CITIC had accused Palmer of siphoning $12 million in funds from a bank account to pay for his Palmer United Party election campaign.

But Justice David Jackson dismissed the claim yesterday, though he noted a $10 million payment to Palmer’s company Cosmos and a $2.1 million payment to Media Circus were not authorised. 

However, Jackson said he found it curious CITIC proceeded with the case despite Palmer repaying the funds.

Palmer described CITIC’s claim as fabricated and politically motivated.

“The facts of the claim were for an improper purpose because CITIC Limited was refusing to pay for hundreds of millions of dollars of iron ore, illegally occupying an Australian port and failing to pay hundreds of millions of dollars in royalties to Mineralogy,” he said.

“The strategy of CITIC Limited – a Chinese state-owned company – was to use unlimited Chinese government funds to cause havoc in Australian courts with questionable integrity to break down the good name I have enjoyed in business for over 40 years. 

“CITIC Limited also knew under the terms of the contract that I was restrained from speaking with the media or would be in breach of the contract.” 

Palmer said CITIC owed him an apology following the dismissal of the claim.

The court case is just one of many legal actions between Palmer and his company Mineralogy and CITIC over port access and royalties.