Closing on the truth as Obeids take the stand
AMY DALE and VANDA CARSON
The Daily Telegraph
January 31, 20133:40PM
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Businessman John McGuigan outside the ICAC inquiry before giving evidence yesterday. Picture: Anthony Reginato Source: The Daily Telegraph
A RECORDING taken from Moses Obeid’s laptop reveals him boasting “we can actually make a few things happen quickly” ahead of the family’s multi-million part in a coal mining venture.
ICAC has been played the first secret recording during Moses Obeid’s evidence, which has lasted all day.
The 20 minute recording, which counsel assisting Geoffrey Watson SC wryly pointed out was taken from Mr Obeid’s laptop, captured a conversation between brothers Paul, Gerard and Moses Obeid and family frontman Gardner Brook.
All of the brothers are heard swearing frequently as Mr Brook discusses the sale of 90 per cent of a mining licence at Yarrawa to the publicly listed miner Coalworks.
Towards the end of the conversation on March 3, 2010, Mr Obeid is heard discussing what would happen if “they knew we were behind it.”
ICAC alleges he was referring to Coalworks and its CEO.
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Another brother is heard commenting “they’d be s******* themselves” before Moses says “the funny thing is if they actually knew we were behind it, once they got over it, they’d actually realise we can make a few things happen quickly.”
Mr Obeid, who listened to the recording intently, told Mr Watson he now doesn’t remember what he meant by that.
He disagreed with Mr Watson’s suggestion that he is “capable of corrupt conduct” and “able to pull strings…using the power of your father.”
2.10pm: Ian Macdonald asked his staff about the little known mountain which lay on the edge of the Obeid family property before reopening the coal mining exploration licence tender, ICAC has heard.
As Moses Obeid continues his day of grilling in the ICAC witness box, he has been questioned about why Mr Macdonald was familiar with Mount Penny, a hill type feature which lies on the edge of the family’s property at Cherrydale Park.
Geoffrey Watson SC, the counsel assisting the inquiry, told Mr Obeid that two of the state’s most senior geologists gave evidence to ICAC that they have never heard of Mt Penny.
“It seems to be a very big coincidence that Ian Macdonald…knew of a geographical feature which lay on the edge of your property,” Mr Watson said.
“You’ll have to ask Mr Macdonald, I’m not him,” he said.
Mr Obeid says he only discussed issues with coal company Anglo with the minister, and not Mt Penny.
In emails among his staff, tendered to ICAC, Mr Macdonald asked his staff for a briefing on the Mt Penny tenement.
Mr Watson questioned Mr Obeid about Mr Macdonald’s decision in June 2008 when, “contrary to he advice of departmental staff”, he created the Mt Penny tenement ahead of the mining exploration licence tender reopening.
Mr Obeid said Mr Macdonald’s actions were “possibly a coincidence” but denied speaking to him about Mt Penny.
12:47 pm MOSES Obeid told ICAC the Primary Industries Department was “leaking like a sieve” but refused to reveal details.
While he has admitted that he received access and information from Mr Macdonald, through the connections of his father Eddie, he has only revealed details of a phone call and a breakfast meeting with the minister in 2008.
The inquiry has been shown notes taken of meetings with the family’s lawyers before the tender process for the coal mining exploration licences was made public in September 2008.
“That (meeting) was where and when you conceived of the idea that you could be involved in a coal mining venture, on the basis of information given to you by Ian Macdonald,” Mr Watson asked.
“Yes,” Mr Obeid said.
But he said that in talks with lawyers, his father had only one concern- the fate of the family farm.
Moses Obeid told ICAC his father “was against” selling Cherrydale Park to coal mining venture Cascade Coal.
“My father was against selling the family farm, he was against any of this that was going on inititially because that was the family retreat and he didn’t want us to bastardise the family retreat,” Mr Obeid said.
“He said ‘If you guys are going to try and flog the family farm we are going to have to find another one for the family so don’t sell it cheap”.
Cherrydale is the family farm the Obeids have visited only a handful of times, according to the evidence of the property’s staff to ICAC.
ICAC has been told the Obeid family told friends and business associates that Cherrydale Park would soon be worth several times its value because of coal being in the area, with one witness saying that Moses Obeid told him “Ian (Macdonald) is in on the deal.”
Two neighbouring properties in the area were bought by friends of the family, ICAC has heard.
Mr Obeid described the Department of Primary Industries as “leaking like a sieve” and said “I cant assume anything is confidential in (that department).”
But asked to give examples of leaks, Mr Obeid was unable to provide any.
11:45am: Moses Obeid has revealed Ian Macdonald gave him a list of mining companies over the phone after the two spoke privately about the Bylong Valley in a breakfast meeting.
He said he first spoke to Mr Macdonald about mining licences during a 2008 breakfast with his father, Michael Costa, Joe Tripodi and Eric Roozendaal at an Italian cafe near Parliament House.
The son of Eddie Obeid says his intention in seeking information about mining interests in the area where the controversial family owned property.
“I said (to Ian) if you happen to hear anything about (coal company) Anglo doing anything in Bylong, can you let me know and he said ‘sure’”, Mr Obeid told ICAC today.
He said Mr Macdonald told him he wanted to adopt a “use it or lose it” approach, because larger mining companies tended to “get the licences and sit on them” or trade among themselves.
He said in a later phone call, Mr Macdonald said “okay just take these names down” and have him a list of companies with mining interests in NSW.
“I wrote them down as he said to me this series of names,” Mr Obeid.
The high-profile son of Eddie and Judith Obeid has denied suggestions from Geoffrey Watson SC, the counsel assisting the inquiry, that he is withholding the extent of information he received from Mr Macdonald’s department.
“Now Mr Obeid I want to suggest to you now just in general terms… that you have not been open or full in respect of the information from Ian Macdonald. That you haven’t told us anything. I’m putting that proposition to you, you reject that?” Mr Watson said.
“Yes,” he replied.
11am: Moses Obeid has admitted decisions taken by Ian Macdonald over coal mining licences placed the family in a position to make up to $75 million.
In an explosive morning in the ICAC witness box, Mr Obeid has been grilled over differences in evidence he gave in earlier private hearings and his answers today.
Geoffrey Watson SC, the counsel assisting the inquiry, has warned him of the “terrible consequences” of lying to the commission.
The inquiry has been told Mr Obeid received information from Mr Macdonald about the reopening of expressions of interest for the mining licence in May or June 2008, before it was publicly made available.
“Did you have it in mind that by buying the properties (in the Bylong Valley) you could make a very large windfall profit,” Moses Obeid was asked in the earlier hearing in August last year, to which he replied “yes.”
“Do you stand by your evidence,” Mr Watson asked today.
“Yes,” Mr Obeid replied.
“Do you admit that you told Gardner Brook that the DPI intended to reopen the exploration licences?”
“Yes,” he replied.
The inquiry has been told Mr Brook acted as a front for the family in dealings with mining companies, to hide the true extent of their involvement.
He was asked by Mr Watson “do you admit that decisions taken by Ian Macdonald (in 2008) stand to benefit the Obeid family to the tune of $75 million?” to which he answered “I don’t know what decisions Ian Macdonald has made.”
“But you agree on the basis of the information given to you by Mr Macdonald regarding the intention to reopen exploration licences in your region enabled the Obeid family to make millions of dollars in profit,” Mr Watson said.
“Yes,” he said.
10:30 am ICAC has heard evidence from secret hearings last year where Moses Obeid was grilled about his family connections.
“You were using your powerful connection, ie your father to speak to a powerful man i.e the minister to acquire information which was not publicly available, correct?” Mr Watson asked him then.
Mr Obeid answered “yes”, ICAC heard.
“Do you admit that you acted on the information provided to you by Ian Macdonald to secure the right to purchase the property known as Coggin Creek (in the Bylong Valley)?” Mr Watson asked him this morning.
“Yes,” he said.
Obeid told the earlier private hearing of the inquiry that Macdonald told him on the phone that his department was going to put out a number of exploration licences in early June or late May 2008.
Macdonald told him there were a number of exploration licences which were going to come up “in your region”, Mr Obeid told the earlier hearing, held in August last year.
10:15am: Moses Obeid admitted to ICAC he used his father’s access to former minister Ian Macdonald over coal licences.
In his first minute in the witness box, in front of a packed hearing room, he agreed with the question of Geoffrey Watson SC, the counsel assisting the inquiry.
“Do you admit that you got access to Ian Macdonald to acquire information regarding coal exploration licences in the Bylong Valley through your father Eddie Obeid,” Mr Watson asked.
“Yes,” he replied.
10:05am: Moses Obeid has arrived ahead of a likely grilling in the ICAC witness box.
He is the first of seven Obeid relatives to give evidence in coming days, including former Labor powerbroker Eddie.
Mr Obeid hasn’t come to ICAC yet, but his barrister Stuart Littlemore QC arrived just before proceedings started.
*****
D-DAY has finally arrived for the Obeid family. Today ICAC zeroes in on its targets- Eddie Obeid and Moses take the stand.
As the state’s most explosive ICAC inquiry nears the finish line, today it zeroes in on its targets- with Eddie Obeid and his son Moses due to take the stand.
The hearing has been told of corruption at a level allegedly unseen since the days of the Rum Corps. This morning will see the start of the Obeid corps, with seven relatives to give evidence in coming days.
The former MP’s wife Judith was announced as a last-minute addition to today’s witness list but it is Moses, her eldest son, who is expected to step into the box first for a grilling over the family’s involvement in a multi-million dollar mining venture.
Mr Obeid’s four other sons- referred to at the inquiry as “the boys” – will give evidence tomorrow
Former minister Ian Macdonald allegedly gave the Obeids inside information potentially worth $100 million and rigged the tender process for a coal mining exploration licence in the Bylong Valley.
Mr Macdonald will give evidence next month.
Yesterday, secretly taped phone calls between the major players in the successful bidder Cascade Coal revealed a belief “the shortest distance to a pot of money” was a proposed $500 million takeover to be made after the Obeid family were bought out of the venture. ICAC was played a colourful late night call between Greg Jones, a close friend of Mr Macdonald, and businessman John McGuigan.
The March 2011 call was peppered with expletives and insults directed at Graham Cubbin, a non-executive director at White Energy, the company on the verge of the takeover. Mr McGuigan is heard describing his “discussion with the [Obeid] boys” where he reassured them “this is not some … Machiavellian play to … f … you guys around.”
The inquiry heard Cascade Coal wanted the Obeids out of their 25 per cent venture because of the poor association the family’s name carried in business, with Mr McGuigan describing their reputation as “an aroma”.
Mr Cubbin was considered a thorn in their side by Cascade Coal because of his persistent questions about the Obeid role in the deal, ICAC heard.
“This prick Cubbin who is going … to have his nuts on the f ….. quartermast,” Mr McGuigan is heard to say.
“What I’ve been thinking is … how do we get control, how do we manage reputation and what’s the shortest distance to a pot of money.”
Watching Mr McGuigan give evidence yesterday was a surprise court watcher – former Kings Cross underworld figure and convicted drug dealer Bill Bayeh.
Bayeh, still on parole for dealing in cocaine and heroin from a Double Bay cafe, would not tell The Daily Telegraph who he was there to support.
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