‘Controverisal’ Obeid family’s stake in mining venture kept secret
Amy Dale and Vanda Carson
The Daily Telegraph
December 06, 20121:30PM
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Pictured is James McGuigan (centre) leaving ICAC during a break today. Picture: Tim Hunter Source: The Daily Telegraph
THE Obeid family’s stake in a coal mining venture was kept a secret because of their “controversial” name, a corruption inquiry has heard.
But the connection was nearly revealed by James McGuigan, a junior staffer at Cascade Coal who was warned via email “Jimmy what are you thinking? You can’t say this.”
The outburst by Cascade director Richard Poole came after Mr McGuigan drafted a legal document setting out who was involved in the joint mining venture.
Later drafts were edited to remove mention of Buffalo Resources, an Obeid company.
Cascade Coal was the successful bidder for the mining exploration licence for the Mount Penny property, near Mudgee.
ICAC is investigating allegations former minister Ian Macdonald rigged the tender process for the mining licences, placing the Obeids in a position to profit to the tune of $100 million.
In his evidence this morning, Mr McGuigan admitted he gave false evidence at a private hearing earlier this year about his knowledge of the Obeid ties to Cascade Coal, saying he did so because he was “flustered.”
Mr McGuigan is the son of Cascade Coal shareholder John McGuigan.
When asked by Geoffrey Watson SC, the counsel assisting the inquiry, why he acknowledged in an email to Mr Poole of the need for secrecy with Obeid family stake, Mr McGuigan replied “they’re controversial people I guess.”
“It was a NSW parliamentarian, who was a friend of Ian Macdonald who owns a farm and then buys into a joint venture, it just doesn’t sound right,” Mr Watson told the hearing.
The inquiry continues this afternoon with mining billionaire Travers Duncan set to appear.
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