Senate debates

Tuesday, 20 November 2012

Questions without Notice: Take Note of Answers

Convention against Corruption

3:27 pm

Photo of John WilliamsJohn Williams (NSW, National Party) Share this | Hansard source

In Senator Thistlethwaite's speech, is it any wonder that Mr Eddie Obeid was never mentioned? It was Senator Thistlethwaite who backed Mr Sartor to become premier. But the Obeid-strengthened faction soon overruled that. Like my colleague Senator Brandis, I was amazed at the answer from the foreign minister, Senator Bob Carr—a one-word answer. I wonder why? It was: 'Let's steer around this time-bomb! Don't go near it!'

If what has been revealed in allegations before ICAC in New South Wales were not so serious, it would be like a comic program on television. It would be a humour show. It would be funny. But it is really serious, what is coming out there. The Independent Commission Against Corruption is investigating allegations that the family of former MP Eddie Obeid and a group of his associates stood to profit by around $100 million from inside knowledge about mining leases in the Bylong Valley. Mr Obeid allegedly concealed his involvement in the Bylong Valley through a complex network of companies and trusts. A friend of the Obeid family made a memorable appearance last week. Justin Kennedy Lewis agreed to buy the property Coggan Creek for $3.5 million in November 2008, and immediately signed a deed that would grant the Obeids 30 per cent of any profit made from reselling the farm to Monaro Mining.

What a generous man! Mr Lewis said: 'I'll buy this property, Coggan Creek, for $3.5 million,' and immediately signed a deed where he would give 30 per cent of any profits made from the reselling of that farm to the mining company—as I said, an enormously generous sort of chap.

Mr Lewis, when asked what the cows were doing on his new farm, replied, 'Walking around and just eating grass.' What a very good answer! I have lived in rural Australia all my life and I have noticed that it is quite common practice for cows to walk around and eat grass. He could not quite work out what the cows were for. He did not remember if they were beef cattle or dairy cows or cattle just there on agistment. Counsel assisting the inquiry, Geoffrey Watson SC, asked, 'Had you spoken to an agronomist?' Mr Lewis said, 'A what?' Mr Lewis said he had been told by one of Eddie Obeid's sons that the property could be sold for four times its value, because of coal deposits in the area—but he felt it was a long shot.

Let us look at the circumstances surrounding the purchase of the property Donola. The Obeids purchased a 50 per cent stake in the property, while the other half was owned by property developer brothers Rocco and Rosario Triulcio. The property quadrupled in value after Minister Macdonald opened up the region for mining. Mr Watson said, 'So you made no inquiries whatsoever about the viability of Donola as a farm?' Rosario said that, no, they had never investigated anything about it being a farm. Mr Watson said:

Ever go and consult a designer or an architect?---No.

A town planner?---No.

Did you know whether it was served by water, sewerage or power?---No.

Mr Watson later asked:

Wouldn’t have known whether they ran goats or rats or cows there would you?

The reply was:

I’m assuming they didn’t run rats.

To which Commissioner David Ipp quipped:

Not four-legged ones.

As I said, if this were not so serious, it would be like a TV comedy show. It is serious. The allegations are serious. What do the public think when people are elected into senior positions and then these allegations about them come out in an ICAC inquiry? It will all come out in the wash. We do not know what the future will bring.

Of course, the Obeid-Macdonald sideshow followed the saga of the generous discount given to former roads minister Mr Eric Roozendaal for his new Honda CRV. Mr Roozendaal was so delighted with his new toy that he forgot to get it registered in his or his wife's name and gave false information to his own agency, the Roads and Traffic Authority. As Senator Cameron said, the problem they have in the Labor Party is that in Western Sydney people do not trust them. It will be all around Australia. (Time expired)

Question agreed to.

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