Public gallery full as ICAC coal probe resumes

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Public gallery full as ICAC coal probe resumes

By court reporter Jamelle Wells, ABCUpdated January 21, 2013, 8:13 pm

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What has been described as the most significant public corruption inquiry in the history of New South Wales has resumed for 2013.

The three-part Independent Commission Against Corruption (ICAC) inquiry into former Labor ministers started late last year and is expected to run until April.

Today’s start was delayed for about 30 minutes due to technical problems, and there was a long line up to get into the public gallery before the doors opened.

Two former ministers Eric Roozendaal and Eddie Obeid have been suspended from the Labor Party while the inquiry is underway.

The second stage of the inquiry, Operation Jasper – which is examining mining licences issued by former mining minister Ian McDonald – has previously heard allegations that he leaked information and made decisions that led his Labor colleague Eddie Obeid and associates stand to profit $100 million.

It has been described as corruption not seen since the Rum Corps.

The long parade of witnesses last year included former premiers Nathan Rees and Morris Iemma, former Sydney mayor Frank Sartor and a number of merchant bankers, lawyers, farmers and associates of the Obeid family.

Eddie Obeid has publicly denied the allegations, but he and Mr McDonald are yet to give evidence.

On the witness list today were the former head of the NSW Minerals Council, Dr Nicole Williams, and Strathfield real estate agent Joseph Georges.

Dr Williams told the ICAC she was aware that in around 2008, the Labor government released a number of coal exploration licences.

She said the “invitation-only” coal licence tender process was outrageous and unprecedented and that the response from members of the minerals council was negative.

Dr Williams said there was industry outrage that licences were issued to smaller companies which were not properly equipped to handle them.

She said the was no justifiable reason to limit the licences to smaller mining companies and said it was counter-productive to the interests of the state.

“I thought these leases ought to be tendered to companies that were best placed to develop those, which had nothing to do with their size,” she said.

‘Enjoy the moment’

The inquiry heard she wrote a letter to Mr McDonald complaining about the way the licence issue was handled.

After Dr Williams tried to leave before she was cross-examined, ICAC Commissioner David Ipp told her: “You will just have to enjoy the moment.”

Dr Williams replied: “Thrilling.”

After she stepped down, it was Mr Georges’s turn in the witness stand.

Today, Mr Georges first denied having been involved in any business ventures with the Obeids, then admitted lying.

The inquiry heard allegations about a $234,000 interest-free loan he gave a company they were linked to.

The ICAC also heard there would only be half days of evidence for most of this week because some of the witnesses were “still on holidays.”
The hearing has adjourned for the day and will not sit on Friday.

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