Alleged Clive Palmer fraud ‘to hit $23m’ over Chinese funds

THE scale of the fraud alleged against Clive Palmer is tipped to almost double to about $23m.

Clive Palmer at Parliament House in Canberra.

THE scale of the fraud alleged against Clive Palmer is tipped to almost double to about $23 million, the total amount of Chinese cash ­allegedly siphoned by Mr Palmer and his companies from a bank account set up to fund operations of a port for iron ore ­exports.

A police investigation into an alleged fraud by Mr Palmer over more than $12m of the Chinese funds is also expected to examine claims he fabricated documents to conceal the conduct. The ­establishment of the probe in Western Australia was revealed in The Australian yesterday.

But records show Mr Palmer’s company, Mineralogy, billed the Chinese government-owned companies for about $23m in three years, the money sent by Beijing and spent by Mr Palmer.

Little if any of the money ­appears to have been spent on port management services, as claimed by Mr Palmer’s company, which has not been in control or possession of the port at Cape Preston in remote WA.

The police probe was confirmed at a WA Police Union conference in Perth. WA Police Deputy Commissioner Stephen Brown told journalists the investigation was under way. “I can confirm that we have received materials on behalf of the Citic group and we have commenced to assess those materials to determine whether there has been any criminal activities ... ,” he said.

Queensland Police Commissioner Ian Stewart told The Australian that officers in Brisbane had been involved at a preliminary stage.

The sums of money involved and the high profile of Mr Palmer, who has repeatedly denied wrongdoing, mean the case easily meets the threshold for investigation by fraud detectives in Queensland. However, it could also be taken up by the state’s anti-crime agency, the Crime and Corruption Commission.

WA Premier Colin Barnett, who this year said “the Chinese hate Clive Parlmer”, and Queensland Premier Campbell Newman — accused of corruption by the resources tycoon — declined to comment.

Offences of fraud and stealing are suspected by the Chinese government to have occurred in WA, where a National Australia Bank account — “Port Palmer Operations” — was based when Mr Palmer made withdrawals of $10m and $2.167m.

However, it may also have been an offence to have allegedly fabricated a document titled “Port Management Services Agreement’’, described by the China-owned companies as a “sham transaction”. Mr Palmer has admitted he falsely backdated by 11 months the document, which he presented as legal justification for taking the cash, more than $10m of which went to his Palmer United Party.

Mr Palmer ridiculed The Australian’s report about the police fraud investigation. The federal member for Fairfax tweeted a message telling Rupert Murdoch, executive chairman of News Corp (publisher of The Australian), that “it’s time to get on Skype and tell (The Australian’s editor-in-chief) Chris Mitchell (and) Hedley Thomas what fairytales to put in” the newspaper.

A civil “breach of trust” trial over the $12m-plus that he allegedly fraudulently siphoned is due to start in the Supreme Court in Brisbane tomorrow.

Additional reporting: Sonia Kohlbacher