildare and Chris Wheeldon about signing off on worker accommodation and service provision “to the point he felt he was insulting them”. One of them told him: “For god’s sake, stop asking.”

Halikos Group managing director Shane Dignan.

Mr Kildare reportedly assured Mr Dignan two letters Halikos had received — in February and July 2014 — were “as good as money in the bank” and Inpex would not leave the company “stranded”.

Barrister Dick Whitington QC, for Halikos, submitted a 130-page opening statement, running a case that Inpex engaged in deceptive and misleading conduct. He said Mr Giles would be called to give evidence during the trial.

Halikos sought a variation to an existing contract it had with Inpex in order to demolish the old Top End Hotel and build apartment accommodation — 105 Mitchell St — and provide related services for workers on the $50 billion Inpex project without a tender process. It was a proposed solution to workers expected to clog up tourist accommodation.

Halikos has alleged Inpex instructed it to go ahead with construction before backing out of the deal. Mr Whitington said Mr Kildare was quoted in a draft media release endorsing the 15-year deal with Halikos. He later reportedly stated in correspondence about the draft that it was made “easy for media to digest” so they didn’t “buggerise” it. He made reference to “mofos in Perth”.

Justice Judith Kelly asked what a mofo was. Mr Whitington advised it was “an indelicate term”. The court heard when Inpex got wind that Halikos was circulating a document stating there had been an agreement regarding accommodation, Mr Wheeldon said in an email to Mr Kildare: “How are we going to play this?” Mr Kildare replied: “Let’s not put anything in writing.” Justice Kelly said: “It’s going to boil down to who said what ... and how that feeds into a pattern from which conclusions can be drawn.”