Clive Palmer facing possible criminal probe led by ASIC

ASIC is in discussions about an “appropriate way forward” for a possible criminal case against Clive Palmer.

ASIC is in discussions with other agencies about a possible criminal case against Clive Palmer. Picture: AAP

The Australian Securities and Investments Commission is in “discussions” with other government agencies about the “appropriate way forward” for a potential criminal case against Clive Palmer.

Mr Palmer, who earlier this year failed in his bid to win a Senate seat at the federal election, is under investigation by the ASIC over the collapse of his Queensland Nickel company, which went into liquidation in 2016.

ASIC commissioner John Price told a parliamentary hearing on Friday that the regulator’s investigations were “at the point where we’re in discussions with various other government agencies about the appropriate way forward”.

Mr Price said the regulator had, as part of its probe into the collapse of the former nickel refinery, issued more than 180 statutory notices for information and had “conducted examinations with many people including Mr Palmer and his relatives, former employees of Queensland nickel and external advisers. Queensland Nickel went into liquidation owing its 800 workers more than $70 million.

Mr Price said ASIC hadn’t had the opportunity to communicate with Clive Mensink, Mr Palmer’s fugitive nephew who has been hiding out in Bulgaria, “in any meaningful sense”.

“We are looking at Queensland nickel and associated companies … including a company called Mineralogy,” Mr Price said.

According to court documents, other corporate creditors had to chase more than $141 million and it has been previously alleged that Mr Palmer was acting as a shadow director of the business and that he breached his obligations under the law.

Mr Palmer recently caved in to the demands of liquidators and agreed to pay $110 million to creditors of the collapsed refinery, after years of insisting he was not responsible.

The massive settlement meant the liquidators dropped civil claims that Mr Palmer acted as a shadow director and allowed the company to trade while insolvent.

ASIC’s current investigations are focused on the Coolum matter, Queensland Nickel and associated Palmer companies.

ASIC is probing allegations that Mr Palmer used the alias “Terry Smith” to run the company as a shadow director, that Queensland Nickel’s money was siphoned into the Palmer United Party, and various alleged breaches of directors’ duties.

Under the law, a shadow director is a person not formally registered or appointed as a director, but who acts as a director of a company and instructs senior officers. Shadow directors have the same duties and obligations as registered directors, and thus can face penalties of up to five years in jail for certain breaches of the law, including for acting dishonestly or in bad faith.