Clive Palmer has told the Federal Court he dined with Clive Mensink in Bulgaria a few weeks ago, but didn't ask for his nephew's home address because he wanted to know more about his girlfriend instead.
The businessman is being questioned about the collapse of his company Queensland Nickel in the Federal Court in Brisbane, despite a last-minute failed attempt to have the public examination adjourned.
Mr Mensink, who was the sole registered director of Queensland Nickel when it collapsed in 2016, has been overseas since June 2016 and has been summoned for questioning by liquidators.
The Federal Court issued two arrest warrants last year when he failed to show up for public examinations into the collapse.
Mr Palmer said the pair met for dinner in the Bulgarian capital Sofia and Mr Mensink told him investigators from the Australian Government had been looking for him.
"(He said) the Australian Government has known where he has been for a couple of years," Mr Palmer said.
"He said there had been people taking photographs of where he had been staying."
Queensland Nickel collapsed with $300 million in debts, resulting in about 800 job losses.
During heated questioning by the liquidator's barrister, Robert Newlinds SC, Mr Palmer denied suggestions he had been able to contact Mr Mensink prior to their dinner.
"You've had his phone number for ages," Mr Newlinds said.
"That's bull****," Mr Palmer replied.
Mr Newlinds told the court Mr Palmer knew his nephew was the subject of two arrest warrants for failing to appear in court to answer questions about the company's collapse.
"I don't see him as a fugitive," Mr Palmer said.
Mr Newlinds asked Mr Palmer if he wanted his nephew to come back to Australia.
"Yeah sure," Mr Palmer replied.
"He said he is happy where he was.
"I can't make him come back to Australia."
The liquidator's barrister suggested Mr Mensink might return if Mr Palmer stopped paying him.
The liquidator denied Mr Palmer's suggestion that Mr Mensink's whereabouts had been public knowledge for two years.
Mr Palmer denied suggestions he wanted Mr Mensink to stay overseas to keep him as far away from the main Supreme Court case, in which both Mr Palmer and Mr Mensink are being sued.
