Barnett trying to discredit me: Clive Palmer

Clive Palmer has accused Premier Colin Barnett of trying to discredit him after WA Police confirmed yesterday it was examining allegations the mining magnate-cum-MP had siphoned $12 million from his Chinese business partner to splurge on electioneering.

A civil trial due to start in Brisbane tomorrow will examine CITIC Limited's claim Mr Palmer had acted dishonestly when he withdrew money from a bank account in the run-up to last year's election.

CITIC had deposited money to cover the costs of operating a port at Cape Preston for the Chinese State-owned company's iron ore mine in the Pilbara on tenements owned by Mr Palmer's private company Mineralogy.

Court documents filed as part of CITIC's breach of trust civil claim show Mr Palmer withdrew more than $12 million, with half going to the party's coffers and more than $4 million to pay for advertising.

But in an escalation of an already bitter legal dispute, the Chinese company has provided WA Police with documents relating to the allegations that could lead to a criminal probe.

Deputy Commissioner Stephen Brown confirmed WA Police "had received materials on behalf of the CITIC Group and had commenced to assess those materials to determine whether there has been any criminal activity as part of our normal fraud investigation and assessment process".

Mr Palmer claimed yesterday it was "abundantly clear" no improper payments had been made.

He said the $12 million was for services as per contract and in accordance with commercial agreements in place since 2001.

"Any allegations in relation to improper use of a trust are totally wrong," Mr Palmer said. "These attempts to discredit me are politically motivated allegations, particularly from the likes of Campbell Newman in Queensland and Colin Barnett in WA."