Australian Associated Press

theguardian.com, Tuesday 5 November 2013

But former NSW ports minister Carl Scully tells inquiry he does not hate Obeid for thwarting his bid to be premier

Former NSW ports minister Carl Scully in 2006. Photograph: Tracey Nearmy/AAP

Former NSW MP Carl Scully has described Eddie Obeid's behaviour in hiding his retail interests as "quasi-criminal", but insists he does not hate the man who thwarted his attempt to become premier.

Scully appeared before the Independent Commission Against Corruption (Icac) as investigations continued on Tuesday into whether Obeid lobbied state ministers to have retail leases at Circular Quay renewed without going to tender.

Scully told the commission that Obeid was furious with him when he turned down his request for a five-year extension to a lease held by Tony Imad.

It has since emerged that Imad's businesses were bought by an Obeid front company in 2002, with relative John Aboud acting as the public face.

Scully denied a claim by Obeid's lawyer, Stuart Littlemore, that much of his evidence was untrue and was borne of hate for the disgraced former minister.

Scully and Obeid both belonged to Labor's Terrigal faction, but their friendly relationship soured when the powerful cabal backed Morris Iemma's bid for the premiership.

"No. He was one of a number of people that secured the election of Morris Iemma but I think `hate' is the wrong word," Scully said.

Like all previous ministers appearing before the Icac, Scully said Obeid never revealed his family's hidden interests in two restaurants and cafe at the quay, which earned the family about $2.5m annually.

"I regard that as quasi-criminal," Scully said.

Scully was ultimately in charge of the leases as ports minister from April 1995 to December 1997 and again from April 1999 to April 2003.

Five-year leases were signed in 2000, with the understanding expressions of interest would be sought when they ran out in August 2005.

But the inquiry heard Obeid asked Scully for a five-year extension on a lease held by Imad after documents were signed and a lengthy process, including Icac approval, had been undertaken.

"He said ... `he's spent a lot of money in doing the shop up and a five-year lease is not long enough'," Scully said.

"[I said] `It's not going to happen' and then I said, `and besides Tony Imad's a crook'."

Obeid then became "very angry" and upset and screamed "Tony Imad's not a crook ... he's a hard-working small business family man," Scully said.

The inquiry, which continues before Assistant Commissioner Anthony Whealy, is expected to last another two weeks.

Icac hearing: Eddie Obeid's behaviour described as 'quasi-criminal' | World news | theguardian.com