Clive Palmer ‘hazy’ on why he paid out $43m

Clive Palmer has struggled to explain why he funnelled $43m from QN’s bank ­accounts, a court has heard.

Embattled businessman Clive Palmer exits the Brisbane Federal Court after being questioned over his failed nickel company. Picture: Jack Tran

Clive Palmer has struggled to ­explain why he funnelled $43 million in a single day from Queensland Nickel’s bank ­accounts to himself, his Bulgarian father-in-law, two foreign women and companies in his empire.

The mining magnate was cross-examined in Brisbane’s Federal Court about the collapse of Queensland Nickel, which fell into liquidation last year under $300m in debts and left nearly 800 workers jobless.

Mr Palmer — who last week boasted in a court affidavit he had more than 40 years’ business ­experience and was a “national living treasure” — ordered nine payments from QN in late 2012, months before he was elected to federal parliament.

Documents show Mr Palmer told Queensland Nickel chief fin­ancial officer Daren Wolfe to send $1m to Bednova Evgenia, for “representation fees”. Yesterday, he told barrister Walter Sofronoff QC, for liquidators FTI Consulting, that Ms Evgenia lived in Kurdistan, had experience in trade-related matters and acted as a representative to the foreign ­government.

Mr Sofronoff: “This woman who received $1m, was (she) doing work for the benefit of the companies in your group, or a ­single company in your group?”

Mr Palmer: “I personally don’t recall … I don’t remember the ­detail of what one person did when I’m employing 1000 people every day.”

Mr Sofronoff: “Your evidence is you have no recollection what this person might have done to justify this sum of money?”

Mr Palmer: “That’s right.”

The founder of the now-­dormant Palmer United Party also agreed he directed that $4.5m be paid on that day to Zhenghong Zang, who he said was a Chinese woman involved in his companies since 1996.

Mr Palmer said $500,000 was paid to set up an office in Shanghai — which he later decided not to do — and $4m was for “operations in China”.

“It wasn’t money for her personal use … it was a corporate use,” he said. Mr Palmer conceded that while he didn’t have “full knowledge” of her duties, he had “knowledge of the person’s integrity”.

On the same day, he ordered $15m to go to his ex-Club Med ­resort in French Polynesia, which he decommissioned to use as a “private retreat”.

Mr Palmer ­ordered $US8m be paid to Alexandar Sokolov, his Bulgarian ­father-in-law. “I would have given that to him in exchange for natural love,” Mr Palmer said.

When asked why he directed $US15m be taken from Queensland Nickel and deposited in his personal Hong Kong bank ­account, Mr Palmer said it “could have been for parties”.

“I don’t know. I own the companies 100 per cent … I’m sure it was for a legitimate purpose.”

Mr Sofronoff: “I think most of us would remember a payment of $15m four years ago, Mr Palmer?”

Mr Palmer: “It was a smaller amount of money than I was used to dealing with at the time … I can’t remember payments of $15m.”

The cross-examination was at times heated, with Mr Sofronoff asking Federal Court registrar Murray Belcher to instruct Mr Palmer to properly answer questions just three minutes into the hearing.

Outside court, Mr Palmer was cheerful. “It was all positive, it was a pleasurable experience,” he said.

He will continue his evidence today, before his wife, Anna Alexandrova Palmer, is expected to be called to testify.