WA: Turncoat PI to face payment questions at Hancock inquest

AAP General News (Australia)
08-26-2001
WA: Turncoat PI to face payment questions at Hancock inquest

PERTH, Aug 26 AAP - A private investigator who doled out $450,000 on behalf of Gina
Rinehart for "dirt" on Rose Porteous - before handing the payment details to the other
side - will appear at the Lang Hancock inquest tomorrow.

Colin Pace was not originally listed to appear at the inquest at which Mr Hancock's
daughter, Ms Rinehart, is trying to prove her former stepmother, Ms Porteous, wilfully
murdered the iron-ore tycoon.

However, Mr Pace was ordered to court in May after witness Louisa Black told West Australian
Coroner Alastair Hope that Mr Pace had "rewarded" her with $200,000 for information about
Ms Porteous.

Mr Pace gave evidence about his management of Ms Rinehart's Perth-based "witness management
and protection program" at the first sitting of the inquest, which adjourned in May and
resumed three weeks ago.

However, lawyers for Ms Rinehart wanted to further question Mr Pace, so he agreed to
appear again in the inquest's second sitting.

The former police officer has told the court he worked for Ms Rinehart until March
this year - when he left after a falling out and handed documents pertaining to the witness
payments to the Porteous camp.

Lawyers for Ms Porteous told the coroner they had paid a middleman $30,000 for the
confidential Rinehart papers.

But Mr Pace denied receiving any of this money.

He also denied keeping any of the $450,000 witness program budget - despite being unable
to show how all of Ms Rinehart's money was spent.

Mr Pace supplied evidence of payments totalling $200,000 to Ms Black, and $50,000 to
the woman who had introduced him to Ms Porteous' former personal assistant.

But he was unable to show how he had spent the remaining $200,000.

He claimed he sent $50,000 to England and gave $150,000 in cash to a Jack McPherson
who had agreed to get information on Ms Porteous in the Philippines.

Mr Pace was unable to supply contact details for Mr McPherson - who had never sent
an invoice, signed a receipt for the money or reported in writing on his findings.

The inquest into Mr Hancock's March 27, 1992 death will run for two more weeks.

Ms Rinehart is set to give evidence later this week, and Ms Porteous is scheduled to
appear in the final week.

AAP lk/sd/cjh

KEYWORD: HANCOCK

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