Obeid 'did nothing' to reveal his gains - Sydney Morning Herald

AAP

Former NSW political powerbroker Eddie Obeid has admitted he did nothing to disclose the fact that decisions taken by former ALP colleague Ian Macdonald had conferred tens of millions of dollars in benefits on his family.

The star witness at a Sydney corruption inquiry also denied trying to distance himself from the business dealings of his sons to "save his own skin".

The former right-wing factional leader spent a testy day in the witness box at an Independent Commission Against Corruption (ICAC) hearing into claims that Mr Macdonald rigged a 2008 tender process for coal exploration licences in the Bylong Valley, west of Newcastle.

Commissioner David Ipp warned Mr Obeid he would face contempt charges if he continually avoided answering questions, and he took exception to Mr Obeid's interruptions, saying, "Can you try and control yourself? You are not in parliament now."

Counsel assisting the commission, Geoffrey Watson SC, accused Mr Obeid of fibbing, and at one point told him not to smile, which raised an objection from his counsel and a declaration from Mr Obeid to Mr Watson that he would not be intimidated "by you or anyone else".

Mr Obeid's son Moses has already agreed that decisions taken by Mr Macdonald stood to benefit the Obeid family by at least $75 million and possibly much more if a mining permit were granted at Mt Penny in the Bylong Valley.

Eddie Obeid said in evidence on Monday he had done nothing to tell Mr Macdonald, the former resources minister, about this "very substantial" benefit.

"It wasn't my position to tell him anything," Mr Obeid said, adding, "I don't believe he did it for us."

Neither did he tell the ALP, or anyone else outside his family.

Mr Obeid described as "absolute rubbish" a suggestion from Mr Watson that he was at pains to distance himself from his sons to save his own skin.

Mr Obeid said his sons had been running the family business for 25 years.

He admitted he had political influence in the ALP when he spoke to Mr Macdonald in 2008 about his family farm in the Bylong Valley, but he said he had no influence over Mr Macdonald.

He described Mr Macdonald as a good political ally and political friend but not a personal friend.

He said he had no knowledge of how Mr Macdonald created the Mt Penny coal tenement "smack on top" of Obeid land.

Asked if the family had been lucky in its dealings, he replied: "I'd say it was good planning."

Mr Watson earlier accused Mr Obeid of engaging in a "criminal conspiracy" with Mr Macdonald and members of the Obeid family which had the effect of defrauding the people of NSW.

Mr Obeid, who was not asked to respond to that claim, will continue giving evidence on Tuesday.