A former managing director of Queensland Nickel invoiced the company for other work he carried out for his friend Clive Palmer, the Federal Court has been told.
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Lawyer Catherine Muir, representing the special-purpose liquidators, asked why Mr Ferguson, who had been a director or secretary of 63 companies, had not checked who was party to the agreement.
The summons was requested by special liquidators trying to claw back tens of millions of dollars the federal government shelled out for Queensland Nickel workers’ entitlements. “My understanding was that Clive owned 100 per cent of the businesses”.
The former federal MP has always denied acting as a shadow director of the company, which left nearly 800 Townsville refinery workers without jobs when it failed earlier this year.
Insolvent trading opens up the possibility of civil or criminal penalties against a company director.
The refinery assets are held by two other Palmer-owned parent companies of QN.
The court heard Mr Ferguson received a $500,000 advance from Queensland Nickel’s bank account in 2014.
The hearing was also told Mr Ferguson invoiced Queensland Nickel $3,850 a month, through his company Primeland, to look into property developments for the Palmer group.
This included his plan to cash in on the 2018 Commonwealth games by building 7,500 apartments on a 250-acre former Japanese wedding reception venue on the Gold Coast.
Mr Ferguson said he was unaware if Queensland Nickel was invoiced and if it was paid.
“I have reported to Clive Palmer if and when required”, Mr Ferguson said. Tim Sullivan, QC, for special objective liquidators PPB Advisory, posed.
He said Mr Palmer was involved in approving low-level expenditure, new contracts, and in decisions not to pay the company’s creditors as the company ran out of cash.
“I thought I was working for Queensland Nickel but I realised at a later date there was a joint venture agreement”.
He began as the commercial director and went on to become the managing director of operations.
However, he said he could not recall any occasion previous year when Mr Mensink refused to go along with Mr Palmer’s decisions.
Ferguson currently works as general manager for Queensland Nickel Sales, which replaced QN as the manager of the now mothballed-refinery.
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The court hearing continues, with Mr Palmer expected to give evidence later this week.
