CITIC Pacific has accused Australian businessman Clive Palmer of “fraud” and “dishonesty” in a claim lodged in Queensland’s Supreme Court yesterday, according to media reports.
In a statement of claim reportedly lodged by CITIC, the Chinese government-owned business is alleging that Palmer inappropriately used $12m in funding from a shared bank account.
$10m in funds, according to reports, were allegedly sent by Palmer to his business Cosmo Developments in early August last year.
A further $2.167 was allegedly moved by Palmer to Sydney ad agency Media Circus, to fund political campaign ads for the Palmer United Party during last year’s federal election.
CITIC claims it was given no justification by Palmer, or his company Mineralogy, for the expenditure, and says Palmer was bound to use the funding only in relation to costs of running a port at Cape Preston in WA.
According to The Australian, the claim alleges that Mineralogy “was not in possession of the port, had not budgeted to provide $10m worth of services to the port … and had no plan to incur any such expenditure.”
As for the other $2.167m – allegedly sent to Media Circus – CITIC reportedly claims Mineralogy didn’t have the need “to incur expenses in relation to the port or for port management services at the port in the sum of $2.167m”.
Palmer has repeatedly denied allegations of fraud in relation to the funding in recent months. He has said that the funding was his to spend, but has also said that he could not recall signing the cheques which CITIC claims he signed.
But CITIC’s document reportedly claims that Palmer was engaged in “dishonest and fraudulent” activities.
“Palmer knew that the payment were not made for port management services because he signed the cheques in favour of two companies that were not involved in the provision of port management services,” the document reportedly alleges.
“He knew that Mineralogy was not in possession of the port in the second half of 2013. He knew that port management services to the value of $12.168, were not required to be provided by Mineralogy in August or September 2013.”
Source from here