TerraCom whistleblower Justin Williams alleges he was ‘misled’ about compensation in court

A blockbuster court case against Queensland miner TerraCom has taken a surprise turn, with a central figure in the case standing up in court alleging he has been ‘misled’ about his role.

Queensland's Blair Athol coal mine is at the centre of a court case.

An ex-employee of listed Queensland miner TerraCom who blew the whistle on the company’s alleged rigging of coal quality results says he was misled into believing he would get compensation from a court case brought by Australia’s corporate cop.

Justin Williams raised his hand in the Federal Court on Monday and told Justice Ian Jackman that an Australian Securities & Investments Commission solicitor said the regulator would be seeking damages on his behalf, but it appears that has not happened.

Mr Williams also claimed that ASIC’s barrister Michael Borsky, KC, indicated he would be called as a witness – also not the case – and law firm HWL Ebsworth “misled” him about the court process to “prevent me from accessing rights that would normally be my rights”.

Sources close to ASIC rejected allegations that HWL Ebsworth and Mr Borsky misled Mr Williams. They also denied ever telling him ASIC would seek compensation on his behalf.

TerraCom’s former chair Wal King. Picture: Britta Campion/The Australian

Justice Jackman told Mr Williams he would need to lodge a written application to request to join the case, which is set to wrap up this week, after it was first lodged in 2023.

Key executives and directors of the coal producer are facing trial over claims brought by ASIC they misled the market, which they emphatically reject.

TerraCom’s former chair and construction industry legend Wal King is set to be cross-examined in court this week.

Chief executive and managing director Daniel McCarthy, chief commercial officer Nathan Boom and ex-director Craig Ransley are also parties to the action. All are defending the case.

Mr Williams’s claims came after the coal production company declared in an ASX announcement in May that it had settled the civil matter with ASIC, and agreed to pay a fine of $7.5m and legal costs.

When ASIC first sued the owner of Queensland’s Blair Athol coal mine, deputy chair Sarah Court said it was a “significant case” because it is the first time ASIC has taken action for alleged breaches of whistleblower laws.

“ASIC alleges that TerraCom and its senior company employees engaged in conduct that harmed a whistleblower who revealed the alleged falsification of coal quality certificates. Whistleblowers perform a vital role in identifying and calling out corporate misconduct,” she said at the time.

ASIC deputy chair Sarah Court. Picture: Gaye Gerard/NewsWire

“We take any indication that companies are engaging in conduct that harms or deters whistleblowers very seriously.”

Mr Williams was the first to uncover and report allegations that an external testing laboratory, ALS, falsified coal quality results in shipping analysis reports to make them more favourable and pump up prices.

ASIC’s court documents allege Mr Williams disclosed his concerns to Mr McCarthy and then Mr Boom when he was employed between July and August 2019.

“Williams expressed concern that the certificates of analysis with the amended results were being issued to customers and used for the purposes of invoicing those customers,” the court documents said.

Mr Williams – who was general manager of commercial at TerraCom – also discussed the alleged issue with Mr Ransley, and “stated that current or former employees of TerraCom, including McCarthy and Boom, was involved in or had knowledge of the amendment of coal quality results”.

“On 13 August 2019, some five weeks after he commenced, Williams’ employment with TerraCom was terminated on the alleged ground of redundancy and on 14 August, 2019 Williams told Ransley that he would not return his laptop as he was planning on providing the laptop to the Australian Federal Police,” ASIC’s court documents claimed.

ASIC hired PwCoopers to investigate and it identified 12 out of 14 shipments sampled had “inconsistencies” in the coal’s quality.

Mr Williams separately launched Fair Work action against TerraCom, and disclosed his allegations to ASIC in February 2020.

The trial continues.

Originally published as TerraCom whistleblower Justin Williams alleges he was ‘misled’ about compensation in court