Senator Rod Culleton has been declared bankrupt by the federal court in Perth, which would disqualify him from parliament, but he has vowed to fight on.
Culleton, who was elected as part of Pauline Hanson’s One Nation before quitting the party this week, was found bankrupt following action taken by a creditor.
Under Section 44 of the Australian constitution, a person is not allowed to continue as a member of federal parliament if he or she is an undischarged bankrupt or insolvent.
“You’ve just executed me … before I bleed to death,” Culleton was heard to say to the judge after the decision. “You have just given my estate away.”
The WA district court had ordered Senator Culleton to pay former Wesfarmers director Dick Lester $205,536 in 2013, which has since increased to $280,000, over unpaid rent relating to a $13.2m property acquisition deal in 2009 that went sour.
Culleton was granted a 21-day stay on the bankruptcy order, in which time he can appeal to the full bench of the federal court.
“I am satisfied that the respondent debtor committed the act of bankruptcy alleged in the creditor’s petition,” Justice Michael Barker said. “None of the various grounds of objection of the respondent debtor are made out.”
Culleton was visibly frustrated by the decision and told reporters outside court that he was already prepared for an appeal.
“We’ve still got legal avenues so we can appeal,” he said. “I can still stand as a senator and I’ll fight it to the end. This is my livelihood, not only for me, but for my children.”
Culleton described his situation as being in a legal rip.
“I’ll just float on my back for a while and swim to the side because I’m not bankrupt at the moment,” he said. “I’m not going to panic, I’ve been in these positions before and come out of it.”
Culleton’s Senate seat was already under a cloud because of a separate legal matter being heard in the high court over hiseligibility to contest the 2 July election following a larceny conviction, which was later annulled.
Senator Culleton quit One Nation on Sunday and Senator Hanson said she was pleased to see him go describing him as a pain in her backside.
Hanson said it was time for Culleton to step down from the Senate.
Pauline Hanson (@PaulineHansonOz)I feel sorry for Rod Culleton & his family but this was the right ruling. I hope he now acts honourably & steps down with dignity #auspol
December 23, 2016
He insists he wants to remain in the Senate as an independent but One Nation is keen to retain his seat.
If Culleton loses his appeal, and the bankruptcy order takes effect, Senate President Stephen Parry will have to wait until the outcome of a separate legal matter in the high court, before notifying the West Australian governor on how to fill the vacancy.
The high court matter is a legal challenge over Culleton’s eligibility to contest the July 2 election following a larceny conviction, which was later annulled.
If the high court rules his election is invalid then it would declare the position vacant and there could be a vote recount ordered which may result in him being replaced by his brother-in-law Peter Georgiou, who was number two on the One Nation senate ticket in WA.
If the court finds he was eligible to stand, then there would be a casual vacancy under section 15 of the constitution and One Nation would be able to nominate another person for the seat.
• Australian Associated Press contributed to this report
