Long-term CuDeco shareholder Stuart McCullagh doesn't believe he will ever see his investment money again.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
"In 12 years, I have seen my promising investment of $3,000,000 go to zero as a result of board decisions that bear all the hallmarks of a Phoenix takeover by Chinese entities owned by China state," Mr McCulloch said.
Mr McCullagh said it had been pointless asking ASIC to investigate CuDeco, owners of the long-troubled Cloncurry Rocklands Copper Mine, which collapsed in July last year with debts (including to unpaid workers, contractors and suppliers) of around $190 million while shareholders lost almost $600 million.
"For six years shareholders have informed ASIC details of corporate malfeasance and breaches of the Corporations Act, without any investigative response from ASIC other than to do nothing before the company went into liquidation, and then to say they 'don't interfere in the process of external Administration' - after the event," Mr McCullagh said.
"They are under no obligation to react to any Government request or demand - that is the structure of ASIC which was intended to be above partisan Government intervention, but ASIC uses this immunity to cover their failure to protect Australian Mum and Dad investors from entities owned by or associated with the Chinese Communist Party."
Now Copper Resources Australia owned by Hong Kong-based Dragon Field International Limited (who also own Mt Cuthbert mine aka Malaco Leichhardt) is poised to acquire what remains of CuDeco, including the Rocklands Copper Mine near Cloncurry, has submitted a bid of $30 milllon which is less than half of that offered by a rival Australian investor.
Mr McCullagh said shareholders, ex-employees, and trade creditors will get nothing from the sale to CRA.
On behalf of shareholders he wrote a letter to Treasurer Josh Frydenberg which said ASIC could easily obtain evidence that shows the receivers are ignoring an Australian bid of $90m(with $25m to pay off shareholders and other creditors) in favour of a $30m bid by CRA.
"We ask that the Treasurer take action to intervene in this sale of our company to a Chinese entity for less than 10% of its' true value.," Mr McCullagh wrote.
Last week Robbie Katter called on the Foreign Investment Review Board to investigate the sale.
READ ALSO: Nardoo sells for $35 million
While you are here, subscribe to our weekly email delivered to your inbox every Tuesday and Friday.