Magnate sues Brough over Ashby denials

CLIVE Palmer is suing Liberal Nationals candidate Mal Brough for more than $800,000.

CLIVE Palmer is suing Liberal Nationals candidate Mal Brough for more than $800,000 over his denials that he lobbied the businessman to fund the sexual harassment case against Peter Slipper.

Mr Palmer yesterday filed a defamation lawsuit claiming the former Howard government minister had caused him distress and embarrassment and damaged his reputation by publicly refuting Mr Palmer's allegations last month that he had sought funding for Mr Slipper's former staffer, James Ashby, to launch a sexual harassment case against his then boss.

Last month, Mr Palmer, who is contesting the Sunshine Coast seat of Fairfax as leader of the Palmer United Party, backflipped on his denials last year that he had any knowledge of Mr Ashby's case before it was filed in the Federal Court against the then Speaker.

The mining magnate and prime ministerial aspirant told The Australian in July last year that he had been unaware Mr Ashby was preparing to file a lawsuit. But he told a press conference on August 22 this year that Mr Brough had, in fact, briefed him on Mr Ashby's allegations before asking him to fund the case in a bid to "destroy" Mr Slipper's career.

Mr Brough, who is running as a Liberal National Party candidate against Mr Slipper, now an independent, for his Sunshine Coast seat of Fisher, immediately denied having asked Mr Palmer for funds.

While conceding he had lunch with Mr Palmer, then a senior LNP identity and donor, Mr Brough accused the businessman of changing his story for political gain.

"This is an event which occurred 17 months ago and now two weeks before polling day Mr Palmer has decided his recollection has changed and his story has changed," Mr Brough said. "It is black and white that Mr Palmer has been inconsistent on this."

Mr Brough, who The Australian last year revealed had advised Mr Ashby and even arranged for him to meet lawyers before he filed his lawsuit, said he had never asked Mr Palmer to fund the case.

"It's just not true," he said.

In his statement of claim, Mr Palmer said Mr Brough's comments implied that he was a liar and lacked honesty and integrity.

Last year, Mr Palmer told The Australian he he had only been vaguely aware of Mr Ashby's allegations.

"All I had heard about was rumours, right, that these sorts of things had happened -- that's all I heard about," Mr Palmer said at the time.

Earlier this year Mr Palmer also issued defamation proceedings against the publisher of The Australian.

In December, Federal Court judge Steven Rares threw out Mr Ashby's case, accusing the former staffer of hatching a "political attack" with Mr Brough to "advance the interests of the LNP and Mr Brough".