Get all your news in one place.
100’s of premium titles.
One app.
Start reading
AAP
AAP
National
Greta Stonehouse

Macdonald acted for Obeid, not NSW: Crown

Ian Macdonald's conduct was not in the best interest of the people of NSW, the Crown says. (AAP)

Former NSW Labor powerbroker Eddie Obeid, his son, and then-ministerial colleague Ian Macdonald conspired to corruptly reap the rewards of a coal exploration deal, a court has heard.

The overwhelming and substantial evidence of their case was even more compelling when scrutinised, the Crown said in its closing address to the Supreme Court on Monday following a lengthy judge-alone trial.

Macdonald, 71, Obeid, 77, and Obeid's son Moses, 51, have pleaded not guilty to conspiring for Macdonald to wilfully engage in misconduct as a minister between 2007 and 2009.

Macdonald, who held the mineral resources portfolio, allegedly breached impartiality and confidentiality as a government official by causing a coal release area to be created on Mount Penny in the Bylong Valley.

This was located on Obeid's rural Cherrydale Park property and the family allegedly made $30 million out of the $60 million deal.

"Ian Macdonald's conduct was not in the best interest of the people of the state of NSW but rather to advance and assist his good friend and colleague Eddie Obeid who had land at that precise location," crown prosecutor Sophie Callan SC said.

Email inquiries made by Macdonald about the land in May 2008 appeared as a "bolt out of the blue" with the Crown submitting the inference that it must have been on Eddie Obeid's behalf.

Macdonald's provision of inside information to the Obeid family caused the tender process to be rigged as seen in Moses Obeid's conduct about eight weeks before the public announcement for expressions of interest was made, the Crown submitted.

During this period the younger Obeid allegedly pursued covert property acquisitions and a joint venture deal with the mining company to which the exploration deal at Mount Penny would be granted.

Moses Obeid displayed a commercial doggedness in the plot which reflected his depth of determination to advance the interest of his family and to capitalise on the benefits yielded from the deal, Ms Callan said.

"With timing, speed, focus and agility, the knowledge that coal was on this property was acted upon."

Of other significance was Moses Obeid's lies to journalists about the Kogan Creek purchase and his outrage at the suggestion he was "going around buying farms" in other people's names, as this showed the extent to which he tried to conceal the conspiracy.

While Macdonald's multiple acts of misconduct were direct the elder Obeid took a "hands-off approach", the Crown argued.

Meanwhile, Moses Obeid took the lead in maximising his family's profit, and all three participated in the conspiracy together.

The Crown rejected the defence argument that it presented a jaded or tilted reconstruction of events.

The defence has previously argued the nine alleged acts of misconduct in public office had fundamental issues and could not be ultimately proved.

The marathon trial and one of NSW longest earlier scheduled at 26 weeks has experienced significant delays amid the COVID-19 pandemic.

The Crown's closing address before Justice Elizabeth Fullerton is expected to take up to three days.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.