Thursday, 17 Nov 2011
It is reported that the awarding of a coal exploration license to a former union leader by the disgraced former labor minister Mr Ian Macdonald is set to be investigated by the corruption watchdog after an independent report found there was 'a circumstantial case of wrongdoing'.
The energy and resources minister Mr Chris Hartcher introduced a resolution to Parliament requiring the Independent Commission Against Corruption to investigate the circumstances surrounding the granting of the license. He told Parliament the report showed there was a clear departure from proper practice. He added that "There have been serious errors of judgment on the part of Ian Macdonald, with a cloud hanging over the dealings between him and his union mate."
In July 2011, the Department of Resources and Energy commissioned Clayton Utz to review the circumstances surrounding the awarding of the license by Mr Macdonald, who was minister for mineral resources in the former Labor government.
Mr Macdonald, who resigned from Parliament last year over an expenses scandal, awarded the license to Doyles Creek Mining, a company chaired by Mr John Maitland, a former national secretary of the Construction, Forestry, Mining and Energy Union who also had an 11% shareholding. Doyles Creek Mining was taken over by NuCoal resources last year and floated on the stock exchange for USD 100 million, eventually inflating Mr Maitland's shareholding from USD 165,000 to about USD 10 million.
The report, revealed by the Herald, found that there were other companies interested in an exploration license at Doyles Creek, in the upper Hunter. But Mr Macdonald invited Doyles Creek Mining to apply for the license, failing to put it to tender as required under departmental guidelines.
The report finds that Mr Macdonald's decision 'may well be voidable on the basis of it being in excess of jurisdiction, bad faith or manifestly unreasonable. It recommends the government establish a special commission of inquiry into the granting of the license.
The resolution, which passed the Legislative Assembly but has yet to be considered by the upper house, requires the ICAC to investigate the circumstances surrounding the application and allocation of the license and the making of profits, if any, by the shareholders of NuCoal Resources NL as proprietors of Doyles Creek Mining Pty Limited.
It asks the ICAC to advise on action the government should take and whether it should begin action against any individual or company. The government has chosen to ask Parliament to refer the case to the ICAC as it ensures that the commission must ''fully investigate'' the matter.
(sourced from www.smh.com.au)
It is reported that the awarding of a coal exploration license to a former union leader by the disgraced former labor minister Mr Ian Macdonald is set to be investigated by the corruption watchdog after an independent report found there was 'a circumstantial case of wrongdoing'.
The energy and resources minister Mr Chris Hartcher introduced a resolution to Parliament requiring the Independent Commission Against Corruption to investigate the circumstances surrounding the granting of the license. He told Parliament the report showed there was a clear departure from proper practice. He added that "There have been serious errors of judgment on the part of Ian Macdonald, with a cloud hanging over the dealings between him and his union mate."
In July 2011, the Department of Resources and Energy commissioned Clayton Utz to review the circumstances surrounding the awarding of the license by Mr Macdonald, who was minister for mineral resources in the former Labor government.
Mr Macdonald, who resigned from Parliament last year over an expenses scandal, awarded the license to Doyles Creek Mining, a company chaired by Mr John Maitland, a former national secretary of the Construction, Forestry, Mining and Energy Union who also had an 11% shareholding. Doyles Creek Mining was taken over by NuCoal resources last year and floated on the stock exchange for USD 100 million, eventually inflating Mr Maitland's shareholding from USD 165,000 to about USD 10 million.
The report, revealed by the Herald, found that there were other companies interested in an exploration license at Doyles Creek, in the upper Hunter. But Mr Macdonald invited Doyles Creek Mining to apply for the license, failing to put it to tender as required under departmental guidelines.
The report finds that Mr Macdonald's decision 'may well be voidable on the basis of it being in excess of jurisdiction, bad faith or manifestly unreasonable. It recommends the government establish a special commission of inquiry into the granting of the license.
The resolution, which passed the Legislative Assembly but has yet to be considered by the upper house, requires the ICAC to investigate the circumstances surrounding the application and allocation of the license and the making of profits, if any, by the shareholders of NuCoal Resources NL as proprietors of Doyles Creek Mining Pty Limited.
It asks the ICAC to advise on action the government should take and whether it should begin action against any individual or company. The government has chosen to ask Parliament to refer the case to the ICAC as it ensures that the commission must ''fully investigate'' the matter.
(sourced from www.smh.com.au)
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