Gina Rinehart, Barnaby Joyce slammed for 'extraordinary' actions during trust case

Updated

Gina Rinehart's son John Hancock has taken aim at federal Agriculture Minister Barnaby Joyce over his involvement in a dispute over a multi-billion-dollar family trust.

On Thursday, the New South Wales Supreme Court ordered that Gina Rinehart's daughter Bianca Rinehart be appointed trustee of the funds, currently worth more than $4 billion.

Justice Paul Brereton said Ms Rinehart had demonstrated the ability to robustly assert the rights of the trust over her mother and her company Hancock Prospecting.

I just think it's extraordinary, and this character sits three chairs down from our Prime Minister. John Hancock

In handing down his decision, Justice Brereton said it had become clear throughout the proceedings Mrs Rinehart had "gone to extraordinary lengths" to maintain control directly or indirectly of the trust.

Gina Rinehart's eldest son, John Hancock, told Radio National Breakfast the pressure extended beyond the family, with Barnaby Joyce sending his sister Hope an email trying to convince her not to proceed.

"Coming from his government email I just think it's extraordinary, and this character sits three chairs down from our Prime Minister," Mr Hancock told RN business editor Sheryle Bagwell.

"I think it's nothing short of dangerous and I would want to see exactly what communications he had prior to sending this email."

A spokesman for Mr Joyce said the letter to a member of the Rinehart family, sent when he was a Queensland senator in September 2011, had encouraged members of the Rinehart family to try to resolve the dispute, to keep it "in house" and out of public view.

"It would be a paradox now to comment publicly in the media about a family dispute which in his letter expressed then Senator Joyce's advice that there should be no public comment," the spokesman added.

Opposition Leader Bill Shorten said Mr Joyce should not have interfered in the case.

"Barnaby Joyce seems to have an opinion about everything except his day job. If it's not Johnny Depp's dogs and putting them down, it's interfering in what seems to be a very acrimonious family fight with billions of dollars at stake," he said.

"I would just say to Barnaby Joyce, please focus on your day job."

Gina Rinehart's behaviour 'closely approached intimidation'

Three of Gina Rinehart's children launched the case in 2011, arguing she had engaged in misconduct while overseeing the trust, though one daughter subsequently dropped out.

Lawyer Alan Camp, who has known the Rinehart family for more than 40 years and is now a confidant to John Hancock and Bianca Rinehart, told the ABC's 7.30 program last night the judge found a long list of misconduct against Gina Rinehart.

"Findings against Mrs Rinehart that first of all went to her manipulation of advice offered initially by PricewaterhouseCoopers which she then prevailed on them to change and they agreed somehow to change," he said.

"He found that she had deployed people, including Barnaby Joyce and others, to bring pressure to bear or attempt to bring pressure to bear on one of her younger children Hope, who later pulled out of the case."

Justice Brereton said in his judgment Mrs Rinehart's behaviour came close to intimidation.

"In the course of the litigation, Mrs Rinehart ... has repeatedly, directly, or through her lawyers, or through other influential connections, sought to deter the plaintiffs from prosecuting it, by measures some of which closely approach intimidation," he observed.

Despite the Supreme Court win, the feud between Gina Rinehart and her two eldest children looks set to continue.

Mr Hancock told Radio National he and his sister were relieved to an extent but the pressure of the case had taken its toll.

He also said Ms Rinehart would have a lot of work to do going through all the trust documents that the court had now ordered her mother to hand over.

"My sister will go through the trust records that have so far been denied to us and look for any irregularities or past conduct of the previous trustee," he said.

"We've also got a Federal Court action which is claiming rights to certain mining tenements in Western Australia."

Hancock family trust explained Lang's legacy He established a trust for the Rinehart children — the Hope Margaret Hancock Trust.

Hancock Prospecting was divided between his daughter Gina with 51 per cent and the trust with 49 per cent

Hancock Prospecting derives income from iron ore royalty payments from Rio Tinto Gina's reign In 1995, ownership structure changed

Gina ends up with 76 per cent of Hancock Prospecting, trust left with 24 per cent

Gina shifts Hancock Prospecting focus to mine operation

Develops Roy Hill mine using $7.2 billion in debt

Royalties surge to $1 billion a year as Rio Tinto earnings explode

Hancock Prospecting uses cash for Roy Hill expansion, pays dividends of just $12m, only $3m to trust

Roy Hill due for completion September 2015 but iron ore price collapse to squeeze earnings Court decision repercussions Bianca Rinehart replaces Gina Rinehart as trustee of Hope Margaret Hancock Trust

John Hancock and sister Bianca expected to launch legal action to restore ownership of Hancock Prospecting back to 51-49

Topics: mining-industry, courts-and-trials, federal-government, australia, wa

First posted