Media Release

CONTRACTORS left out of pocket after the sale of Kagara Mining are “up in arms” and on the hunt for answers after media coverage unveiled alleged improprieties, KAP Leader and Federal Member for Kennedy Bob Katter has warned.

Kagara Mining sold its portfolio which is claimed to be worth around $400 million to Snow Peak Mining for $40 million earlier this year.

Mr Katter said question marks have hung over the deal since the sale and that demands for answers escalated when media reported a possible unhealthy link between Kagara, the liquidators and the regulators, the Australian Securities Investment Commission (ASIC).

Mr Katter said, “The major articles in the southern press concerning Kagara and an association with ASIC are extremely troubling and reignite the whole issue.
“God forbid the day when politicians interfere but we think that the proper authorities should be looking at this case.”

State Member for Dalrymple Shane Knuth said that the creditors were desperate for answers as their businesses and livelihoods face an uncertain future.
“There has been great criticism whether justified or not about the conduct of various parties.

“I am absolutely determined that the grave losses suffered by these contractors is a matter that absolutely has to be looked at by the proper authorities and I will not rest until that happens.

“These are the people that have put their life savings into the Kagara operation and these are the ones that are being done over.”

Mr Katter emphasised that he did not want to pass judgement on the rights or wrongs of any of these issues but that “there absolutely needed to be an enquiry when issues such as this arise”.

Mr Katter said that the Atherton Tablelands community was hurting and that there were more than 800 creditors who had been left “high and dry” as a result of the deal.

“With losses in the range of $100 million, this is not something that I can ignore.” Mr Katter said.