8/14/2019 An inquiry into the performance of the Australian Securities and Investments Commission (ASIC). no 210 - Hon Bo

1/3

PARLIAMENT OF AUSTRALIAHOUSE OF REPRESENTATIVES

HON BOB K TTER MPederal Member for Kennedy

25 October 2013Attention : Chair Senate EnquirySenate Enquiry - The Performance of the Australian Securities and Investments CommissionEmail: economics.sen@aph.gov.auDear Chair,We understand the proper tribunal for the issuas involved il'l the Kagara and South Johnstone Milicase are of serious and penetrating nature that requires significant consideration.

South Johnstone MilThe prima facie facts that are not in question are that the South Johnstone Sugar Miil was allegedlysold at an undervalued asset price. We understand that the then receivers did not take intoconsideration the disposable and realisable non-essentia assets.We request that the Enquiry also consider the people that made th is decision and what was thebenefit that accrued to them , which should be accounted fo r and investigated.We also understand that a group of South Johnstone cane growers took legal action claiming hemill receivers and NAB fai led to take all reasonable care to ensure the mill was sold at market value.The matter was heard in the Federal Court in 2007. The civii action iesulted in an out of courtsettlement.Kagarain the case of Kagara, we understand that where a minority shareholder ends up with the sum of thecore assets stripped of the debt, then in such cases red flags would be raised. Wh iist they may notnecessarily be a 'mens rea', by the same token prima facie it would require an i:westigat ion. in thisparticular case ASIC were able to establish and aliegedly resolve sign ificantiy complex issues withintwo days.We understand that there is allegedly connections between ASIC, personnel and corporationsinvolved that present serious concerns. In this case we understand there is 120M owning tohardworking contractors and employees and various other parties nvolved, from north Queenslandtowns like Atherton and Ravenshoe. We beiieve this case requ ires serious consideration andattention, which has not been remotely received by ASIC.

PO Box 1638 lnnimil QLD 486 Ph: 07 llJ66 Fu: 07 6566PO Box 2l30 Moun t Isa QLD 4825 Ph:07 4743 3534 Fu: 07 4743 0189Pullament House Canberra ACT 2.600 Ph:02 6'lT 4978 Fax: 02 6 IT7 8558/3

- J R E P R E S E N T i N G , . . . / .- . ; ~ -:,_ ( _ , ~ . :_ ' { . ~ : : i T - ' G S T O N E ROSENEATH RUPERTSWOOD SELLHEIM SILKWOOD SILKY OAK SOUTH JOHNSTONE SOUTH MISSION 8EACH SOUTH EDGE STAMFORD STUART SWAr\S LAGOON SWEERS ISLAND TARZALI TAYLORS' . . _ .IBEACH. TlNAROO . TO LG A . TOOSANNA. T0 0. MU.LLA .TOONPAN. TO~ A Z TO.RRENS.CH.EK . TREBO NNETUllY. TULLY .H[ADS. TUMOU.LIN UPP.ERB.ARRON. u PfR HA UGHTON. uPPER .STC.NE. u.ASOANGI VICTORIA . ' ; . ~ "' . - , E S T A ~ [ ,WALKAMIN WANGl\N WA1lONVIL,L[ WAUGH.SPOCKET \Wlt-:TON WONDEClA: WOJ-JGABEL WO)'./GALJNG .BEACH "W,OODSTOC_K > ; ( ) ( ) P E C R ~ ~ K ' ~ ~ H T S cmK Y A R ~ YUNS: .. U R ~ ... ,)'URUGA . . - . .

; ~ { J ~ ~ - ~ ; ~ : ~ ; ; i ' . ~ ~ ~ . ~ ~ ~ { ~ ~ . ~ ~ ~ ~ ~ i : : , f w l j i ~ ~ < . ~ S ~ ~ ~ : : ~ ~ \ i : . C : . t ~ ; ~ ~ - ; ~ : : ~ ; i i ~ : ~ ~ ~ ~ - ' - ? ; ; ~ ~ : \ ~ ~ ~ ~ - ~ ~ ~ , ~ : ~ : ~ , _ ~ - ~ ~ ; ~ . i . ~ r ~ : \ ? : ~ ~ ~ ~ ~ . ~ : ~ : - ~ ~ - : : _:. :. ; ~ j ; ~ ~ ~ . : , . _ ~ : ~ - . : : . ~ ~

8/14/2019 An inquiry into the performance of the Australian Securities and Investments Commission (ASIC). no 210 - Hon Bo

2/3

HON O KATTER MPPARLIAMENT OF AUSTRALIAHOUSE OF REPRESENTATIVES Federal Member for Kennedy

-2-By way of background, we have attached overieaf inform ation on each of the two cases andkey actions taken to resolve these two issues.We would be happy to appear before the Senate Committee, as wcu ld some of ourconstituents that have been impacted by the issues.We would also like to invite the Senate Committee to visit the Kennedy Eectorate to hearfirst-hand from community members that have been severe y impacted by the sale of SouthJohnstone Mill or the Kagara receivership process. Our office would be happy to assist withany necessary arrangements.

Yours Sincerely,

Bob Katter MPFederal Member for Kennedy

PO Box 1638 lnni.sfail QLD 4860 Ph: 07 4061 60(,/, fn 07 4061 6566PO Box 2l30 Mount QLD 4825 Ph: 07 4743 3534 Fn: 07 4743 Ol89Parliament House Canberra ACT 7.600 Ph:02 6 ll7 4978 Fax: 02 6 ll7 85583

REPREs ENTING ; .. ~ . , - _ . ~ ' < ' . ~ : : ~ , ' ;':;> \;> : ~ , - : ~ - ~ " ; ' 1 : ~ : : . . : : - v _ ;:: --::.F; ., ., .. : _ ; : , ~. ABlRGOWRIE. ALICE RIVER . ALIGATOR CREEK ALMADEN. ALOOMBA ATHERTON BABINDA 8Alfl5 CREU< BALGAL BEACH 8AM8AR00 8ARRINGHA BARTLE FRERE BEDARRA ISLAND BELLENOEN KER BEMRSIDE ' 'BENTINCK ISLAND. BIBOOHRA . SILVANA. BINGIL BAY . BIRKALLA BLACKROCK BLUEWATER BOHlE PLAINS 800GAN SOULIA 8RAEMEAOO\\'S BRAMSTON BEACH 8ROOKHILL BURKETOWN BUTCHERS CREEK ._. . 'CALCIUM . CAMOOWEAL. CARDWEll CARMOO CARRINGTON CHARTERS TOWERS CHEWKO CHILLAG0 CLARE CLONCURRY CLUMP POINT COCONUTS COOlBiE COOPUMBA COQUETTE POINT CORDHIA JCORflElD . COWLEY. CROYllON. CRYSTAL CREEK, DAJARRA. DALBEC. DARAOGEE DEEllAL DIMBULAH DJARAWONG DOOMAOGEE DUCHESS DUNK ISi.AND EAST BARRON EAST PALMERSTON EAST PUSSELL EAST . ,,..,.

l ~ ~ i : J r ~ E ~ Z ~ [ ~ . ~ : : . ~ ~ E B ~ ~ E ~ : ~ ~ R 1 ~ ~ ~ L . ~ ~ ~ c i # i ~ ~ ~ ; l i : : l ~ v ~ ~ ~ l : ~ u G ~ i c i ~ . ~ 6 i T ~ ~ R b ~ ~ c b ' b ~ ~ Y F ~ D J ~ ~ ? i ~ : . ' ~ 1 1 l t ~ ~ - f g ~ E ~ ~ 1 I L I g m ~ ~ < ; U E J ~ ~ ~ ~ ~ t ~ ~ L O W . . ; :GUNPOWDER . GUNUNA HALIFAX. HAWKINS CRLEK HELENS Hill . HERBERTON HERVEY RANGE HOMESTEAD HUGHENOEN HUU HEADS l >GHAM INNISFAIL INNOT HOT SPRINGS IRVINEIANK )AGCAN . : - . ' .; - JAPOONVAL . )ARRA CREEK JULAGO . JULATTEN JULIA CREEK . KABAN KAIRI KA)AIBI KALUNGA KARUMBA KENNEDY KOAH KURRIMl1'E BEACH KY1'UNA LAKE BARRINE LAKE EACHAM LAN1' ERCOST - ' . , c ~. T t l ~ r n ~ ~ ~ ~ ~ L } R i ~ ~ ~ = ~ ~ ~ ~ ~ ~ ~ l L ~ ~ y ~ l ~ ~ ~ 1 ~ ~ ~ . - ~ ~ c i ~ ~ E ~ ~ ~ : ~ ~ ~ ~ 8 v 1 : A ~ ~ ~ ~ ~ ~ r o 7 t 1 l ? ~ ~ R . E ~ ~ ~ ~ L t A N : a ~ N ~ ~ ~ ~ ~ ~ ; f ' 6 ~ R E ~ ~ u N 1 A l : i i E ~ w ~ ~ ~ ~ ~ ~ ~ E ~ ~ o ' 0 ~ E ~ ~ ~ ~ L ~ ~ ~ ; ; 1 i ~ " y 1 ; : ~ ' ~MOUNT STUART MOUNT SURPRISE . MOURILYAN. MULGRAVE MUNOOO MURRAY UPPPER MURRIGAL MUTARNEE MUTCHILBA MUTTABURRA NUIA NOME NONDA NORMANTON OAKVALLEY CORINO# ,_PACKERS CAMP. PADOYS GREEN. PALUMA. PEACOCK SIDING . PEERAMON PENTLAND PETFORD PIN GIN Hi l l PINNACLES PORTSMITH PRAIRIE QUAMBY RAVENSHOE RAVENSWOOD REID RIVER RICHMOND ' ; ,\, cROlLINGSTONE . ROSENEATH IWPERTSWOOO . SELLHEIH SILKWOOD SILKY OAK SOUTH JOHNSTONE SOUTH MISSION BEACH SOUTH EDGE STAMFORD STUART SWAM LAGOON SWEERS ISLAND TARZAU TAYLORS o \ ~ JBEACH TINAROO . TOlGA TOOB ANNA TOOMU.LLA TOONPAN TOPAZ TOflRENS CREEK TREBON NE TULLY TULLY HEADS TUHOUUN UPPER BARRON UPPER HAUGHTON UPPER STONE URANDANGI ViCTORLA .... 8";: ESTAil WALKAMIN. WAl'>G>,N WATSONVILLE WAUClHS PQCl(T WIN'ION WON0CLA .WONGA9EL, WONGALING' EACH WOOOSrOCI( WOOPEN CREEK WIUGHTS CREEK ,YARRABAH YUNGAllURRA YURUGA .. :.- .> ' ...

~ ~ ~ , ~ : ~ ~ ~ f : ' { , i ; : ) / ' : < : - ~ : \ : ~ ~ ~ Y : . ~ . ~ ~ ~ : 1' _ .f ~ ~ . - \ -"'' : : . ~ ~ - ~ ~ ~ ; ; : . l , . ; - . : ~ . '> ,- ~ , ~ . ~ ._ / ~ ~ - 1 : : : v : ~ , . - , ~ ~ ; - ~ ~ - ~ : ~ : . , ~ : : ~ . . . ->: -. _ --. , :: 0 _;_ ' ~ : ~ >-.,,. ;.9

The performance of the Australian Securities and Investments CommissionSubmission 210

8/14/2019 An inquiry into the performance of the Australian Securities and Investments Commission (ASIC). no 210 - Hon Bo

3/3

PARLIAMENT OF AUSTRALIAHOUSE OF REPRESENTATIVES

ackgroundKagara

HON BOB K TTER MPederal Member for Kennedy-3-

The Perth based company, Kagara, suspe "lded t h e ~ r operations in Far North Queensland(near Mt Surprise) and appointed Taylor Woodings (now calied FTI Consuiting) as voluntaryadministrators on April 29 2012 leaving a wake of unsecured creditors (both contractors andemployees) owed a significant amount of money.Actions undertaken by our office include:Liaising and advocating for constituent rights with State Member fo r Dalrymple,

Shane Knuth;Regular meetings with creditors ;Regular meetings with receivers;Several pubiic meetings open to receivers and contractors;Meetings with relevant Federal Ministers and Parliamentary Secretaries;Meetings with ASIC Regional Commissioner for Queensland, senior staff in ASIC,and the Chair of ASIC;Highlighting the Kagara receivership matter with the Parliamentary Join Committeeon Corporations and Financial Services (Oversight of the Australian Securities andInvestments Commission - June 2013); andBringing the issue to the attention of local and nationa l media, including radio,televisions and newspapers.

South Johnstone MillIn 2001, the then grower owned mil , was sold by receivers at what was alleged to be anundervalued asset price. A group of South Johnstone cane growers took legal actioncaiming the mill receivers and NAB fai ied to take ali reasonable care to ensure the mill wassold at market value. The matter was heard in the Federal Court in 2007. The civil actionresulted in an out of court settlement. However, we have continualiy asked for AS IC tomake a referrai for a criminal investigat on to be pursued, to hold persons involved tocriminal account.Actions undertaken by our office include:Undertaken continued negotiations with lawyers in relation to the matter;Lead the charge with other members affected by the South Johnstone Mill sale tohold people civilly to account;

Regular meetings with members affected by' the sale of the South Johnstone Mill ;Asked a Question of the Treasurer (Parliament to investigate in to the SouthJohnstone Mill sa le on November 241h 2 10;Meetings with relevant Federal Ministers and Par iamentary Secretaries;Meetings with ASIC Regional Commissioner for Queensland, senior staff in AS IC,and the Chair of ASIC; andBringing the issue to the attention of local and national media, including radio,televisions and newspapers.PO Box 1638 lnnisfail QLD 4860 Ph: 07 46111)6 , Fax: 07 406I 6566PO Box 2130 Mount Isa QLD 4825 Ph: 07 47+3 3534 Fax: 07 +743 Ol89Parliament House unbem ACT 2600 Ph: 026 07 +978 Fax: 26'IT 855

/3

REPRESENTING . . . ' . . . . 'ABERGOWRIE. ALIC RIVER. AUGATOR CREEK , ALMADEN. ALOOMBA ATHERTON BABINDA BALIEI CREEK BALGAL BEACH BAMSAROO BARRINGHA BARTLE FRERE BEDARRA llLAPEN KER BEMERSIOE BENTINCK ISLAND, BIBOOHRA . B LYANA, BINGIL BAY, BIRKALLA ILACKP.OCK BLUEWATER BOHL Pl.AINI BOOGAN BOULIA BRAEMEADOWS BRAMSTON BEACH ROCKHILL BURKETOWN BUTCHERS CREEKCALCIUM . CAMOOWEAL, CAl\OWELL CARMOO . CARRINGTON CHARTERS TOWERS CHEWKO CHILLAGOE CLARE ClONCURRY CLUMP POINT COCONUTS COOLS COORUMSA COQUETTE POINT CORDLIA CORflELD , COWLEY. CROYDON. CRYSTAL CREEK, DA)ARRA, DALBEG, OARAOGEE DEERAL DIMBULAH D)ARAWONG DOOMAOGEE DUCHESS DUNK ISLAND EAST BARRON EAST PALMERSTON EAST RUSIEll EASTTRINITY . EDMONTON . EIGHT MILE CREEK . EJNAILEIGH , El ARISH ELLERBECK ETTY BAY EURAMO EVELYN CENTRAL FHUGA FISHERY FALLS FITZROY ISLAND FLYING FISH POINT FOREST HOME FORREST BEACH FORSAYTH, GAIRLOCH. GARNERS BEACH , GARRADUNGA GEORGETOWN GLEN ALLYN GLEN BOUGHTON GOLDSBOROUGH GOONDI GORDONVALE GRANITE VALE GREEN Hill GREENVALE GREGORY GUMLOW GUNPOWDER . GUNUNA. HALIFAX . HAWKINS CREEK, HELENS Hill HERBERTON HERVEY RANGE HOMESTEAD HUGHENDEN HULL HEADS INGHAM INNISFAIL INNOT HOT SPRINGS IRVINESANK AGGAN )APOONVALE ]ARRA CREEK JULAGO ]ULATTEN , JULIA CREEK KABAN KAIRI KAJABBI KALUNGA KARUMBA KEl->NEDY KOAH KURRIM NE BEACH KYl->UNA LAKE BARRINE LAKE [ACHAM LAN1'ERCOST um MULGRAVE. LONGPOCKET . LOWER TUllY . LUONDA . MAALAN. MACKNADE. MACROSIAN. MAJORS CREEK. MALANDA. MALBON. MAREEBA. MAXWELTON. MENA CREEK. MIDGENOO. MILLAA MILLAA.MJUSTREAM MlllAROO , MINBUN MINGELA MJRIWINNI MISSION BEACH MORESBY MORPELIA NOME NOl'