Queensland Premier’s director-general Jon Grayson divests Obeid-linked assets

CAMPBELL Newman’s top public servant will offload his stake in a private company linked to the Obeid family.

Queensland premier’s director-general Jon Grayson, left, who will divest himself of all business interests to end conflict of interest claims.

CAMPBELL Newman’s top public servant will offload his stake in a private company linked to the Obeid family.

Mr Newman told parliament that Jon Grayson, director-general of the Department of Premier and Cabinet, had written to him earlier today saying he was divesting from a number of companies of which he is a major shareholder.

In his letter, Mr Grayson blamed “media attention’’ on his array of private interests – which included a company he founded last year with Eddie Obeid Jr and former Australian Water Holdings boss Nick di Girolama – for his decision.

The letter was tabled after question time, in which Mr Newman had repeatedly defended Mr Grayson over his interests and attacked Labor for raising questions about the top bureaucrats’ private business.

“There is nothing to see here,’’ Mr Newman said, labelling media interests –led by The Australian – as “spooky music’’ with no direct allegation.

But after question time, Mr Newman announced he had just been given the letter, informing him of Mr Grayson decision.

“I acknowledge the media attention, while unwarranted, plays an important role in our democratic society,’’ Mr Grayson said in the letter.

“However continued media coverage of this issues has the potential to distract from important tasks as we strive to make the Queensland Government the best public service in the country.

“Accordingly, I am devising you that I will divest my interests in full without consideration in private companies which I have a direct interest and had prior involvement in management.’’

Last year, The Australian revealed that Mr Grayson had entered into a joint venture - Gasfields Water Management - in 2011 with AWH, the company at the centre of the NSW corruption inquiry, which allegedly used taxpayer funds to expand into Queensland.

Despite the scandal, Mr Grayson, Mr di Girolamo and Mr Obeid were among six equal shareholders in a new company, Gasfields Water and Waste Services when it was set up last May.

In August, Mr Obeid Jr and Mr di Girolamo transferred their shares to Dennis ¬Jabour, the company’s sole ¬director and Mr Obeid’s cousin, in August.

Mr Grayson last month GWWS was created to “facilitate the exit of AWH’’ from the earlier joint venture, Gasfields Water Management, he had with the water infrastructure company in Queensland.

Mr Grayson’s decision is a backflip to his refusal to distance himself from his companies in recent months.

Last month, Mr Grayson told Newman government officials he will retain his stake in GWWS.

In a statement issued last month he said he had no role in its management. “Mr Grayson became aware of these shareholdings after GWWS was established,’’ the statement said of his knowledge of Mr Di Girolamo and Mr Obeid Jr initial shareholding.

The ICAC hearings have been told AWH made more than $500,000 in Queensland, and had negotiated a $5 million contract with a developer before it closed its subsidiaries late last year amid the corruption investigations.