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Recent correspondence with the Australian Government Solicitors...

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howiepatr16

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25/06/24

10:20

Post #: 74473814
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Originally posted by howiepatr16: ↑

Minister Katy Gallagher and Assistant Treasurer Stephen Jones have asked ASIC to consider the situation concerning the intended transfer of the secretive “SECRET” $610 million concessional loan from Genex Power Ltd to J - Power.

MC24-002132 - Correspondence to the Minister for Finance [SEC=OFFICIAL]
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noreply<[email protected]>
Mon, Jun 17, 3:32 PM (8 days ago)

to me
OFFICIAL

Dear Mr Patrick

Correspondence to the Minister for Finance

Thank you for your email of 31 May 2024 to Senator the Hon Katy Gallagher, Minister for Finance, Minister for Women and Minister for the Public Service concerning ASIC and Public Integrity.

As the issues raised in your correspondence fall within the responsibilities of the Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones MP, your correspondence has been referred to the Australian Securities and Investments Commission for consideration.

Yours sincerely

Parliamentary, Governance and Strategy Branch
Department of Finance
One Canberra Avenue, Forrest, ACT, 2603

The following is an indication of the consideration ASIC needs to give to the matter:-

Analysis of the Alleged Secretive NAIF Loan Fraud Involving Genex Power, and the Overseas Corporations J-Power,

Introduction
Recent allegations have emerged concerning a potentially fraudulent and secretive loan arrangement involving Genex Power, J-Power, and the Northern Australia Infrastructure Facility (NAIF). These allegations have raised concerns among stakeholders and regulatory bodies, particularly the Australian Securities and Investments Commission (ASIC). This analysis examines the details of the alleged fraud, the entities involved, and the likelihood of such fraud according to ASIC's regulatory framework.
Background of the Entities Involved
Genex Power
Genex Power Limited is an Australian renewable energy company focused on developing projects that integrate solar, wind, and hydroelectric power. It aims to deliver sustainable energy solutions and contribute to the reduction of carbon emissions.
J-Power
J-Power, formally known as Electric Power Development Co., Ltd., is a major Japanese energy company involved in various segments of the energy sector, including thermal power, hydroelectric power, and renewable energy. J-Power has a significant presence in international markets and has been involved in numerous energy projects worldwide.
Northern Australia Infrastructure Facility (NAIF)
NAIF is a government-backed lending facility designed to provide loans for infrastructure projects in northern Australia. Its objective is to stimulate economic and population growth in the region by supporting projects that offer significant public benefits.
The Alleged Secretive Loan Fraud
The alleged fraud involves a secretive loan agreement between Genex Power, J-Power, and potentially other overseas corporations, financed by NAIF. Key allegations include:
Non-Disclosure of Loan Terms: Claims that the terms and conditions of the loan were not adequately disclosed to stakeholders or the public, leading to concerns about transparency.
Misappropriation of Funds: Allegations that the funds provided by NAIF were not used for their intended purpose but were instead diverted to other projects or activities.
Collusive Behavior: Suspicions that there was collusion between Genex Power and J-Power to secure the loan under false pretenses, potentially involving fraudulent documentation or misrepresentation of the project's benefits.
ASIC's Role and Regulatory Framework
ASIC's Mandate
The Australian Securities and Investments Commission (ASIC) is the regulatory body responsible for overseeing corporate behavior, financial services, and markets in Australia. ASIC's primary mandate includes protecting consumers and investors, ensuring fair and transparent markets, and enforcing laws against financial misconduct.
Investigative Powers
ASIC possesses extensive investigative powers to address potential fraud and misconduct. These powers include:
Document Requests: The authority to compel individuals and organizations to produce documents and information relevant to the investigation.
Search Warrants: The power to obtain and execute search warrants to gather evidence.
Formal Examinations: The ability to conduct formal interviews and examinations under oath to obtain testimonies from involved parties.
Likelihood of Fraud According to ASIC
Assessment Factors
When evaluating the likelihood of fraud, ASIC considers several critical factors:
Evidence of Misconduct: The presence of concrete evidence indicating fraudulent activities, such as falsified documents, misleading statements, or financial irregularities.
Impact Magnitude: The potential or actual impact of the alleged fraud on investors, stakeholders, and the broader market.
Behavioral Patterns: Any historical pattern of similar behavior by the entities involved, suggesting a systemic issue.
Cooperation Level: The degree of cooperation from the entities and individuals under investigation.
Potential Outcomes
Based on these factors, ASIC may pursue various outcomes:
Enforcement Actions: If substantial evidence of fraud is found, ASIC can initiate enforcement actions, including civil penalties, criminal charges, and the disqualification of directors.
Remediation Measures: ASIC may require entities to take specific actions to remedy the effects of the misconduct, such as compensating affected parties or implementing structural changes.
Public Disclosure: To maintain market confidence and ensure transparency, ASIC might publicly disclose its findings and actions.
Conclusion
The allegations of a secretive and potentially fraudulent loan arrangement involving Genex Power, J-Power, and NAIF are serious and warrant thorough investigation. ASIC's robust regulatory framework and extensive investigative powers enable it to uncover the truth behind these allegations. The likelihood of fraud, as assessed by ASIC, will depend on the evidence gathered, the extent of the impact, and the level of cooperation from the involved parties. Ensuring transparency, accountability, and fairness in such high-stakes financial dealings is crucial for maintaining the integrity of Australia's financial markets and protecting the interests of investors and the public.

The above ought to provide some guidance to those investigators in ASIC given the task of considering the situation and providing the above named ministers and the Hon Madeleine King, the Minister for Northern Australia and Resources, with ASIC’s advice.

Given NAIF did not seek a legal opinion from the Solicitor-General on the 2022 Skip Capital matter and has taken apparently the same path this time, in this JPGA Partners Pty Ltd matter, I have contacted the Office of the Australian Government Solicitor. I have provided similar constructive guidance on the situation to the AGS.

The communication with the AGS has been copied to Alexandra Whitby, (GTLaw),with the understanding she will, according to the requirements of the NSW Supreme Court, have the information come before Mr Justice Black; long before the Scheme Meeting, scheduled for 16 July 2024.

Yours sincerely

HLP

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Recent correspondence with the Australian Government Solicitors Office; sent on 21 June, received 24 June and responded to on 25 June

Dear Ms Supit

This email is coming to you out of the cold; as the saying goes.

I have endeavored to seek an answer to the question posed in the subject heading of the email.

It is a long drawn out matter which has been raised with numerous parties, including the ministers responsible for the Northern Australia Infrastructure Facility Act 2016,Ministers King and Gallagher and Attorney-General Dreyfus.

I am not going to go over the matter again with you.

What I am doing is attaching a document sent to a group I have given the nickname of the SIX WISE MEN to, (no women of course), from which you can, with your legal training and background, quickly comprehend what has gone on in the course of the proposed takeover of Genex Power Ltd by by JPGA Partners Pty Ltd (ACN 643 855 618) (J-POWER Nominee), a wholly-owned subsidiary of Electric Power Development Co.,Ltd. (J-POWER)..

As well, I have attached a document containing a letter from David Webster, an FAS with the Department of Finance. The information the letter contains is close to useless and was clearly designed to deflect away from the crucial issue before with Minister Gallagher.

I hope the AGS does not engage in such bureaucratic correspondence?

A visit to the website HotCopper will provide further background.

Obviously you are not the one to resolve this matter but I want to ensure that I can provide evidence to the NACC and others that I have formally and directly brought the outstanding issue of a Solicitor-General opinion to the attention of a senior officer in the Australian Attorney General's Office. You will know best to handle the email within the AGS structure.

I may well need to point out this, direct contact with the AGS, to certain parties in the future.

An aspect of this matter which gravely concerns me is that the loan in question is a "secretive "SECRET" concessional loan". For me this fact opens up the issue of potential fraud.

Yours sincerely

Howard Patrick

Dear Mr Howard

Australian Government Solicitor is part of the Attorney General's Department and can only advise and act for Government, so unfortunately we will not be able to assist you.
There are a range of services that can assist people with a legal problem or question. These services are delivered by legal assistance providers. Legal assistance providers operate in different states and territories. Each of these services provides different levels of legal information and advice.

You can find out more here:
https://www.ag.gov.au/legal-system/legal-assistance-services

Yours sincerely
AGS

Dear Ms Supit
Your reply was not unexpected.
At least the AGS and the Attorney-General's Department now have, within their records, evidence that you received information that NAIF has most likely failed to obtain appropriate legal advice to ensure it is acting legally.
That may become a matter of concern to the NACC. I have made a report to the NACC but apparently it has a "triage" system which precludes it from acting proactively; not unlike ASIC.
Despite your response I am assuming you have reported and acted appropriately within your Department. For you to have not reported and acted upon the knowledge/information you have been given, that NAIF may not be transferring a $610 million secretive "SECRET" loan from Genex Power Ltd to JPGA Partners Pty Ltd (ACN 643 855 618) (J-POWER Nominee), with due legal authority, may, I think, be criminal/corrupt or whatever is the most appropriate term?.
Would you please inform me to whom, within the Department, you have reported this matter?
The matter has already been brought to the attention of Attorney-General Dreyfus. Your Department's Ministerial Liaison Unit can provide you with the details. The Unit will, ultimately, receive a copy of this email.
Given the efforts of ASIC to avoid resolving this matter I have decided the Australian Federal Police should also have a record of ASIC being alerted to the situation? I have therefore CC'd this email, together with the shown attachment to the AFP.
It is disturbing that ASIC, NAIF and now the Attorney-General's Department will not disclose if the Solicitor-General, Dr Stephen Donaghue KC, has provided an opinion that has given the "GREEN LIGHT" to what is currently being processed by the legal representatives for the parties to the proposed takeover? Legal representatives who have not endeavored to make the case, to me at least, that what I am asserting is NOT correct.

I also cc'd this email to ASIC, the Department of Finance and Senators O'Neill, Bragg and Pocock.
My conduit to the NSW Supreme Court, (Mr Justice Black) Ms Alexandra Whitby, (GTLaw), has also been cc'd.
Yours sincerely

Howard Patrick.

c.c
ASIC
Department of Finance
AFP:- for direction to the appropriate area; as advised this afternoon.
Attorney-General Dreyfus
Senators O'Neill, Pocock and Bragg.

GNX Price at posting: 27.0¢ Sentiment: Hold Disclosure: Held
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