Kate McClymont Senior Reporter
April 29, 2013
Papers: Eddie Obeid, Nathan Rees, Kristina Keneally and Ian Macdonald.
Almost 1000 pages of documents concerning the allegedly corrupt coal deal involving two former Labor ministers Ian Macdonald and Eddie Obeid were withheld from Parliament in 2009, a parliamentary inquiry has found.
In November 2009 the Legislative Council issued a call for papers regarding the exploration licence for Mount Penny, in the Bylong Valley near Mudgee.
Since then, an explosive public inquiry by the Independent Commission Against Corruption has uncovered a treasure trove of documents. Most of the crucial documents were withheld from Parliament. Those documents revealed Mr Macdonald may have corruptly granted a coal exploration licence for Mount Penny, which happened to be where the Obeid family had bought rural properties.
The Obeids have made $30 million from the coal deal and could reap a further $100 million if approval is granted for an open-cut mine at Bylong, which could be worth up to a billion dollars.
In March the Privileges Committee of the Legislative Council announced an inquiry into a possible cover-up over the failure to produce documents when Parliament asked for them in 2009.
There is some confusion about which minister had responsibility for producing the documents back then. On November 17, 2009, five days after the call for papers, Mr Macdonald and Joe Tripodi lost their cabinet spots.
In retaliation, Mr Obeid orchestrated a revolt against sitting premier Nathan Rees. Within days of Kristina Keneally becoming premier, Mr Macdonald was back in the resources portfolio. His replacement for those few weeks was Peter Primrose. There is no suggestion he was involved in any possible withholding of documents.
On November 23, 2009, the Director-General of the Department of Industry and Investment, Richard Sheldrake, wrote to the Premier's Department, saying ''I certify to the best of my knowledge all documents held by I & I and covered by the terms of the resolution have been produced''.
But the subsequent inquiry by ICAC into the Mount Penny exploration licence has revealed that Parliament was sorely misled. About 140 documents, totalling almost 1000 pages, were withheld from Parliament. These documents were obtained by ICAC using its powers to compel agencies to hand over their relevant holdings.
It is a criminal offence to thwart ICAC, but the penalties for thwarting Parliament are minor. Non-compliance over a call for papers affects only current parliamentarians. However, ministerial staff and departmental officers could be held in contempt of Parliament if they are found to have breached the request to produce the relevant Mount Penny papers.
Some of those documents revealed how Mr Macdonald had personally ordered the department to produce an exploration licence for Mount Penny, in spite of advice that more drilling was required in order to determine just how much coal was there.
On Tuesday, the Privileges Committee will release its report into the potential cover-up. Prominent barrister Bret Walker, SC, was retained by the Privileges Committee to work out which documents in ICAC's holdings should have been given to Parliament. It is understood no witnesses were called to give evidence to the Privileges Committee, so recommendations may include a formal investigation.
Mr Macdonald quit Parliament in mid-June 2010 over allegations he had rorted travel expenses. During the recent ICAC investigation, evidence was given suggesting that he was to be paid $4 million from the allegedly rigged coal tender. Notes tendered during the inquiry indicated he had previously received thousands of dollars in secret payments for advancing the interests of mates in other deals involving the government.
