Clive Palmer treated Queensland Nickel as $200m

Piggy BankClive Palmer is accused of being a reckless, shadow company director who took$200 million out of a Queensland nickel company to fund his political party andinvestments, including a new Titanic.

Administrators of Queensland Nickel, which closed last month, said yesterday thecompany was used as a piggy bank to finance what they termed the Palmerempire.

More than $200 million was taken out of the company over a five-year period andpumped into companies that were directly related to Mr Palmer, including hisflagship business Mineralogy, FTI Consulting said in its report.

But John Park, from FTI, said his investigations found $189 million in loans tocompanies linked to Mr Palmer were forgiven or not paid back to QueenslandNickel, including $5.9 million that went into the plans for the Titanic II.

Of the money that went into the Titanic, most was spent on lavish launch partieswith the only assets now some intellectual property and a plastic boat.

The company also became the single biggest political donor in the country,delivering $21.5 million to the Palmer United Party.

The administrators said Queensland Nickel accounted for 27 per cent of thenations total political donations in 2014 and last year, including the WA Senateby-election when Palmer Uniteds Dio Wang was elected.

While money was flowing out of the nickel company into the Palmer CoolumResort and other firms, the world nickel price was falling.

Mr Park said the borrowing from the company could have continued if nickelprices remained high.

At a very high level, we saw Queensland Nickel as what Id say (was) the piggybank, the treasury, Mr Park said.

And the money was coming through Queensland Nickel in the better times and itwas being dissipated amongst the Palmer empire entities.

Up to 800 workers are owed $74 million in entitlements.

They are likely to get most of those entitlements paid out under a FederalGovernment program. Remaining creditors will likely get between nothing and 50for every dollar owed.

The administrators believe Mr Palmer and his nephew Clive Mensink, QueenslandNickels sole director, should be examined by the Australian Securities andInvestments Commission.

They claimed Mr Palmer acted as shadow director and that he and Mr Mensinkhad been reckless in exercising their duties and powers as directors for takingactions not in the interests of Queensland Nickel.

Mr Palmer is planning to fight any action and argued he was being singled outwhen Prime Minister Malcolm Turnbull was standing by as jobs disappeared in Queensland.

Despite me controlling a lot of things, being Dr Evil, if you like, I dont controlthe worlds international nickel price, he told Melbourne radio.

Mr Palmer said there was a witch-hunt against him for making decisions that hewas entitled to make.

I mean, that's my money. That's what we live in - a free society, and people havethe right to spend their money as they see fit, he told the Seven Network.

Mr Palmer is the sole shareholder of Queensland Nickel. His nephew Mr Mensink isthe sole company director. The Administrators believe that Mr Palmer should beexamined by ASIC for breach of s184 of the Corporations Act.

Do you think ASIC would be successful in charging Mr. Palmer for breach of s184of the Corporations Act?