Cape York businesses are being warned to tread carefully when it comes to the proposed Space Centre Australia near Weipa after a company belonging to the CEO and founder James Palmer went into liquidation prior to Christmas.
Palm Branch Group said it owed $661,250 when it was put into liquidation on December 18 by Mr Palmer, who was a director of the company.
However, that figure could be higher.
Cape York Weekly understands that several businesses, including one prominent Weipa company, are owed money by Palm Branch Group.
This was not declared in the liquidation report submitted to the Australian Securities and Investments Commission.
The liquidator’s report said Palm Branch Group owed $218,000 to former employees, $380,000 to the Australian Tax Office and $63,250 to another entity.
Mr Palmer told the Cairns Post that the actions of Palm Branch Group were not linked to Space Centre Australia, although these claims have been refuted by contractors and former employees.
“I would be very careful about getting into business (with SCA) because we’re owed quite a bit of money and I have heard stories of other businesses struggling to get payment for their work,” said a representative for the Weipa company, which asked to remain anonymous.
“It could be a great project but I’d be asking to get paid in advance before doing any work in the future.
“All the work we did was for the space centre.”