Former Chief Minister Adam Giles wanted to avoid Halikos, Inpex war, NT Supreme Court hears

FORMER chief minister Adam Giles warned Inpex officials the company could suffer ‘reputational damage’ in the NT if it did not resolve a dispute with the Halikos Group after backing out of an alleged 15-year accommodation deal

Former NT Chief Minister Adam Giles, right, leaves the Darwin Supreme Court on Wednesday

FORMER chief minister Adam Giles warned Inpex officials the company could suffer “reputational damage” in the Northern Territory if it did not resolve a dispute with the Halikos Group after backing out of an alleged 15-year accommodation deal.

Under cross examination in the NT Supreme Court, Adam Giles conceded his move to intervene in a private contractual dispute — as a senior politician — was unusual.

“I didn’t want to see the two biggest economic players in the NT at war,” he said.

“I thought (a public stoush) would be detrimental to the NT and the companies.”

Mr Giles said he could not recall if a letter he wrote to Inpex Australia director Seiya Ito in November 2014 was sent at Halikos Group’s request.

The letter stated: “I appreciate this matter revolves around a commercial transaction (but) I am concerned that failure to resolve it could negatively impact Inpex’s commercial reputation with NT businesses.”

He told the court: “I did not discern if the claim (against Inpex) was good, bad or indifferent.”

In the letter, Mr Giles also stated he would raise the matter with Mr Ito’s colleagues in Japan.

Inpex barrister Patricia Cahill SC asked: “Did you intend that to operate as a threat to him — settle quickly or you would report him up the line?” Mr Giles said: “Never.”

He denied he took pains to resolve the matter to benefit Halikos, but gave evidence he did raise concerns over the gas giant backing out of the deal when he met with Inpex worldwide boss Toshiaki Kitamura in Japan in early 2015.

Halikos Group managing director Shane Dignan, under cross-examination last week, said Inpex officials threatened to find another contractor unless subsidiary Halikos Hospitality got on with building worker accommodation 105 Mitchell St, on a promise the multi-million dollar deal — to reduce pressure as Inpex workers flooded tourist accommodation in Darwin — would be approved.

Mr Dignan said he believed it was a done deal in February, 2014. Inpex later reneged.

Halikos has accused the gas giant of misleading and deceptive conduct.

Ms Cahill put to Mr Giles that Inpex official Sean Kildare never told him there was an accommodation agreement.

Mr Giles said: “That’s not correct.”

He said a dinner at Hanuman on March 24, 2014, was “to celebrate a commitment by Inpex to secure additional accommodation.”

Mr Giles said he believed Inpex delayed approving a draft media statement about the deal because of “the wording” and denied he pushed for it to be released to secure the deal for Halikos.

He told the court he could not recall a soiree on April 10, 2014 — his birthday — at Mr Dignan’s penthouse but later confirmed he was there.

He denied he was invited to sweet-talk Inpex officials into sealing the deal with Halikos.

Ms Cahill said: “Your memory of that event is much poorer than your memory of (dinner at Hanuman)?” Mr Giles said: “Correct.”

Mr Giles said he now considered Mr Dignan and Mr Halikos friends but did not at the time the deal was being done with Inpex.

He also told the court he used to socially smoke cigars, have a drink and chat about motorbikes with Mr Kildare.