Yes Simon Kidston is a businessman and investment banker and to...

Yes Simon Kidston is a businessman and investment banker and to his credit the Kidston Storage Pumped Hydro exists.

Regrettably it seems his personal ambitions may have impacted upon Genex; as demonstrated by his attempt to have the company illegally taken over by Skip Capital in 2022. Since 2022 nothing has been done to rectify the existence of the "secretive "SECRET" NAIF loan. The same loan at the centre of the takeover by JPGA Partners Pty Ltd.

I am not a businessman; just a concerned citizen, in his twilight years, who has given time questioning the legality of transferring the $610 million concessional NAIF loan to a foreign owned and controlled entity.

Given ASIC seemingly has failed to produce evidence for Ministers King and Gallagher that the use of NAIF funds in the way propsed is legal I have sent the following letter to Mr Yanco, ASIC's CEO:-

Mr Yanco

ASIC’s FAILURE TO PRODUCED EVIDENCE.

IS ASIC GUILTY OF MISLEADING THE TWO MINISTERS RESPONSIBLE FOR THE NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY ACT 2016, MINISTERS KING AND GALLAGHER, AND THE ASSISTANT TREASURER, STEPHEN JONES?

On 17 June I was advised by the Parliamentary, Governance and Strategy Branch Department of Finance that on behalf of Assistant Treasurer and Minister for Financial Services Stephen Jones you were formally requested to consider correspondence concerning the transaction whereby JPGA Partners Pty Ltd would acquire Genex Power Ltd.

As you very well know the most crucial component of the transaction is the transfer of the NAIF $610 million taxpayer funded concessional loan. You are very much aware that the terms and conditions of that loan have been and remain secret; thus the term, “secretive “SECRET” NAIF loan”.

You are well versed in the illegal takeover attempted by Skip Capital. Your Mr Peter Witham must have briefed you on the fact that the terms and conditions of the loan Genex director Simon Kidston wanted, illegally, to see transferred to Skip Capital were cloaked in a cloud of confidentiality. Similarly, ASIC has been aware that NAIF’s Chief Legal Officer, Mr Chris Collins, seemingly did not, over a period of more than eighteen months, take steps to remedy the situation. As you must also be only too well aware, secret terms and conditions can lead to:-

1. Unfair practices

2. Hidden fees or penalties

3. Misunderstandings

4. Breach of trust

5. Legal issues

It is apparent the above points have played parts in this scurrilous and likely illegal takeover bid. Seemingly, “secretive “SECRET” terms and conditions of NAIF loans”, can be used to produce gratuitous and other rewards for those willing to misuse the secret information?

The terms and conditions of the $610 million loan were and are known to the bidder and its Genex board director, (Seshimo), and to the Board of Directors of Genex but were and continue to be assiduously withheld form the some 8,000 Genex retail shareholders. The withholding of this important information enabled the share price of Genex to be manipulated, (in the months prior to the NBIO Announcement), and gave rise to my Report of Misconduct to ASIC. A Report of Misconduct which the evidence suggests, ASIC completely ignored. Is that, the failure to investigate, a correct understanding?

After your due consideration for Assistant Treasurer Jones were you able to say to him the transaction was legal? If you were not able to give Assistant Treasurer Jones that assurance, what did you say you had concluded about the transfer of the $610 million NAIF loan to the foreign owned and controlled entity?

Is it reasonable for it to be concluded, especially given your unwillingness to state otherwise, you found the transaction to be illegal. Can it be further concluded that as a consequence of your finding of illegality the two ministers responsible for the Northern Australia Infrastructure Facility Act 2016, the Hon Madeleine King, Minister for Northern Australia and Minister for Resources, and the Hon Katy Gallagher, Minister for Finance, Women and Public Service and Minister have been unable and/or unwilling to answer the following:-

“Can an assurance be given that the proposed dealing with the $610 million NAIF loan is both legal and in accordance with the Northern Australia Infrastructure Facility Act 2016.”

No such assurance has been provided to me or the thousands of other Genex Power Ltd retail shareholders via an ASX Announcement. This fact is despite repeated representation to you, (ASIC) and the ASX. So much for ASIC’s responsibilities as the market regulator.

It seems overwhelmingly evident that Ministers King and Gallagher have not made public or private statements on the legality of the transfer of the $610 million concessional loan because you have not been able to provide them with evidence that the transaction is legal. It even seems Senator Deborah O’Neill has not been cleared, by Ministers King and Gallagher, to say, to me, the transaction has been found by you to be legal? (Noting of course the apparent failure of NAIF and/or ASIC to request and obtain legal opinions from either or both the Solicitor-General and the Australian Government Solicitor).

I have cc’d this letter to the Assistant Treasurer Jones and bb’d it to the many other parties who have become, (willing or unwilling observers), of ASIC’s efforts to dismiss what seems to be the illegal or perhaps even corrupt elements associated with this highly questionable transaction.

What, at this late stage, does ASIC intend to do, if indeed it is a fact Ministers King and Gallagher have not been provided with substantial evidence the transaction was legal? ASIC must have the power to bring an illegal transaction to a halt?

Faced with any documentary evidence from ASIC that the transaction is legal what sound reason is there for ASIC to not take urgent remedial judicial action; on or before 30 July?

Howard Patrick

26 July 2024

NB

I have argued above that ASIC has misled and continues to mislead Ministers King and Gallagher. My contention is that they were misled by inadequate briefing(s), especially by ASIC and NAIF, which placed them in the position that they were unable or unwilling to answer what ought to have been the simple question shown above.

I point out to you that you have refused to inform me if you, (ASIC), formally advised Mr Justice Black of the NSW Supreme Court the contents of this letter; in particular the legality or otherwise of transferring the “secret “SECRET” NAIF concessional loan” to JPGA Partners Pty Ltd. You have not informed me. This has led me to believe that ASIC’s strategy, with respect to Mr Justice Black, was that, by not giving notice of the matter, Justice Black could and would ignore the crucial issue.