Palmer's campaign cash trail
Clive Palmer used at least $2.1 million in funds allegedly siphoned from China's CITIC Pacific to pay his advertising agency during last year's Federal election campaign, according to documents filed in the Queens-land Supreme Court yesterday.
CITIC is seeking invoices and contracts from the agency used to book Palmer United Party election advertisements last year, saying a $2.1 million cheque cashed by Brisbane-based Media Circus Network ahead of the September 7 election came from an account set up solely to cover the administrative expenses of flagship Palmer resources company Mineralogy at the Cape Preston port in the Pilbara.
The subpoenas were filed in CITIC's hunt for $12.1 million it alleges Mineralogy wrongfully siphoned from money it paid into the administrative fund.
Affidavits filed in a Federal Court case in May show CITIC had been seeking details of withdrawals from the bank account in August and September, the first for $10 million and the second for $2.1 million. Mineralogy described the payments as being for "port management services" but CITIC says Mr Palmer's company failed to provide details of to whom the money was paid or for what purpose.
Lawyers for CITIC told the Federal Court the money was "levied on an improper basis and spent on an improper basis".
Yesterday's court filings say $10 million was paid to Mineralogy subsidiary Cosmo Dev-elopments, where Mr Palmer was a director until late May, and $2.1 million was paid to Media Circus Network.
The CITIC subpoenas seek details of invoices associated with the payments, details of work done for Mr Palmer's companies, and any contracts either may have had with Mineralogy or other Palmer-owned companies.
They were issued to Media Circus Network, Cosmo Dev-elopments and Mr Palmer.
Other subpoenas were issued to engineering and service companies named as consultants to Mineralogy.
PUP senators, who will hold a share of the balance of power, begin their term today but will not be sworn in until Monday.
The West Australian asked Mr Palmer and his spokesman to explain what services Cosmo and Media Circus Network performed in return for the payments.
Mr Palmer said "no money is missing" and the only money missing was the money owed by CITIC in a separate dispute over royalties payable for iron ore shipped from the project.
Seeking comment, The West Australian was told Media Circus Network's managing directors were overseas.
