Peter Hall QC & ICAC seem obsessed with Huang Xiangmo, even while Chinese donors are happy to admit that all of them made donations to both sides of politics ; Minshen Zhu will not be called to give evidence

by Ganesh Sahathevan

ICAC Chief Commissioner Peter Hall

These are the parameters of ICAC's inquiry announced on 31 Jul 2019 , in its own words:

Public inquiry into allegations concerning political donations

The ICAC will hold a public inquiry starting Monday 26 August 2019 as part of an investigation it is conducting into allegations concerning political donations, the NSW Branch of the Australian Labor Party (ALP), members of Chinese Friends of Labor and others.

From even the first day of hearings, it is easy to see that ICAC Chief Commissioner  Peter Hall QC & ICAC seem concerned with only one donor in particular, Huang Xiangmo.

Here are but two examples of how Hall is attempting to narrow the focus of the inquiry onto Huang: 

The Icac chief commissioner, Peter Hall, asked Cheah why Huang would bring in a shopping bag full of money.

“If the cash came from multiple donors, can you explain to me, why Huang Xiangmo, said to be an extremely wealthy individual, would be carrying cash in a shopping bag on behalf of donors? Can you explain that to me?” Hall asked.

“Why would a man of his stature be undertaking such a task of a delivery man?

The answer to the above was provided by Labor’s then community relations director, Kenrick Cheah,who did not see anything extraodinary with Huang delivering cash on behalf of his friends. 

And then there was this:

Explosive evidence has already been given to Icac by Kaila Murnain, the current NSW Labor general secretary, who was an assistant secretary of Chinese Friends of Labor in 2015. She has told Icac that the former Labor state MP Ernest Wong had told her Huang was the true source of the $100,000.

‘Chilling effect on whistleblowers’: NSW accused of not acting on pledged protections

 

Read more

“Of course, Ms Murnain’s statement as to what Mr Wong is said to have told her is not, of itself, conclusive proof that there were one or more ‘straw donors’ or ‘pretend donors’ associated with the Chinese Friends of Labor function in 2015 or that there was a scheme to conceal the fact that Mr Huang was the true source of funds,” Icac counsel assisting, Scott Robertson, told the inquiry.

“I anticipate though, that other evidence bearing on that issue will be presented during the course of this public inquiry.”

Meanwhile, Minshen Zhu, one of the most high profile donors ,will not be called ;his name does not appear on the witness list.

In 2016, it was reported that ...... Minshen Zhu, had written a $2000 cheque for NSW Labor candidate Chris Minns as a donation for the 2015 election — yet Mr Zhu had apparently never met Mr Minns. The cheque was not cashed.

Given the above one would think that the Inquiry would want desperately to hear from Zhu, but no.Instead the focus remains on Huang Xiangmo who has been effectively expelled from Australia. Any findings made against him will be worthless.

END

SEE ALSO

ICAC's Peter Hall concerned with Chinese donations to the ALP,but not Liberals: Hall seems conflicted by the fact that an investigation into Minshen Zhu & Top Group's donations to NSW Liberals will involve the LPAB & AG Speakman 

https://gsahathevan.blogspot.com/2019/07/icacs-peter-hall-concerned-with-chinese.html

Premier Berejiklian has no choice but to "comment on national security matters or briefings": Her AG and Government have given the appearance that they have been compromised by the Communist Party China

by Ganesh Sahathevan

Note that Berejiklian speaks of the Lunar New Year's significance to Koreans, Vietnamese and others,but that the only community representatives mentioned are those from the Chinese community

Well and good for Premier Gladys Berejiklian to say,as reported by the SMH that she “does not comment on national security matters or briefings”.



Meanwhile her Attorney General, the Member For Cronulla Mark Speakman who has responsibility for security and intelligence issues has clearly compromise himself:

NSW Dept of Education expels Confucius Institute from schools, but Minshen Zhu and his law school continue to receive preferential treatment from the AG NSW Mark Speakman and his LPAB

Indeed he may have misled Parliament with regards the Berejiklian Government's dealings with Zhu and his Top Group:

Berejiklian Government fails to disclose action/inaction against NSW Liberal Party donor Top Education Group, claims harrassment by journalist querying non-disclosure

The Premier, her AG, and other members of her Government have compromised themselves. What is needed is an explanation of their actions, which happen to concern national security.

END 

Chinese influence in NSW :Tensions among MPs suggests division between haves and have nots

by Ganesh Sahathevan

The 2016 ACETCA annual gala dinner, attended by several Labor and Liberal MPs.

The Sydney Morning Herald has reported that Clive Hamilton who has become known as a . Chinese foreign influence expert,  "has called for Australian intelligence agencies to share more advice with politicians as some MPs voice concern they’re “completely lost” with how to deal with organisations and their donations."




The paper also reported:

Despite growing concerns of foreign interference in politics, several NSW MPs said they had never received a briefing from intelligence agencies on which organisations to look out for.

“I’ve never received a briefing from ASIO, we are completely lost,” one MP said.

“I’m walking around like a blind person going ‘I don’t know, is this a legitimate organisation’.”

Another said many politicians were nervous to attend community or fundraising events for organisations they hadn't been briefed about.

"No one knows what functions they should be saying yes or no to ... it's making a lot of people very nervous. Considering the environment, it's really risky to not be briefed," one MP said.

Against these concerns however are these statements which were reported in the same story:

In a 2018 submission to the Joint Committee on Intelligence and Security, Professor Hamilton named the Australia China Economic, Trade and Cultural Association (ACETCA) for it’s “close ties” to the Chinese government.

More than half a dozen NSW Liberal and Labor MPs have attended ACETCA events in recent years, with Liberal MP and Legislative Assembly speaker Jonathan O’Dea travelling with the association to China in June.

ACETCA has donated close to $40,000 to state political parties since 2013, with most of the cash ($29,000) given to the Liberal Party through events attended by premiers, treasurers and MPs.

Mr O’Dea travelled to Fuzhou on China’s southeastern coast for an ACETCA conference this year.

The speaker and former p arliamentary secretary for trade said while he paid for the international airfare, he received “assistance with travel, accommodation and some meals” from ACETCA on the trip, which he said he declared.

“I have for many years supported ACETCA activities and its objectives in promoting trade links between NSW/Australia and China as well as greater cultural and social understanding,” Mr O’Dea said in a statement.

ACETCA also donated close to $8000 to the Labor Party, including $1500 for an “election countdown dinner” for Ms McKay in May 2018.

A spokeswoman for Ms McKay said she would continue meeting with Chinese community groups “without fear or favour” given the cultural diversity of her electorate.

ACETCA donated towards two fundraising dinners for Liberal Member for Oatley Mark Coure, who is a ‘patron and honorary adviser’ to the organisation.

Mr Coure said he stood by his “staunch representation and advocacy” of multicultural groups in his diverse electorate.

Member for Drummoyne John Sidoti was also named twice in the donation disclosure logs to the Liberal Party.

A spokesman for Mr Sidoti said “donations are processed through the NSW Liberal Party and any inquiries about donations should be made to the NSW Liberal Party”.

Clearly there is some tension between party leaders who would have better access to the Chinese funds,and the rank and file (including lower levem MPs) whose access to that funding is determined by the leadership. 

END 

NSW Dept of Education expels Confucius Institute from schools, but Minshen Zhu and his law school continue to receive preferential treatment from the AG NSW Mark Speakman and his LPAB

by Ganesh Sahathevan

Alex Joske

@alexjoske

A few other Australians can be spotted in footage of the event, which was attended by Xi Jinping and Politburo Standing Committee Member Wang Yang. Here is Zhu Minshen, who famously paid Sam Dastyari's travel bill, shaking hands with Papa Xi 4/

3:59 PM · May 31, 2019·Twitter Web Client

China-HK protest on Australian campuses but not at Minshen Zhu controlled campuses-Are legal profession admission rules being used (again ) to suppress complaints and protests

In the words of the ABC: 

The New South Wales Department of Education has expelled a Chinese Government language program from the state's public schools due to fears of potential foreign influence

The Confucius Institute program is overseen by Chinese Government agency Hanban and teaches Mandarin in 13 public schools across Sydney and on the mid-north coast.

Meanwhile, one of the most high profile promoters of the Confucius Institute in NSW, Minshen Zhu, continues to receive preferential treatment from the NSW's most senior judicial officer, the Attorney General Mark Speakman SC, and his Legal Profession Admission Board. As this writer has asked (and keeps asking for no answer has been provided):

Why did the LPAB make an exception for China's Minshen Zhu & Top Group -AG NSW Speakman maintains political silence despite weakening share price, China protests

It has been reported here previously that that Speakman has granted Zhu powers not only to issue law degrees but also, in effect, the power to determine if graduates of his Sydney City School Of Law can be admitted to practise in NSW and in Australia. 

The LPAB is chaired by the Chief Justice of NSW, Mr Thomas Bathurst.

END

See also

Appointment of Tan Siew Ting McKeogh as Executive Officer LPAB adds to governance ,reporting issues at the LPAB, Department of Justice

Malaysian taxpayers are paying to protect Lynas from weak markets, and its debt: Lynas should issue new shares to Malaysian GLCs,and be Malaysian controlled in order to compensate for the risks.

by Ganesh Sahathevan

https://twitter.com/lynas_corp

Underlying much of the discussion about Lynas Corporation Ltd in Australia and Malaysia is the assumption that Lynas has a captive market in China for its product.

However in Lynas' own words:

The market, despite the trade tensions and the attention in the media, is quite soft. This is particularly after the economic situation in China. So demand in China is soft. There's been -- the automotive market there is not growing, which is sort of a really big driver. There's a real concern there about the effect of the trade war, and sort of the level of optimism in the market is not where it has been previously.

(Q4 2019 Lynas Corporation Ltd Earnings Call Sydney, New South Wales Aug 19, 2019 (Thomson StreetEvents) -- Edited Transcript of Lynas Corporation Ltd earnings conference call or presentation Monday, July 29, 2019 at 12:00:00am GMT)


Additionally, the rest of the world (read the USA) are not really reliant on Lynas.The US has its own rare earth facilities that it can easily ramp up:


The owner of the only U.S. rare earths mine is going on a hiring spree as it looks to significantly boost production, part of a strategy to build out American refining capability after China raised tariffs on the minerals amid an escalating trade war.

By next year, MP Materials aims to be the first U.S. company to refine rare earths since 2015 when Molycorp Inc, the former owner of California's Mountain Pass mine, went bankrupt, executives said.

"If the (U.S.) Department of Defense came to us and said, 'We need product,' we'll sell there first," he said. "We'll sell wherever we want to sell."


(See full story below)

Further, Lynas is not exactly cash rich. It has had to reschedule debt:

And then of course, the other significantly positive thing during the quarter was the rescheduling of our JARE loan facility. The significant rescheduling means that we are able to accumulate cash from operations over the next couple of years, which will pay for the capital requirements in our Lynas 2025 plan.

JARE is a special purpose company established by Japan Oil, Gas and Metals NationalCorporation (JOGMEC) and Sojitz Corporation.

Lynas is therefore a Japan-Malaysia play, with Japan providing the cash and Malaysia providing the venue,or space for the Lynas operation.This provision of a venue is essentially underwritten by the Malaysian taxpayer-the Asian Rare Earth Sdn Bhd incident is a good example of how the taxpayer is left carrying the burden. 

Given the risks that the Malaysian taxpayer is exposed to a mere 600 jobs or so cannot be a sufficient return. To properly hedge this risk, Lynas needs to become a Malaysian owned and controlled company. It can do so by issuing new shares to Malaysian GLCs (which will also provide it much needed capital) and come under Malaysian control.

That Lynas needs fresh capital should not be in doubt.In addition to its Malaysian capital commitments it is going to need many more dollars for facilities in Australia:

Lynas may need new chemicals plant in WA

END 

However,

California rare earths miner races to refine amid U.S.-China trade row

By Ernest Scheyder

ReutersAugust 24, 2019

View photos

FILE PHOTO: Heavy mining equipment hauls overburden material across Molycorp's Mountain Pass Rare Earth facility in Mountain Pass, California

By Ernest Scheyder

(Reuters) - The owner of the only U.S. rare earths mine is going on a hiring spree as it looks to significantly boost production, part of a strategy to build out American refining capability after China raised tariffs on the minerals amid an escalating trade war.

By next year, MP Materials aims to be the first U.S. company to refine rare earths since 2015 when Molycorp Inc, the former owner of California's Mountain Pass mine, went bankrupt, executives said.

The mine has relied on China for rare earth processing, fueling national security concerns. China is the world's largest processor and producer of the 17 specialized minerals used to build weapons, consumer electronics and a range of other goods. There are no known substitutes.




GRAPHIC: Rare Earth Production - https://fingfx.thomsonreuters.com/gfx/editorcharts/USA-TRADE-CHINA-RAREEARTH/0H001PGB36HY/index.html




In June, China more than doubled tariffs on U.S. rare earths imports for refining to 25 percent. On Friday, Beijing said it would add an additional 10 percent on top of that tariff rate starting next month, the latest tit-for-tat exchange in a protracted dispute between the world's top two economies.

The Trump administration has labeled rare earths critical for national defense and ordered the Pentagon to support domestic production.

"What China has recognized is that this is a strategic industry," said James Litinsky, co-chairman of MP Materials.

The company plans to boost its headcount by next year to about 400, up from about 200, and is already producing 68 percent more rare earth concentrate than under Molycorp.

But that concentrate - more than 50,000 tonnes per year - is today shipped to China for processing.

To resume refining in California, privately-held MP Materials is spending $200 million to restart mothballed equipment at the mine and build a large roasting oven.

"The tariffs are very painful, but we remain profitable," Litinsky said.

After processing, rare earths need to be turned into rare earth magnets, found in precision-guided missiles, smart bombs and military jets. But China controls the rare earths magnet industry, too.

Litinsky and peers are betting that by bringing rare earths refining back to the United States, it will encourage other investors to build magnets and other related parts in the country as well.

The mine originally opened in 1948 and has gone through a series of owners, including Chevron Corp <CVX.N>, before Molycorp went bankrupt.

MP Materials also plans to re-open the Mountain Pass chlor-alkali facility, which was built by Molycorp, Litinsky said.

The facility will recycle wastewater and produce hydrochloric acid and caustic soda to use in the rare earths separation process, saving the facility the added cost of buying the chemicals on the open market.

The company's new roaster will bake rare earth ore at high temperatures to effectively leach out the high-value minerals.




'SMART PLAY, CHINA'

It's not clear if the group will be able to re-start the processing equipment by next year or instead will face delays common in construction projects.

"Call me cynical, but history just shows if you look back on metals projects, most don't start when they were slated to come online," said Mark Seddon, an Argus metals analyst.

Once the refining equipment does switch online, the goal is to use that material on site to make more than 5,000 tonnes per year of neodymium and praseodymium (NdPr), two of the 17 types of rare earths that are used to make magnets.

Friday's tariff news means that MP Materials will need to find more customers outside of China once it restarts its California processor, pitting it against Australia's Lynas Corp <LYC.AX>, the largest rare earths miner and processor outside of China.

Lynas CEO Amanda Lacaze has vowed not to cede her company's market share outside of China.

"This will put MP Materials in direct competition with Lynas. Smart play, China," said Ryan Castilloux, managing director with Adamas Intelligence.

MP Materials is majority controlled by Chicago hedge fund JHL Capital Group and New York's QVT Financial LP, with China's Shenghe Resources Holding Co <600392.SS> holding a 9.9 percent stake.

The group bought the mine out of bankruptcy in 2017 for $20.5 million, a far cry from billions that Molycorp had invested in the facility over the years.

Litinsky says that despite the Shenghe stake, China has no control over Mountain Pass or where its products will go.

"If the (U.S.) Department of Defense came to us and said, 'We need product,' we'll sell there first," he said. "We'll sell wherever we want to sell."