Claims of insider trading and delivering $8 million in contracts to associates have been lobbed by MinRes against sacked manager-turned-’whistleblower’ Steven Pigozzo.
Claims of insider trading and delivering $8 million in contracts to associates have been lobbed by MinRes against sacked manager-turned-’whistleblower’ Steven Pigozzo, in an explosive twist to their court saga.
The mining giant took Mr Pigozzo to the Federal Court back in May, after failed peace talks over allegations he collected secret commissions and misused the miner’s confidential information.
But 48 hours later, Mr Pigozzo fired back with a counter-suit, laying bare his alleged experience at the company in a 155-paragraph statement of claim so contentious it was sealed.
Now, Mineral Resources has outlined details of its case and its demands, according to documents obtained by Business News, poring over the alleged events that led to Mr Pigozzo’s dismissal.
According to the court documents, the alleged offending began before Mr Pigozzo was promoted to the role of group sourcing manager in 2017 with a salary of $390,000 per year, where he was tasked with managing staff procurement, the sourcing of goods and negotiating with suppliers.
But in the 12 months leading up to his appointment, MinRes claims Mr Pigozzo established joint ventures with four companies which went on to secure more than $8 million worth of work with the miner over the course of two years.
In the statement of claim, MinRes alleged those companies included APMG, conveyor belt supplier TMT Australia, tools and equipment supplier A&S China and Valiant Australia; each of which was tied to either Mr Pigozzo, his three closest colleagues or his two business associates.
MinRes claims Mr Pigozzo co-led the joint venture, collecting commissions for sales, securing more favourable contractual terms and flagging upcoming job opportunities with his venture partners.
According to the MRL's court filing, Mr Pigozzo failed to disclose those conflicts of interest to his employer and engaged in conduct that could bring the company’s reputation into "disrepute".
But among the most explosive of the allegations was that Mr Pigozzo engaged in insider trading, acquiring $10,000 in securities in Empire Oil and Gas just weeks before MRL became a major shareholder.
Shares in EGO shot up by 25 per cent after the 2017 deal, the details of which Mr Pigozzo had allegedly been privy to.
MinRes says the alleged conduct came to light in October, when MRL suspended Mr Pigozzo following a probe into cost blow-outs on its new $130 million Osborne Park headquarters.
Initially, Mr Pigozzo was promised leave with pay, but a fortnight after his suspension, Mr Pigozzo was told MinRes would be withholding his pay given its preliminary findings.
Five weeks later, Mr Pigozzo tendered his resignation and engaged lawyers, claiming MRL had breached his employment contract.
But MRL refuted the allegations, telling Mr Pigozzo he was obliged to serve out his three-month notice period.
MinRes claims it has suffered loss and damage as a result of the alleged breaches and wants Mr Pigozzo to hand back any profits derived from the breaches.
The mining giant also wants Mr Pigozzo to concede he breached various sections of the Corporations Act and his contract, as well as damages and compensation.
Mr Pigozzo told Business News he rejected the allegations, labelling the statement of claim another attempt to intimidate him.
“Following my public statement this week vigorously defending my stand against Mineral Resources, and my status as a whistleblower, this new court filing is just another attempt to retaliate and intimidate me,” he said.
“I reject these allegations.
“I am very grateful for the support for my stand from ... many ex-employees...”
