Media Release

KAP Federal Leader and Member for Kennedy Bob Katter is disappointed that yet again every day Australians are being let down by independent tax payer funded watch-dogs like ASIC, calling it a “pussy cat”.

“To this point in time ASIC has been a toothless tiger; more accurately a government big corporate pussy cat,” Mr Katter said.

Mr Katter continues to be outraged by ASIC’s lack of action in providing creditors of Karaga mining with information about its administration.

“The Kagara case in North Queensland, where the administrators are refusing to provide essential information to creditors, we have heard that this veil of secrecy may well have emanated from actions precipitated by the banks,” Mr Katter said.

“This essential information is vital for the 450 creditors and the 350 wage earners, most of whom have been financially destitute by the collapse of Kagara.

“It may have been possible for the company to be pulled back into economic viability, but without this information the productive resource will be lost to Australia, wages will be lost or delayed indefinitely and of the approximately 400 creditors, most will be financially destroyed.”

Mr Katter wrote to ASIC on behalf of unsecured Kagara creditors expressing our deep concerns at the administration of Kagara, by FTI Consulting (formerly Taylor Woodings), which went into voluntary administration in April 2012 owing an estimated $100 million to North Queensland employees, contractors and businesses.

ASIC gave FTI Consulting an exeption in providing audited report and other information to creditors on the condition that the administrators provide information to creditors in a timely manner.

A core complaint about the administration of Kagara is the lack of information provided to creditors, despite repeated direct requests and requests from creditors through my office. One clear inference is that the administrators are placing themselves above the parliament.

“ASIC simply has to earn their pay. Organisations like ASIC and the ACCC from the point of view of people, ordinary every day Australians, they simply do not do their job,” Mr Katter said.