I have to say, the story if true is pretty shocking, but not 100% unexpected... There are numerous stories from people who work in that general region which basically go along the lines of "you've sold your soul to the company, and there is not a lot you can do about it."
Then again Australia has numerous visa's which are attached to working for specific companies, and if that job goes, you are out of the country (and depending on how the removal happens, it can screw up your chances for returning to AU). There have been a few cases where naive foreigners have been taken for a ride from less than honest companies over here. I guess it's just we tend to have stronger IR laws to prevent that from happening.