ICAC digs deeper into Obeid land deals

 "THE crucial question of who knew the Obeid family and friends had bought three landholdings in the Mount Penny area has become a central issue in the corruption inquiry.

The Independent Commission Against Corruption is examining whether it was just a ''fortuitous coincidence'' that the former resources minister Ian Macdonald granted a coal exploration licence that happened to neatly cover the three properties in which the family of the Labor powerbroker Eddie Obeid had an interest.

Brad Mullard, a senior departmental officer, was questioned as to whether he or anyone else in the department ''were aware of the Obeids' interests'' in the Mount Penny area.
                                                                                     
                                                                                         In the spotlight ... Eddie Obeid. Photo: Jon Reid
''As far as I know, we had no knowledge,'' Mr Mullard said."

''It was just a fortuitous coincidence?'' asked Robert Stitt, QC, who is representing the investment banker Richard Poole.

Mr Poole was one of the seven investors in Cascade Coal, which was ultimately the successful bidder for the Mount Penny tenement.

Cascade later secretly paid the Obeids $30 million, with the promise of a further $30 million.

The commission is investigating whether Cascade's backers Travers Duncan, Brian Flannery, John Kinghorn, John McGuigan, John Atkinson, Greg Jone and Mr Poole ''attempted to mislead the NSW government by concealing the involvement of members of the Obeid family in the acquisition of and dealings concerning the Mount Penny tenement''.

The commission appeared to be taken by surprise when Mr Obeid's barrister, Stuart Littlemore, QC, suggested on Wednesday that Mr Obeid had a discussion with Mr Macdonald not long after buying Cherrydale Park.

''Mr Obeid has said he asked Mr Macdonald to inquire about whether Anglo [mining company Anglo American] had plans under its exploration licence in the Bylong Valley.'' Mr Macdonald told Mr Obeid Anglo did not, Mr Littlemore said.

''That's news to me,'' the commissioner David Ipp said. ''So Mr Obeid will say that Mr Macdonald always knew before granting the exploration licence that Mr Obeid owned the farm Cherrydale?''

Mr Littlemore agreed, clarifying that it was an Obeid family farm.

The inquiry continues.

Read more: http://www.smh.com.au/nsw/icac-digs-deeper-into-obeid-land-deals-20121122-29svc.html#ixzz2CzY43xaP

ICAC digs deeper into Obeid land deals: