Australian Associated Press
theguardian.com, Tuesday 29 October 2013
Icac alleges the former MP had a personal interest in avoiding tenders on prime government real estate in Circular Quay
Former Labor minister Eddie Obeid also faces claims that he influenced public officials to allow generous water licences for a coal-rich Hunter valley property owned by his family. Photograph: Paul Miller/AAP
Eddie Obeid was known in the halls of NSW parliament as a fixer but when "stuff hit the fan" in a family business, his brother-in-law says it never crossed his mind to ask the then MP for help.
Obeid is accused of lobbying state ministers Carl Scully, Michael Costa, Eric Roozendaal and Joe Tripodi to have leases on prime government-owned real estate – home to two Obeid family-owned restaurants – renewed without going to tender.
It is alleged the one-time Labor powerbroker never disclosed his personal connection to the Sorrentino restaurant and Quay Eatery at Sydney's Circular Quay.
The allegations were aired on Monday, the first day of another NSW Independent Commission Against Corruption (Icac) inquiry into Obeid, who has already been declared corrupt by the watchdog in relation to separate matters.
Under questioning from counsel assisting the commission, Ian Temby QC, the ex-MP's brother-in-law, John Abood, agreed that while he owned Circular Quay Restaurants Pty Ltd (CQPL) on paper the major owner was really an Obeid family trust. CQPL, in turn, owned the two restaurants.
The inquiry has heard Abood was given the job of managing the eateries because he was struggling to find work.
He said he spoke to "the boys" – Eddie Obeid's sons – and they got together $2.4m to buy Sorrentino, Quay Eatery and a nearby cafe.
"I was fronting the businesses, not a front for the Obeids – there's a difference, sir," Abood said.
He also denied that Obeid was called in to help when NSW Maritime, the landowner, moved to seek expressions of interest from potential new lessees without giving existing retailers preference.
"Going to market in this way has the obvious advantage of ensuring that public assets provide a good return to the public purse," Temby said in his opening address.
Ultimately, NSW Maritime altered its draft commercial lease policy to allow for direct negotiations with existing tenants and new leases were indeed granted to CQPL in 2009.
"When, if you want to say – excuse me commissioner – that stuff hit the fan, we had to react to that," Abood testified. "I never even contemplated talking to Eddie about it and I never did, sir."
The three-week inquiry is part of three fresh investigations by the corruption watchdog codenamed Cyrus, Cabot and Meeka.
Icac will also examine claims that Eddie Obeid influenced public officials to allow generous water licences for a coal-rich Hunter Valley property owned by his family.
It's also been alleged that Obeid hand-delivered to then Treasurer Michael Costa a letter requesting a meeting with a director of Direct Health Solutions, without revealing that his family and long-time associate Rocco Triulcio had a combined $450,000 investment in the company.
Temby has foreshadowed that along with Obeid, prominent bureaucrats Steve Dunn – who recently headed up the O'Farrell government's controversial Game Council review – and Mark Duffy could face corruption allegations. Dunn is expected to testify at the inquiry.
Obeid has denied any wrongdoing but promised to co-operate.
"No one is ever happy with having to answer continuous allegations but as long as they have hearings, I'll keep turning up," he told the Seven Network. "I'm not corrupt, and time will tell."
He is expected to give evidence next week.
The inquiry continues before assistant commissioner Anthony Whealy QC.
