FORMER Labor minister Ian Macdonald acted delinquently when he essentially "gifted" a mining exploration licence to a group of well-connected entrepreneurs, a corruption inquiry has heard.
The Independent Commission Against Corruption (ICAC) is examining whether the former mines minister gave an improper benefit to ex-union boss John Maitland and his associates relating to the licence given to Doyles Creek Mining in the NSW Hunter region in December 2008.
The ICAC is also looking at whether Mr Macdonald took improper steps to overcome departmental advice on the grant, and if he concealed any improper behaviour.
In his opening address to the ICAC, counsel assisting the commission, Peter Braham, SC, said Mr Macdonald all but handed the licence to a group of Newcastle entrepreneurs.
"This hot property was essentially gifted to a group of entrepreneurs which included John Maitland, the former national president of the Construction, Forestry, Mining and Energy Union," Mr Braham said on Monday.
"The process that was adopted is astounding."
He said the venture was promoted as a training mine, but was "in fact a mining mine".
"The proposal was for a large commercial mine," he said, noting the grant "involved real delinquency on the part of the minister in the discharge of his public office".
Mr Braham said a key question for the inquiry would be why Mr Macdonald decided to issue the licence to the entrepreneurs rather than hold a tender.
Mr Macdonald was aware a competitive bid could raise millions of dollars for the state, but the state had gained almost nothing from the process that went ahead, Mr Braham said.
He said Mr Maitland outlaid about $165,000 in relation to Doyles Creek and within three years of the grant the investment was worth about $15 million.
ICAC also heard that in addition to Mr Maitland, the inquiry would look at whether entrepreneurs Craig Ransley or Andrew Poole were involved in any wrongdoing in relation to the Doyles Creek tenement.
The inquiry continues before Commissioner David Ipp.
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