Saturday, March 02, 2013

Local News: Kagara Mining Group


Member for Dalrymple Shane Knuth and Member for Kennedy Bob Katter today met with
creditors and employees who believe administrators of the troubled Kagara Group are
keeping them in the dark on the progress of the sales campaign to extinguish the company’s
debt.

Mr Knuth said local employees and contractors have been gutted.
‘I am disturbed that some families have lost everything because they have not been paid,
small businesses have been forced to close and lay off their staff.’

‘People are already stressed about losing their jobs and contractors are owed millions of
dollars, this money should have come back to the local economy.’

Mr Knuth said the sale of Kagara Limited’s central operations in December last year and
inter-company dealings meant federal government tax penalties and state government duty
charges would have to be paid.

‘It is quite possible that the State and Federal Government will gain millions in duty
assessments and taxes at the expense of employees and contractors.’

The Office of State Revenue has made an offer for Mungana Goldmines Limited to pay
$12.19 million in duty assessments over a period of 12 months.

Mr Katter said ‘We are going to fight like tigers to ensure employees and contractors will
rightfully receive their entitlements’.

‘We will not let these hard working people be pushed around by the administrative
slithering suits from the big end of town.’

Mr Katter has immediately called for a meeting with ASIC Chairman, Greg Medcraft to
discuss the matter.

Mr Katter will also write a Question on Notice to the Prime Minister seeking assurances that
Government will do all that it can to secure the outstanding entitlements for employees and
contractors.

A working group has been formed to represent creditors and employees of the Kagara
Group.


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