Obeids, Cascade face loss of licence by:IMRE SALUSINSZKYFrom:The...

Obeids, Cascade face loss of licence

by:IMRE SALUSINSZKY
From:The Australian
February 06, 201310:53AM

THE family of Labor powerbroker Eddie Obeid and business associates could be stripped of tens of millions of dollars following a dramatic turn at this morning's hearings by the Independent Commission Against Corruption in Sydney.

ICAC commissioner David Ipp read a letter from NSW Premier Barry O'Farrell that requested his advice on whether mining licences under the spotlight at the hearings should be suspended.

Mr O'Farrell's letter, which was read aloud by Mr Ipp, requests advice on whether there should be any amendments to the mining act, and whether "the NSW Government should commence legal proceedings against any individual or company."

The ICAC is investigating whether coal exploration licenses granted to Cascade Coal in the Bylong Valley, about 150km west of Newcastle, were corruptly allocated by former resources minister Ian Macdonald to advantage Mr Obeid, a close Labor ally.

Cascade Coal entered into a joint venture agreement with companies that were a front for the Obeids.

If the license is withdrawn, the Obeid family could lose as much as $175m, while Cascade could forfeit at least three times that amount.

Mr Ipp said he would respond to Mr O'Farrell's letter within 10 days.

In a further dramatic development, Mr Ipp announced he would report on all matters involving Mr Obeid and Mr Macdonald by the end of July.

He said he would not reveal his reasons for such a tight timetable at this time, but it is likely he wishes to create maximum separation between his potentially explosive findings and the political campaign ahead of the September 14 election.

Along with mining tenements at Bylong, Mr Ipp will report on allegations that Mr Macdonald received sexual favours from tenderers for government business; that Mr Obeid's son Moses provided a discounted Honda CR-V to former state Labor treasurer Eric Roozendaal; and the circumstances under which Mr Macdonald allocated a mining license to a company owned by former union boss John Maitland.


http://www.theaustralian.com.au/news/nation/obeids-cascade-face-loss-of-licence/story-e6frg6nf-1226571478763