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Ian Macdonald found guilty of public misconduct over granting of mining licence to union boss mate

UPDATE: Two former NSW Labor Premiers and the party’s encumbent leader have united with one voice against disgraced Ian Macdonald, and the message is “throw away the key”.

Macdonald may spend time behind bars following today’s guilty verdict. Picture: Carly Earl
Macdonald may spend time behind bars following today’s guilty verdict. Picture: Carly Earl

TWO former NSW Labor Premiers and the party’s encumbent leader have united with one voice against disgraced Ian Macdonald, and the message is “throw away the key”.

Former mines minister Macdonald was today found guilty of unfairly granting a valuable mining licence to a union mate, making him the second member of the former NSW Labor government to be convicted of misconduct in public office.

The jury found Ian Macdonald guilty of two counts of misconduct in public office while his co-accused ex-union boss John Maitland has been found guilty of two counts of being an accessory to misconduct in public office.

Former NSW Labor minister Ian Macdonald was found guilty of misconduct. Picture: Carly Earl
Former NSW Labor minister Ian Macdonald was found guilty of misconduct. Picture: Carly Earl

Former Labor premier Nathan Rees, who sacked Macdonald as a minister in 2009 told 2GB: “I think like most of the people of NSW that this is a good result.

“This is the second leg of the daily double that’s come in for the people of NSW – first Eddie Obeid, now Ian Macdonald.

“Frankly, good riddance.”

Morris Iemma, who preceded Mr Rees as premier told the Daily Telegraph: “It’s a very good result for NSW. Justice and accountability has arrived – big time

“This is the second case of a gross abuse of the privilege of serving the people in the Parliament. It’s a massive breach of trust for which the most severe penalty should be given and if that includes losing superannuation and entitlements then so be it.

“To go into public office and rather than serve the public interest you end up enriching the private interest of yourself … lock ‘em up and throw away the key.”

NSW Premier Gladys Berejiklian wants the book thrown at Ian Macdonald.
NSW Premier Gladys Berejiklian wants the book thrown at Ian Macdonald.

Macdonald and Maitland sat at opposite ends of the dock and did not look at each other when the verdicts were read out after the jury deliberated for three-and-a-half days.

Macdonald is now facing the prospect of joining fellow former Labor politician Eddie Obeid behind bars after the 72-year-old was also convicted by a jury of misconduct in public office last year.

Macdonald and Maitland have both been released on bail.

Justice Christine Adamson said she did not want to delay sentencing because “I assume the Crown will be seeking a substantial custodial sentence”.

Reacting to the news, Premier Gladys Berejiklian said: “Throw the book at him”

“I think the public want to know that if people are found to be corrupt they’re actually dealt with appropriately in the courts.

“Anyone found to do the wrong thing should receive the appropriate punishment.”

Ms Berejiklian said the Independent Commission Against Corruption (ICAC) will continue catching out corrupt individuals following changes to the watchdog’s structure, including a move to three commissioners rather than one.

“The public expectation is that they not only clamp down on people who act corruptly but prevent corruption,” she added.

Labor leader Luke Foley added: “Lock him up and throw away the key.”

The Greens also welcomed the verdict, with MP Jeremy Buckingham saying: “The Greens welcome the prospect of Ian Macdonald spending many a long lonely night in jail with his mate Eddie Obeid.”

Former Labour powerbroker Eddie Obeid was jailed for a minimum of three years for failing to disclose family interests. Picture: Dean Lewins
Former Labour powerbroker Eddie Obeid was jailed for a minimum of three years for failing to disclose family interests. Picture: Dean Lewins

Macdonald was accused of granting a mining licence to a company chaired by his friend, ex-union boss John Maitland, in order to secure the friendship and bolster his opportunities after he retired from politics.

The court heard that Macdonald granted the coal exploration licence at Doyles Creek in the Hunter Valley to Doyles Creek Mining, which was chaired by Maitland, in 2008, without opening it to competitive tender and all the while keeping his fellow cabinet ministers in the dark on his plans.

Former CFMEU boss and Doyles Creek Mining chairman John Maitland was granted a valuable mining exploration licence by Ian Macdonald in 2008. Picture: Carly Earl
Former CFMEU boss and Doyles Creek Mining chairman John Maitland was granted a valuable mining exploration licence by Ian Macdonald in 2008. Picture: Carly Earl

Crown prosecutor Michael McHugh SC told the jury Maitland was from the same Labor faction as Macdonald and had supported his preselection to stand for the party in the NSW upper house.

Mr McHugh said by giving the licence to DCM and not inviting expressions of interest by other coal explorers, Macdonald prevented the state from gaining millions of dollars in payments from companies competing for the licence.

Macdonald was accused of avoiding scrutiny on his decision by keeping it secret from his fellow cabinet ministers and issuing a press release on Christmas Eve.

Macdonald’s lawyer Matthew Johnston SC denied the pair were “mates”.

Ian Macdonald was given bail after being found guilty of two counts of misconduct in public office. Picture: Carly Earl
Ian Macdonald was given bail after being found guilty of two counts of misconduct in public office. Picture: Carly Earl

He told the jury Macdonald granted the licence because it was proposed to be a training mine and mine safety was a priority for the then minister.

Mr Johnston also argued Macdonald was not legally obliged to open the licence to competitive tender before granting it.

The court heard Maitland made $6 million out of the deal when he sold shares in the company that acquired Doyles Creek Mining.

The trial saw a number Labor heavyweights give evidence for the Crown including Opposition Leader Luke Foley and former premier Morris Iemma.

Former Labour powerbroker Eddie Obeid was jailed for a minimum of three years for failing to disclose secret family interests in Circular Quay restaurants when he politically lobbied in their favour in 2007.

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Original URL: https://www.dailytelegraph.com.au/news/nsw/ian-macdonald-found-guilty-of-public-misconduct-over-granting-of-mining-licence-to-union-boss-mate/news-story/a85d99a4d7f60b8ed9c9c7afda5f072d