Palmer to battle claims he misused $12m Federal MP Clive Palmer will defend against allegations he misappropriated $12 million from two Chinese-owned companies, during a trial set to get underway in Brisbane. Two subsidiaries of Chinese government-owned company CITIC Pacific are suing Mr Palmer and his company Cosmo Developments over claims $12.167 million was misused by the federal MP's company Mineralogy. CITIC Pacific subsidiaries Sino Iron and Korean Steel claim money that was deposited in an administrative fund set up by Mineralogy to run a Western Australia port was redirected. It alleges $10 million went to Cosmo Developments, of which Mr Palmer is the controlling shareholder, and $2.167 million went to the advertising firm Media Circus, which managed election advertising for the MP's Palmer United Party. The trial, which begins on Wednesday and is set down for three days in the Supreme Court in Brisbane, will centre on whether Mr Palmer committed a breach of trust. Mr Palmer has said there is no truth to the allegations, and they will be vigorously defended.