Palmer’s alter ego called shots

Palmer’s alter ego called shots

Clive Palmer used the alias Terry Smith to run the troubled Queensland Nickel refinery, despite repeatedly claiming since he was elected to parliament in 2013 that he was at “arm’s length” from the company’s day-to-day operations.

Mr Palmer kept such a tight rein on the running of the Townsville plant between 2013 and last year that he was required to sign off on all purchases above $500, using his “Terry Smith” Yahoo email address, documents show.

On some occasions, Mr Palmer approved expenditure when he was not formally ­registered as a director of the company.

That fact adds weight to the possibility Mr Palmer acted as a “shadow director”, potentially exposing the Palmer United Party leader to personal liability over any QNI debts — if it is deemed to have traded while insolvent — and potential legal breaches by the company.

A corporate lawyer told The Australian a case could be made that Mr Palmer acted as a shadow director, given his role ­approving procurement at the refinery, his representations to the state government on QNI’s behalf, and his calling in of voluntary administrators.

The experienced solicitor said it was not unlawful to use an alias in the running of a business but “it is irregular; it’s really weird”.

QNI sank into voluntary ­administration last week, just three days after 237 workers were sacked from the Yabulu ­operation.

The Australian understands administrator FTI Consulting has been told by staff to look into “Terry Smith”.

Mr Palmer bought the refinery from BHP in 2009 and has been its sole shareholder — through a network of companies — since. However, since his election as the representative for the Sunshine Coast seat of Fairfax, he has regularly stated he was a politician, not a businessman.

As recently as Friday, Mr Palmer told the Sunshine Coast Daily he kept himself separate from the running of QNI, despite being the company’s owner.

“I must be completely at arm’s length,” Mr Palmer said. “I’ve been to Townsville twice in the past three years. Three years ago, I launched our election campaign, and last year I ­addressed the workforce as the owner. You can’t have the balance of power and represent Fairfax and still be actively responsible in a company.”

However documents obtained by The Australian paint a different picture about the inner workings of Queensland Nickel.

On January 21 last year, Mr Palmer’s nephew Martin Brewster, QNI’s procurement director, emailed the Terry Smith email ­address requesting approval to buy a $41,620 conveyor belt.

Mr Palmer replied in the early hours of the following day, also using the Terry Smith email ­address.

“Ok please change ur procedure I require confirmation on all purchase requests and PDF proof that First three quotes were obtained (sic) … this procedure to start 9 February. Clive Palmer.”

In August 2014, Mr Brewster wrote to Mr Palmer’s Terry Smith email address, requesting ­approval for the purchase of “bulk liquid argon gas”.

A one-word answer came back from the Terry Smith address. “OK.”

Mr Palmer was not a director of QNI in August 2014, but began a weeks-long stint as a ­director on January 22 last year.

Two weeks after Mr Palmer was elected to parliament, he ­approved the overhaul of four “pressure safety valves” at a cost of $552 each.

“The overhaul of these valves occurs once every four years and we are 2 years overdue,” Mr Brewster wrote to the Terry Smith email address, requesting the ­approval.

In an unrelated Queensland Supreme Court civil case last year, Mr Palmer admitted under cross-examination that he had used the name Terry Smith, including to send emails.

One refinery worker recently made redundant told The Aus­tralian: “It was general knowledge that Clive Palmer through his alias was required to sign off on most purchases that exceeded $500.

“It is pretty strange. On one hand, he’s saying he’s not a director, and not part of the company, and on the other hand holding a very tight grip over everything.”

A current employee said: “We knew that every time we had to get a PAF (purchase approval form) signed, it had to go over Clive’s desk.”

Several other people who had worked at the refinery told The Australian that there was initial confusion about the identity of the “Terry Smith” who had to sign off on procurement, given no one by that name worked at the plant. However, they said it was soon common knowledge Terry Smith was Clive Palmer.

When The Australian asked Mr Palmer to explain his alias, his role in signing off on expenditure, and the apparent conflict with his public statements about his lack of involvement in the running of QNI, he responded by text message.

“Australian great for fish and chips hopeless for news get one free at any airport no comment on Rupert mass sacking no profit in Australia just 50 years of losses (sic).”

Mr Palmer’s media representative said: “He won’t talk to The Australian sorry”.

Bill Shorten yesterday wrote to Malcolm Turnbull to ask for federal government assistance over the QNI job losses, including funding for the Townsville Stadium project and the fast-tracking of funding for an upgrade of the Bruce Highway.

Additional reporting: Jared Owens

The Australian