Alinta Energy yet to meet sale conditions set by FIRB three years after it was sold to Chinese company
Three years after it was sold to a Chinese company, the energy giant is yet to meet the conditions set by the Foreign Investment Review Board.
Energy giant Alinta Energy is yet to meet the stringent set of sale conditions set by the Foreign Investment Review Board three years after it was sold to Chinese company Chow Tai Fook, a Senate economics references committee has heard.
Pressed repeatedly by committee chair and Labor Senator Deborah O’Neill about whether the company had met FIRB’s requirements since its purchase in April 2017, Executive Director Daniel McClelland confirmed Alinta had not fully complied with the terms.
“Alinta has not completed and is operating in a fully compliant manner with all the conditions, however, how the conditions operate is that we are regarded as being compliant so long as its activity is proceeding in accordance with the timeline and processes that are set out in our approved plan,” Mr McClelland said.
“So to be clear, Mr McClelland, you have not completed all of the compliance with all of the conditions? You are in a process that is still not achieved as of the 15th of May, 2020?” Senator O’Neill said. “Is that correct?”
McLelland replied: “That's correct, Senator.”
Cheng family company Chow Tai Fook bought Alinta Energy in 2017 with the approval of then-treasurer Scott Morrison and the FIRB subject to strict requirements
It was heard that the energy company has until June 20 to comply with these terms.
Also questioned was Alinta chief executive Jeff Dimery who confirmed that powerful Hong Kong tycoon Henry Cheng, whose family runs Chow Tai Fook, was a standing committee member of the 12th Chinese People’s Political Consultative Conference of the People’s Republic of China.
Asked if he was aware Mr Cheng was on this committee, Mr Dimery said yes.
“And is it your understanding that the CPPC is an organisation of the united front of the Chinese People formed in 1954?,” Senator O’Neill asked.
“My understanding is that the consultative conferences as the name infers is a sounding board and a consultative body,” Mr Dimery said. “I'm aware that it has no legislative powers.”
“But it is a consultative body for the Chinese Communist Party. Is that correct?,” Senator O’Neill asked.
“I believe it is a consultative body to the Chinese government, yes,” Mr Dimery said.
The Senate economics references committee is examining the national interest test for foreign investment proposals, including whether Australia’s capabilities in key sectors should be specifically considered in the Foreign Investment Review Board national interest test.
Mr Dimery told the committee the company’s net profit after tax in 2019 was $196m. Their total revenue was $3.4 billion and earnings before interest or tax was $356 million.
Asked if Mr Cheng was required to obtain any Australian approvals or clearances by the government or Alinta’s shareholders in relation to his role as a director given his links to the Chinese government, Mr Dimery confirmed no clearance checks were required.
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