Malcolm Turnbull named in Panama Papers

For those using Ctrl-F to find the text of the paywalled article, here it is:


Prime Minister Malcolm Turnbull is named in the Panama Papers as a former director of a British Virgin Islands company set up and administered by law firm Mossack Fonseca to exploit a Siberian gold prospect.

Mr Turnbull and former NSW Premier Neville Wran on October 29 1993 joined the board of Star Mining NL, the Australian listed company which hoped to develop a $20 billion Siberian gold mine called Sukhoi Log.

Five weeks later, on December 3 1993, Turnbull and Wran were appointed directors of Star Mining's subsidiary in the British Virgin Islands, Star Technology Services Limited, that held the group's stake in the Sukhoi Log prospect, a joint venture called LenaGold.

A spokesman for Mr Turnbull said last night that the Prime Minister was not aware the company had been administered by Mossack Fonseca as the registered agent in Road Town, Tortola. There is no suggestion he had acted improperly.

The details are included in documents obtained by the International Consortium of Investigative Journalists known as the Panama Paper but are not part of the publicly searchable database.

Mossack Fonseca incorporated the British Virgin Islands company in November 1991, under the name Green Applied Systems, for mining entrepreneur Ian MacNee.

The name was changed to Star Technology Services in 1992, after Mr MacNee together with a Russian-Australian, Ludmilla Melnikoff, negotiated with Russian politicians for a 34.88 per cent share in LenaGold.

Mr MacNee sold Star Technology to Star Mining in late 1993 in return for cash and shares. As Star Technology now held the Australian listed company's major asset it was not unusual for Mr Wran and Mr Turnbull to be appointed to the board.

Mr Turnbull's spokesman said Mr Turnbull was not aware that the company had been administered by Mossack Fonseca. Responding to allegations that Star Technologies had made donations to Russian politicians the spokesman said Mr Turnbull was not aware of any payments to political parties or politicians made by Star during or prior to his time as director..

The use of the British Virgin Islands company provided limited visibility for Australian shareholders of the investment in Siberia: Star Technology was listed as a subsidiary in Star Mining's 1994 annual report with the note that it was a "controlled entity not required to be audited under British Virgin Islands requirements".

The Panama Papers—files originally obtained by German newspaper Süddeutsche Zeitung and accessed in a collaboration with the International Consortium of Investigative Journalists—show that Mossack Fonseca principal Raymon Fonseca had taken an interest in the company.

A fax sent by Mossack Fonseca Panama to its BVI office on November 5 1993 noted, in reference to a "Stamped License Fee Receipt" linked to Star Technology : "I refer to your fax 9425 of 2nd November 1993 in reply to Mr Fonseca, regarding John Wong's worries about the advice of payment received by him for [Star Technology]. Mr Fonseca asked me to express to you his thanks for the very through fax you sent."

In a second note in mid-1995, a Mossack Fonseca employee stated that half of Star Technology's shares were bearer shares, which were to be converted to registered shares.

While bearer shares are unusual for a wholly owned subsidiary, it's not suggested there was anything improper in Mr Turnbull's role.

He and Mr Wran resigned from Star Mining on September 1 1995 citing work commitments in Australia. They stepped down from Star Technology on September 25.

Turnbull & Partners and broker County NatWest raised $72 million for Star Mining in share placements October 1993.

Court decisions in Russia ultimately stripped Star Mining of its LenaGold stake. The company wrote off $127 million on the failed venture in 1998.

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