Palmer under investigation by WA Police

Billionaire Clive Palmer says there is no truth to allegations he fraudulently siphoned $12 million in Chinese funds to bankroll his party into the 2013 federal election.

West Australian Police Deputy Commissioner Stephen Brown confirmed today that detectives were investigating allegations of fraud against Mr Palmer, but did not specify what they were.

Mr Brown said police were assessing materials received from Citic Pacific to determine whether there had been any criminal activity.

Mr Palmer told Fairfax radio there was no truth to the case and all money paid to his companies was for services they did.

"It was all declared on the public record and what they did with the money," he said.

A spokeswoman for WA Premier Colin Barnett, who has reportedly been informed about the case, declined to comment, saying it was a police matter.