Labor Inc. ICAC Obeid Family

Closing on the truth as Obeids take the stand

AMY DALE and VANDA CARSON 

The Daily Telegraph 

January 31, 2013 12:00AM

D-DAY has finally arrived for the Obeid family.

As the state's most explosive ICAC inquiry nears the finish line, today it zeroes in on its targets- with Eddie Obeid and his son Moses due to take the stand.

The hearing has been told of corruption at a level allegedly unseen since the days of the Rum Corps. This morning will see the start of the Obeid corps, with seven relatives to give evidence in coming days.

The former MP's wife Judith was announced as a last-minute addition to today's witness list but it is Moses, her eldest son, who is expected to step into the box first for a grilling over the family's involvement in a multi-million dollar mining venture.

Mr Obeid's four other sons- referred to at the inquiry as "the boys" - will give evidence tomorrow

WEALTHY businessman John McGuigan dropped his head in his hands. He faced up to one of the most embarrassing moments.
Former minister Ian Macdonald allegedly gave the Obeids inside information potentially worth $100 million and rigged the tender process for a coal mining exploration licence in the Bylong Valley.

Mr Macdonald will give evidence next month.

Yesterday, secretly taped phone calls between the major players in the successful bidder Cascade Coal revealed a belief "the shortest distance to a pot of money" was a proposed $500 million takeover to be made after the Obeid family were bought out of the venture. ICAC was played a colourful late night call between Greg Jones, a close friend of Mr Macdonald, and businessman John McGuigan.

The March 2011 call was peppered with expletives and insults directed at Graham Cubbin, a non-executive director at White Energy, the company on the verge of the takeover. Mr McGuigan is heard describing his "discussion with the [Obeid] boys" where he reassured them "this is not some ... Machiavellian play to ... f ... you guys around."

The inquiry heard Cascade Coal wanted the Obeids out of their 25 per cent venture because of the poor association the family's name carried in business, with Mr McGuigan describing their reputation as "an aroma".

Mr Cubbin was considered a thorn in their side by Cascade Coal because of his persistent questions about the Obeid role in the deal, ICAC heard.

"This prick Cubbin who is going ... to have his nuts on the f ..... quartermast," Mr McGuigan is heard to say.

"What I've been thinking is ... how do we get control, how do we manage reputation and what's the shortest distance to a pot of money."

Watching Mr McGuigan give evidence yesterday was a surprise court watcher - former Kings Cross underworld figure and convicted drug dealer Bill Bayeh.

Bayeh, still on parole for dealing in cocaine and heroin from a Double Bay cafe, would not tell The Daily Telegraph who he was there to support.