ASIC’S $610 MILLION QUESTION - IS IT LEGAL OR ILLEGAL
ASIC has, for a long time now, had before it the question:-
“Is the proposed transfer of a $610 million concessional loan NAIF made to Genex Power Ltd to the foreign owned and controlled JPGA Pty Ltd legal; does it comply with the Northern Australia Infrastructure Facility Act 2016?”
It seems, at this stage, agreement has been reached between NAIF, ASIC, and the legal representatives of the Bidder, (Gilbert+Tobin), and the Target, (MinterEllison) to “allow the proposed transaction to proceed under the Scheme of Arrangement, although none of us know if the transaction is legal.
What now remains to be seen is if ASIC makes an appearance at Mr Justice Black’s Court, (NSW Supreme Court), at 10.00am 16 July, and puts the case to Mr Justice that the proposed transaction is legal, (complies with the Northern Australia Infrastructure Facility Act 2016), and supports that argument with an opinion from the Solicitor-General?
This is an utterly unacceptable position for Genex Power Ltd shareholders to be in. In the first instance NAIF should have clarified the question of legality with a request for an opinion from the Solicitor-General. When ASIC became aware NAIF, for a second time, had avoided seeking an opinion from the Solicitor-General, it, ASIC, should have done so.
When I say “second time” I refer to when, in 2022, NAIF avoided going to the Solicitor-General to ask about the legality of transferring NAIF’s $610 million concessional loan from Genex Power Ltd to Skip Capital; an entity owned by two individuals, Mr Scott Farquhar and Ms Kim Jackson.
ASIC’s maladministration of matter is deplorable; confirmation of recent Parliamentary findings.
