Palmer: missing Chinese money 'like a salary'

Clive Palmer has back-flipped on his denial he spent Chinese Government funds meant for a mining port operation by suggesting the money was "like a salary" for him to use on his political campaign.

Allegations have surrounded the billionaire parliamentarian for weeks that $12.167 million belonging to the Chinese state-owned mining company Citic Pacific had been siphoned off to the Palmer United Party's political campaign.

The money — which was to be used to manage a port in WA's Pilbara region — was drained from a bank account belonging to the Palmer-owned mining company Mineralogy before two cheques worth $10 million and $2.167 million were cut.

While Mr Palmer acknowledged he owned Mineralogy he claimed he could not recall who signed the cheques which became the subject of a police investigation last week.

Yesterday Mr Palmer said the allegations around the missing money had been "made up by (Queensland Premier) Campbell Newman".

But four hours later at a National Press Club address, Mr Palmer acknowledged the $2.167 million cheque was paid to the Brisbane firm Media Circus to handle PUP's political campaign.

"If it went to Media Circus it would have been to pay for advertising, but Mineralogy has got the right to do that," Mr Palmer said.

"They were no longer Chinese funds. That's all I can tell you," he said.

Mr Palmer maintained the money no longer belonged to the Chinese mining group and suggested the money was like an employer had paid an employee.

"You get your salary. It's not (your employer's) money after you've got it because you've provided a service for it," he said.

Citic Pacific did not comment on the matter because it still under confidential arbitration.

Sources: The Courier-Mail, The Australian
Author: Nicholas McCallum, Approving editor: Nick Pearson