Eddie Jr may have had an interest in AWH: Grayson

QUEENSLAND'S top public servant Jon Grayson has admitted to knowing of the Obeid family's involvement in AWH for years.

QUEENSLAND'S top public servant Jon Grayson has admitted to knowing of the Obeid family's involvement in Australian Water Holdings years before it was revealed at the NSW inquiry.

The director-general of the Department of Premier and Cabinet yesterday confirmed he was aware that Eddie Obeid Jr "may have had an interest" in the water company despite public denials of AWH directors.

Mr Grayson, who took the public service job in March 2012, dealt with Mr Obeid in negotiations with AWH in early 2011 to set up a joint venture with his own private company. The deal was struck in March 2011, with Mr Grayson taking a 25 per cent stake in Gasfield Water Management and AWH owning the remaining 75 per cent in the company.

In response to questions from The Australian, a spokesman for Mr Grayson said in a statement he had been unaware of the Obeid family involvement when he began negotiations.

"Prior to concluding those discussions, Mr Grayson became aware that Eddie Obeid Jr may have had an interest in AWH but was unaware of the form of that interest," the statement said.

Until documents were tendered to the NSW Independent Commission Against Corruption in January last year showing the Obeid family had invested in AWH, its directors had denied any links to the now disgraced NSW Labor powerbroker, Eddie Obeid or his family.

Mr Grayson last year went into business again with Mr Obeid Jr and AWH directors, with a company incorporated in May months after allegations about Mr Obeid Sr were aired at ICAC hearings.

Mr Grayson was one of six shareholders including Mr Obeid Jr, then AWH boss Nick Di Girolamo and Mr Obeid Sr's nephew Dennis Jabour in Gasfields Water and Waste Services. In the statement, Mr Grayson said he was unaware that Mr Obeid Sr and Mr Di Girolamo were going to be part owners in the company when it was being set up.

"Mr Grayson became aware of these shareholdings after GWWS was established," the statement said.

In August, Mr Di Girolamo and Mr Obeid Jr transferred their shares to Mr Jabour.

The ICAC hearing yesterday heard that Mr Obeid Jr had mistakenly been put on the shareholder register of the company, which had a contract to dispose of waste water from Queensland coal-seam gas operations.

And despite having a contract to dispose of the waste, GWWS had no employees, no money and had not made a cent of profit.