Eddie Obeid trial: Mining company didn’t know who owned Bylong coal land
A coal company boss says the identities of the land holders who owned prime mining territory weren’t known. Prosecutors say Labor’s Eddie Obeid’s family were among them.
Police & Courts
Don't miss out on the headlines from Police & Courts. Followed categories will be added to My News.
- Download our app and stay up to date anywhere, anytime
- What you get as a subscriber to The Daily Telegraph
A company told they were “guaranteed” to win approval from the NSW Government to mine coal from a lucrative plot has told a court they didn’t know the landholders who were happy to deal with them on an “exclusive” basis.
It’s alleged one landholder was ex-Labor powerbroker Eddie Obeid’s family.
Crown prosecutors allege former resources minister Ian Macondald, along with the Obeids, conspired for a coal license to be granted on the land in the Bylong Valley.
All three have pleaded not guilty.
Former director of Monaro Mining Mart Rampe, giving evidence at the conspiracy trial on Tuesday, said he didn’t know the identity of three parties who owned the majority of the land that sat atop the prospective Mount Penny coal plot in the valley.
A Monaro document, shown to the NSW Supreme Court on Tuesday said “the three individual owners that make up between them circa 75 per cent of the subject area indicate that they will form a land alliance to exclusively deal with Monaro Coal”.
A handwritten note from Mr Rampe taken at a meeting in October 2008 appeared to show a banker working with Monaro was expected to contact the landholders about their dealings.
The note said “Mt Penny (3 owners) - GB to chase them to get option agreement”.
Mr Rampe told the court “GB” was a banker named Gardner Brook.
The Crown alleges Mr Brook had been regularly updating Moses Obeid.
Mr Rampe, on Tuesday, said he did not know Mr Brook was in contact with Moses Obeid at the time of the meeting.
One month before that meeting Mr Rampe wrote to Monaro’s directors saying Mr Brook had “guaranteed” their company a minority stake in a NSW coal deposit.
Mount Penny, the letter says, was the “plum project”.
The court previously heard the Obeid family bought into the Bylong area in 2007 and had allegedly asked friends to buy up neighbouring farms.
The trial continues.
Banker ‘guaranteed’ miner a licence, Obeid trial hears
A company set to enter a joint venture with ex-political powerbroker Eddie Obeid for exploration on his coal-rich family property was “guaranteed” it would win the rights to mine on NSW land by the then Labor government, a court heard.
A former director of Monaro Mining Mart Rampe told the former Labor minister’s coal licence conspiracy trial that investment banker Gardner Brook arrived at the company’s offices “out of the blue” in July 2008 to discuss a deal.
“It was the first day I’d ever met him, or ever knew about him,” Mr Rampe told the NSW Supreme Court.
“He said words to the effect that he understands that we were interested in coal areas, and that he may have some investors who might be interested in assisting us in that project.”
Mr Brook said he had clients in India willing to do deals with coal producing companies, adding a third party wanted to enter a joint venture as a “passive investor”, the court heard.
The Crown alleges Mr Brook helped the Obeids reap $30 million by becoming silent partners in a coal venture while former resources minister Ian Macdonald leaked confidential information to them about a mining tender process.
Macdonald, Obeid and his 51-year-old son Moses have pleaded not guilty to conspiracy to commit misconduct in public office.
The trio hatched a plot for Macdonald to grant a lucrative exploration licence on Obeid family land at Mount Penny in the Bylong Valley between September 2007 and January 2009, the Crown alleges.
Mr Rampe said he yelled “yahoo!” in September 2008 when the NSW Department of Primary Industries invited Monaro to bid for 11 coal release areas targeted under an expression of interest process.
That month Mr Rampe wrote to company directors following the collapse of Lehman Brothers, indicating Mr Brook had managed to “extract” their project, the court heard.
Mr Brook had now revealed that the interests he represents are a group of Chinese companies, Mr Rampe wrote, and Mr Brook claimed he had “guaranteed” Monaro a minority stake in a substantial NSW coal deposit “virtually without cost”, Mr Rampe wrote in the letter.
“GB (Gardner Brook) has also advised that because of his involvement and connections with the project, he can guarantee a transaction for Monaro on one or more of the ex-Lithgow batch,” the letter to Monaro directors stated.
“The Mount Penny area is apparently the ‘plum’ project.”
Monaro was allegedly due to receive a 20 per cent stake of the Mount Penny project, while the Chinese investor would get a 25 per cent cut and the silent partner would reap 55 per cent.
The Crown alleges that despite not revealing the Obeids were the silent partners, Mr Brook had been regularly updating Moses Obeid.
Mr Brook is expected to testify that Mount Penny had an estimated coal yield of more than 100 million tonnes with the potential to expand to the wider area which could yield as much as 700 million tonnes.
Monaro Mining backed out of its bid for the exploration licence in the allegedly crooked tender in May 2009 because of a lack of financing.
New bidder Cascade Coal eventually won the rights to mine, and $30 million was funnelled to the Obeid family through a complex web of front companies with a promise of a further $30 million which never eventuated, prosecutor Sophie Callan said.
The trial continues.
‘Return to town’: Judge tells Obeid country jaunt is over
Eddie Obeid has been ordered to “return to town” after the spotty internet at his country estate left a NSW Supreme Court Justice repeatedly halting his conspiracy trial.
The former Labor minister, his son Moses and former mining minister Ian Macdonald are fighting charges they conspired over the purchase of what the NSW Supreme Court has heard was farmland sitting atop a fortune of coal.
All have pleaded not guilty to improper behaviour around the Obeid family’s purchase of the farm known as Cherrydale in the Bylong Valley, near Mudgee.
The elder Obeid has been allowed to dial in to the trial from Cherrydale because coronavirus poses a heightened risk to older people.
The pandemic had previously delayed the high profile trial over concerns of Obeid’s health.
But Justice Elizabeth Fullerton, on Friday, was clearly exasperated by the constant connectivity issues.
Obeid’s videolink has been frequently dropping out forcing the trial to pause while he reconnects.
When he is connected, he has often appeared only as a silhouette, he was repeatedly told to mute his microphone and his lawyer often was told to call him and sort out the issues.
“I am concerned by the reliability of the connection through to Cherrydale” Justice Fullerton said.
“I have an accused who must be in attendance during his trial to be dropping out. So I regret that I think it’s going to be necessary for him to return to town.”
She said Obeid would have to come to the city where either he could front court in person or a more reliable internet connection could be used to solve the issues.
Obeid’s son, 51, and Macdonald, 70, are attending the trial in person as are witnesses.
The court previously heard Moses told a neighbour there was $100 million worth of the resource beneath the Bylong Valley at the time they were buying Cherrydale.
He also allegedly told the court his dad wanted the property to “roast goats”.
Obeid wanted to ‘cook goats’ on hobby farm, son sought $100m coal, court hears
Moses Obeid allegedly said his Labor powerbroker father wanted to “cook goats and hang around” on a hobby farm but the $100 million worth of coal buried beneath the family’s new Bylong Valley property was the real “life changing” opportunity.
Eddie Obeid, Moses Obeid and former NSW mining Minister Ian Macdonald have all pleaded not guilty to conspiracy charges after the Obeids were accused of buying into the valley following a tip off by the Minister that the area was ripe for coal exploration.
The NSW Supreme Court on Tuesday, heard Moses had moved to Elizabeth Bay in 2005 and became fast friends with his new neighbours, panel beater Peter Fitzhenry and wife Nicole.
The couples quickly became very close, the court heard. They had dinner multiple times a week and even knocked down the fence in the backyard so their children could play together.
That was when Moses told the Fitzhenrys he and his family were looking to buy a rural property and that Cherrydale, outside Mudgee, looked like a good fit.
“My dad (Eddie Obeid) just wants to cook goats and just hang around on the property,” Mr Fitzhenry alleged Moses told him on one occasion.
Moses had showed them photos of the shed, rose garden and home on Cherrydale, Mrs Fitzhenry said, and she recalled a conversation about coal under the farm.
“The family is looking at making $100m and we will basically be set for life,” Mrs Henry said Moses told her.
Mrs Fitzhenry recalled Moses suggesting they mortgage their home to buy up a $3m property adjoining the new Obeid property because of those leases.
The Fitzhenrys, in their evidence, said they weren’t interested in buying into the Bylong Valley with the Obeids.
“I told him it was crazy to go into that venture,” Mr Fitzhenry said.
“It would attract so much objection it wouldn’t be worth doing and that was the end of the conversation.”
The court heard the panel beater was good friends with legendary horse trainer Bart Cummings, who lived up the road.
Mr Fitzhenry told the court he was at home with Moses while the younger Obeid was on the phone with Macdonald and horse racing came up.
“He gave me the phone and I gave (Macdonald) the tip,” he said.
“I gave Macca the tip, and I believe they won.”
Mr Fitzhenry said he knew Moses was “well-connected” but the court heard he held scant details about the precise work of the politician’s son as a lobbyist.
Under cross examination Mr Fitzhenry said he’d introduced Mr Cummings’ son, Anthony, to Moses.
But he said he didn’t realise Anthony had lobbied Moses to help redevelop Randwick Racecourse.
He said he had no idea Moses had lobbied for the opal industry in Lightning Ridge.
Mr Fitzhenry had vague memories of a discussion with Moses about some Russian-designed radar that can detect mineral deposits beneath the earth but had no memories of Moses wanting to “introduce” it to the state government.
Mrs Fitzhenry said she recalled Moses and Eddie Obeid meeting with Macdonald at the Elizabeth Bay home.
The trial continues before Justice Elizabeth Fullerton.
Obeid bought chunks of farmland prior to deal: court
The trial of Labor powerbroker Eddie Obeid has heard a real estate agent sold swathes of farmland to a stockman buying on behalf of unidentified “clients” that were really the NSW MP and his family.
The NSW Supreme Court also heard another man, allegedly involved in purchasing land for the Obeids, asked a local woman for directions to a property he had purchased but never seen.
MORE NEWS
Slain Hawi ally bikie was tattooed ‘softie’, friends say
MAFS stars returning to the real world to fund lifestyles
Hidden health crisis killing 2000 Australians every year
Prosecutors allege the deal would have netted the family $60 million.
The Supreme Court, on Monday, heard Mudgee real estate agent Stewart Adlington was contacted by a livestock agent who wanted to inspect an 800 acre property called Donola in mid-2008.
Mr Adlington said he drove the agent, John Rodd, to Donola and they spent a few hours looking over it.
The pair were in the car driving when Mr Rodd, the court heard, said he could offer $600,000 on behalf of his clients for Donola.
“I was not made aware who (his client) was,” Mr Adlington said.
“I trusted him on it, and saw no reason for any concern that he was wanting to view the property on behalf of someone else.”
Mr Rodd is not accused of any wrongdoing.
As they drove out of Donola, Mr Adlington said, the livestock agent asked about the farm they were travelling through – a farm known as Coggan Creek.
Coggan Creek was being sold by another agent in town and Mr Adlington said he would reach out to the owner, Ted O’Brien.
Mr O’Brien told the court he recalled Mr Adlington asking if he’d be willing to sell to the person who was moving to buy the adjoining Donola.
“Things weren’t going well,” Mr O’Brien told the court.
“I said we’d have to be.”
Mr O’Brien’s wife just had surgery, he was struggling with the work and money was too tight to hire any help.
He’d recently tried to sell the farm but the offers fell short after drought reduced the land to dust.
He told Mr Adlington he’d part with the bulk of the farm for $3.5 million and the negotiations began.
The farm was eventually transferred to a company name and then into the name of another man, Justin Kennedy Lewis.
The crown alleges Mr Lewis was also acting on behalf of the Obeids. He is not charged with wrongdoing.
Mr Adlington said he didn’t meet Mr Lewis at the time the offers were made to buy the farms.
“I think I spoke to him once, possibly twice, very late in proceedings,” the real estate agent said.
“(It was) at a time we were desperate to exchange a contract and had delay after delay after delay.”
Justice Elizabeth Fullerton has yet to decide if one witness, who runs a store in the Bylong Valley, will be called on to give evidence that she spoke with Mr Lewis who asked for directions to a property he had just purchased.
Crown Prosecutor Rebekah Rodger said Mr Lewis’ “lack of familiarity” with the property is relevant to the case because it showed he was not the “bona fide purchaser”.
“The Crown case, at its highest, is that the Obeids ostensibly had Mr Rodd view Coggan Creek, had him negotiate the purchase and then, shortly after, the Obeids transferred the interest to Justin Kennedy Lewis,” she said on Monday.
Mr Adlington said coal mining was not mentioned in the sale or lengthy negotiations of the properties.