Poor Clive Palmer could have assets frozen: Country cheers 14

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Rebecca

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Reports are in this morning that Clive Palmer’s assets could be ­frozen by liquidators of Queensland Nickel which was placed in administration this week while they determine if he breached his director’s duties as alleged.   It is something that has his former employees cheering and we want to know what you think. Not many in Australia appear to have much sympathy for the politician.

Hundreds of Mr Palmer’s former employees and suppliers cheered as they voted unanimously to wind up QN at a packed creditors’ meeting in Townsville, three months after the first of nearly 800 workers was sacked from the north Queensland refinery according to the Australian.

“It’s now time to start to chase the money,” said liquidator John Park, to the meeting.

The Federal Member, renowned for his mining-earned wealth has been hit with a long series of blows over the last 12 months, and this looks to be the start of another period of public attack.  Queensland Nickel owes approximately $300M at the time of liquidation, and as the owner and allegedly, a shadow director, Mr Palmer is being accused of being behind the losses.

Public opinion is a terribly jury in cases like this where so many people are affected, and Palmer’s strongly disruptive political stance makes him an even better target for the media and everyday people.

The Australian reports that his nephew Clive Mensink, is the sole official director of Queensland Nickel, and that both he and Mr Palmer are alleged to have “recklessly” breached their directors’ duties by siphoning $224m from QN’s coffers to Palmer-­related companies before QN crashed, and then loans of $189M were forgiven.

The tax office is apparently investigating, and had their own representative at the creditors meeting.

There is some hope  that Mr Palmer and Mr Mensink may be personally liable for any debts incurred by QN after it became insolvent.  The liquidators believe this could have been as early at 27 November last year.

Steps are already in place to recover the monies from Palmer’s other companies, the recipients of the payments.  Call notices have been served demanding payment of $190m from QNI Metals and QNI Resources, the parent companies of Queensland Nickel.  If the court upholds the demands, the company’s assets could be sold, at a value according to media reports that could be up to $1.9B.  The assets include a central Queensland cattle station.

The challenge is that to liquidate the refinery assets will leave the company operations mothballed forever.  Instead one worker requested that someone work out how they can “sell a few mansions” of Palmer’s and Mensink’s.

The ripple effects for Palmer could be significant, with consideration being made for cash being paid into Mineralogy and his other business, Coolum Palmer Resort, a once-thriving Hyatt resort that hosted the PGA, with the resort now closed, the event held elsewhere causing other community disputes in his electorate.

Apparently, liquidators could apply to freeze Palmer’s personal assets.  “It’s something we’ll be looking at. We’ve got to determine what’s the sweetest route (to recoup the debts).”

Meanwhile, taxpayers will foot the bill for the entitlements owed to Queensland Nickel workers of $68M and $74M.

Palmer continues to call out politicians for using their power to attack him. His Facebook and Twitter tirades suggest he is convinced that this is all caused by a political vendetta. Some media outlets support the politician.

Rebecca

Rebecca Wilson

Rebecca Wilson is the founder and publisher of Starts at Sixty. The daughter of two baby boomers, she has built the online community for over 60s by listening carefully to the issues and seeking out answers, insights and information for over 60s throughout Australia. Rebecca is an experienced marketer, a trained journalist and has a degree in politics. A mother of 3, she passionately facilitates and leads our over 60s community, bringing the community opinions, needs and interests to the fore and making Starts at Sixty a fun place to be.

  1. I believe Clive Palmer should be held responsible.

  2. The man is totally responsible for this. He is a disgrace, and should be put in prison for what he has done.

    1 REPLY
    • Palmer didn’t get through being honest,be assured!

  3. It just shows how ruthless the two-party system can be. Clive Palmer was taking a different approach to Australian politics, and look what they are doing to him. Is this freedom? How could someone with less financial backup probe the system? We can see that the current one does not work, but you can’t get in there, to make a difference. I honestly believe Clive would have shaken up the dirty politics.

  4. George I agree, I knew there was more to Qld Nickel. We kept hearing all the negatives towards Clive Palmer. They did the same to Pauline Hanson some 12 years ago. I remember that well. They are sneaky, dirty, liars and everything else which I cannot say.
    Good on you Clive Palmer. Keep it up and screw Liberals and Labour for their dirty tactics/

    1 REPLY
    • I agree. Clive Palmer is smarter and more intelligent than 80% of the other politicians. He didn’t get to be rich by being stupid. If all this mud-slinging had any substance he would be before the courts now. There is a lot of comment being made on here by a lot of ignorant people who have no understanding of corporate affairs at all.

      This is a political witch-hunt. Nothing more and nothing less.

      I support Clive Palmer because he has done more for this country than any one of the current politicians in either of the two major parties or the Greens. I don’t always agree with what he says or his policies, but he is definitely what this country needs.

  5. This arrogant idiot should have all his possessions sold to repay all of his debts. A typical politician who thinks he can do anything and get away with it. There are very few good politicians.

  6. Clive Palmer should have all his assets seized to pay all debts particularly the money owed to all the workers. Shame on him!

  7. For all the talk from the Administrators, they have said they will not have done anything within 8-11 weeks. Very convenient to be able to continue to bag and blame Clive for the full election campaign period…then what? Nobody cares because this has only ever been about getting rid of Clive from politics.

    Beyond the payout of the redundancies to those who worked directly for QN the other job losses will get no support from govt (employees at the port and suppliers to QN). But if we only look at 800 people who were employed directly and now aren’t…the loss to the govt bottom line is about $80 million every year*. That is a lot of money from the bottom line compared to the government just going guarantor for a $30m loan.

    The only person who wanted to keep QN going was (and is) Clive. The unions did not fight to keep it open. The Qld Govt would not help (even though they discount the cost of power to the Gladstone refinery – a multinational – to the tune of about $40m every year), the Federal Govt wouldn’t help. No one benefits from the closure, not the workers, not the workers at the port or suppliers, certainly not Townsville.

    This has been nothing more than a witch hunt with media using half truths and innuendo to bring Clive down. Do yourself a favour read the statement from Clive.

    * Employees of QN paid a combined $50m every year income tax, QN paid (on average) $20m Company tax. If these workers do not find jobs the cost of Newstart (excluding additional FTB/concessions) will be $10.4m……….making a total of $80.4m every year.

    1 REPLY
    • Spot on Catriona. It is good to see that someone else understands big business and can see the forest through the trees !! Nothing more than a nasty political witch-hunt.

  8. I wish people wouldn’t comment on something they obviously don’t know anything about. Unless you have a good understanding of corporate law then you probably have no understanding of the Clive Palmer situation.

    Nothing like getting on the political bandwagon and showing ignorance.

  9. I live in the Faifax area that this fool was voted in, no I did not vote for him. I have seen what happens when he buys something example a beautiful Coolum resort ruined. He came to an Australia Day Ceremony once was so rude, he has done nothing for this region. I hope his assets are frozen as all he says is it wasn’t me

  10. Oh, how the mighty will possibly fall!

    This male isn’t a politician’s boot-strap!
    He’s tried to be too smart by far, & has been caught in his own trap!
    Good riddance to him!

    Hope ALL he owns……planes, cars, golf buggies, expensive paintings, property, artful glassware, & other pieces of art, housing, ship, are all SOLD to repay his workers’ entitlements.

    He’s just a disgraceful person, who’s looked after himself ONLY totally!
    He couldn’t give a literal ‘brass razoo’ about the people who toiled for his riches. And his nephew’s not much better.

  11. Oh, how the mighty will possibly fall!

    This male isn’t a politician’s boot-strap!
    He’s tried to be too smart by far, & has been caught in his own trap!
    Good riddance to him!

    Hope ALL he owns……planes, cars, golf buggies, expensive paintings, property, artful glassware, & other pieces of art, housing, ship, are all SOLD to repay his workers’ entitlements.

    He’s just a disgraceful person, who’s looked after himself ONLY totally!
    He couldn’t give a literal ‘brass razoo’ about the people who toiled for his riches. And his nephew’s not much better.

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