Grayson Wanted $30K to Set up Venture with a WH

Weekend Australian, Australia ~- iS ENTIA 03 May 2014, by Michael McKenna INFLUENCE· 11-JFORM • INSIGHT ~ General News, page 2 - 152.00 em' iSENTIA National- circulation 254,891 (S)

A back Grayson wanted $30k to set up venture with AWH MICHAEL McKENNA CAMPBELL Newman's top Against Corruption. They show thenewcompanywasworkingto thousands of dollars worth of ex public servant asked for $30,000 penses to expand into Queens m consultancy fees to set up a secure contracts for the disposal of waste water from the burgeon land, were billed to Sydney joint venture in Queensland with Water as part of costs to provide Australian Water Holdings ing coal-seam gas industry. The email provides the first water infrastructure in Sydney's when the company was allegedly northwest siphoning taxpayer funds from detailed evidence on the cost of the new venture, and Mr Gray On April 25, Queensland's Sydney Water to pay for its inter Crown Solicitor, Greg Cooper, state expansion. son's co-ordination in the setup of the company, which was de wrote to The Weekend Austra Documents show that a year lian, on instructions from Mr before Jon Grayson was appoint registered only late last year amid emerging allegations over Grayson: "Mr Grayson rejects ed director-general of the De any suggestion he has a conflict partment of Preruier and AWH. "Initially, equity will be held by QIP, and contributions of interest or that his sharehold Cabinet, the then businessman made by AWQ (and any other ings in those companies have in eruailedAWH boss Nick di Giro equity participants) will earn eq- fluenced any decisions made in lamo with a $450,000 estimate to the discharge of his duties." establish and begin operations uity in the company (per the forthejointventure. HOA) or other rights," Mr A month later, in March 2011, Grayson told Mr di Girolaroo. the new company - Gasfields Two other companies were Water Management-was reg mooted as partners in the ven istered with Mr Grayson taking a ture, but business records show it 25 per cent stake and A WH was just Mr Grayson and A WH through its subsidiary Australi.,; that ultimately had a stake in the Water Queensland, the remain venture. ing 75 per cent Mr Grayson has so far failed Documents, including the to answer questions about Syd eruai) have been tendered to the ney Water funds being used in NSW Independent Commission the setup ofthejointventure. Last month, ICAC heard that AWH's political donations, as well as possibly hundreds of The Australian, Australia iS ENTIA 24 Apr 2014, by Michael McKenna INFLUENCE· INFORM· INSIGHT ~ General News, page 1 - 333.00 em' iSENTIA National - circulation 116,854 (MTWTF} I~Fl~ENCE •li'iFOI!N ·INSIG!'T

A back AWH questions for Newman's offsider EXCLUSIVE

MICHAEL McKENNA The NSW Independent Com mission Against Corruption is CAMPBELLNewman's top examtmng whether former public servant is under intense NSW Labor MPs Eddie Obeid pressure after evidence emerged Sr, Joe Tripodi and Tony Kelly casting doubt on his account of a misused their positions to favour meeting with a business partner the privately held AWH, in in the company at the centre of a which the Obeid family held a NSW corruption inquiry. secret $3 million, 30 per cent Former Ipswich City Council stake. chief executive Carl Wulff last Emalls tendered to the ICAC night disputed the recollection of emerged this week revealing Mr Department of Premier and Myers discussing a then looming Cabinet head Jon Grayson - 2012 meetiog with Mr Grayson who had a joint venture with and Mr Wulff to discuss infra Australian Water Holdings - structure funding for a housing about an official meeting involv project in Ipswich. ing the company's Queensland AWH was hoping to win the boss, Wayne Myers, inJune2012. rights to build the water infra Mr Wulff said he was sur structure for the 4000-home prised there was no official re Continued on Page 6 cord of Mr Myers attending the meeting and that Mr Grayson MORE REPORTS P6 was unsure whether the busi nessman came along as part of a delegation with Mr Wulff. 'Wayne organised the meet ingfor me, and then made the in troductions between me and Grayson," Mr Wulff said "I re member because it was the only meeting I had with Grayson." The comments follow Mr Grayson's statement to The Aus tralian last month categorically ruling out any contact with rep resentatives of A WH since a one-off meeting to cut board ties in March 2012, when he first joined the government. Last year, Mr Grayson was among six equal shareholders who set up a new venture com pany, Gasfields Water and Waste Services, alongside Eddie ObeidJr and AWHboss Nick Di Girolamo, and headed by sole director Dennis Jabour, a former AWH eroployee and cousin of MrObeidJr. The Australian, Australia iSENTIA 24 Apr 2014, by Michael McKenna INFLUENCE ·INFORM· INSIGHT ~ General News, page 1 - 333.00 em' iSENTIA National - circulation 116,854 (MTWTF)

PAGE 2 of2 Copyright Agency ncensed copy 10251579316 (www.copyright.com.au) A back More doubt cast on Newman insider probe about a rental arrange Continued from Page 1 ment involving a Brisbane apartment he owned and a Ripley Valley development "I contractor on Ipswich flood am meeting with DG Premiers (I recovery works. believe you know him) and Carl The probe found no evidence Wulff CEO Ipswich City Council he had engaged in "official at !lam next Monday to discuss misconduct''. the operational and logistic At the time of publication, a issues surrouuding (couucil) spokesman for Mr Newman's taking control of the Ripley office had not responded to Mr Valley development and how the Wulff's comments. associated infrastructure can be The Premier's statement on funded," Mr Myers wrote. Monday confirmed that the AWH had already negotiated Ripley Valley project had been a $5 million agreement with land on the table at the meeting. developer Sekisui House, which "The meeting discussed the partlyownstheRipleyValleyde transfer of responsibility for the velopment, near Ipswich, west of Ripley Valley Urban Develop Brisbane. ment Area to the Ipswich City On Monday, Mr Newman's Council in accordance with the spokesman issued a statement government's election commit saying that, while the meeting ment," it said. went ahead with Mr Wulff, there Mr Newman's office and Mr was no record of Mr Myers at Grayson have since failed to tending. answer a series of written "MrGraysonrecallsMrWulff questions about who was at the brought other people with him to meeting and if there had been the meeting, but he cannot be any other contact with sure Mr Myers was one ofthem," representatives of AWH or its it said. subsidiaries. "No matters were discussed Mr Grayson, hand-picked by that presented any conflict of in Mr Newman because of his busi terestfor Mr Grayson.'' ness experience, was revealed by Mr Wulff said he had no rec The Australian as being AWH's ollection of "bringing anyone sole partner in Gasfield Water along'' other than Mr Myers. Management, set up in 2011 in Mr Myers has not returned Queensland calls to The Australian. Last year, Mr Grayson be Mr Wulff said last night he came a parinerwith Mr ObeidJr, had sought the meeting to former A WH boss Nick Di Gir discuss the then looming olamo, Mr J abour, Mr Myers and changes to Boeing's operations Tony Bellas-who was appoint' near Ipswich. ed to theNewman government's "It was an important business review of the electricity market for our area and that's why I -in Gasfields Water and Waste asked Wayne for help because I Services. knew he could get us a meeting Mr Grayson said he had only quickly," he said. a passive interest in GWWS, "That's what I discussed, but with Mr Jabour as its sole direc I'm not sure if Wayne stayed be tor. Mr Obeid and Mr Di hind with Grayson and talked Girolamo have since transferred about other things." their holdings in GWWS to Mr Mr Wulff quit Ipswich City J abour, and Mr Grayson has Council last year amid a Crime retained his stake. and Misconduct Commission The Australian, Australia iS ENTIA 22 Apr 2014 INFLUENCE ·INFORM • INSIGHT ~ General News, page 4- 205,00 em' National - circulation 116,854 (MTWTF) iSENTIA I~H~ENCE ·I~F-QRM • 'NSI&HT

Copyright Agency licensed copy (www.copyright.com.au) 10251089823 PAGE 1 of 1 A back Newman man 'not Mr Newman's spokesman is sued a stateruent yesterday say ing that, while the meeting went sure' of ahead with Mr Wulff , there was no record ofMr Myers attending. "Mr Grayson recalls Mr Wulff new company Gasfield Water AWHtie brought other people with him to and Waste Services, along with MICHAEL McKENNA the meeting, but he cannot be Mr Myers, Mr Obeid Jr, Mr Di QUEENSLAND POLITICAL sure Mr Myers was one of them," Girolamo, businessman Tony EDITOR it said. "No matters were discus Bellas and Mr Obeid's cousin CAMPBELL Newman's top pub sed that presented any conflict of DennisJabour.MrObeidandMr lic servant now says he "cannot be interest for Mr Grayson." The di Girolamo have since trans sure" if he has had official deal spokesman could not say if other ferred their holdings in GWWS to ings with an Australian Water representatives of AWH or any of Mr Jabour, and Mr Grayson has Holdings director just a month its subsidiaries were present. retained his stake. after denying any contact with his Mr Grayson, hand-picked by former business partners. Mr Newman as director-general Jon Grayson, who until last of Premier and Cabinet, was re year was in a joint "gasfields" vealed by The Australian as being venture with the company at the A WH's sole partner in Gasfield centre of the NSW corruption Water Management and later a inquiry, categorically ruled out to partner with Mr ObeidJr and for The Australian any contact with mer A WH boss Nick Di Girola representatives of AWH or its mo, in Gasfields Water and Waste Queensland subsidiaries since a Services. The companies have one-off meeting to cut board ties been trying to push into the coal in March 2012 when he first seam gas sector in the disposal of joined the government. waste water and were central to But emails, tendered to the AWH's business plans. NSW Independent Commission Last month Mr Grayson, Against Corruption, reveal the through a spokesman for Mr boss of AWH's Queensland sub Newman, said he was not aware sidiary, Wayne Myers, who had of any government dealings with been a board director with Mr the "gasfield companies" or offic Grayson in the gasfields venture, ial meeting with any representa telling AWH colleagues of his up tives of A WH or its subsidiaries coming meeting with Mr Gray after a one-off meeting with Mr soninJune2012. Di Girolamo to step down from "! am meeting with DG Pre theGWMboard. miers (I believe you know him) "Mr Grayson has had no other and Carl Wulff CEO Ipswich City contact with Mr DiGirolamo and Council at !lam next Monday to has not facilitated or encouraged discuss the operational and logis any meetings with Queensland tical issues surrounding (council) government officials and is un taking control of the Ripley Val aware of any occurring," the ley development and how the as statement said. sociated infrastructure can be Mr Grayson deregistered the funded," Mr Myers wrote. joint venture company Gasfield A WH had negotiated a $5 mil Water Management late last lion agreeruent with land devel year, as ICAC was investigating oper Sekisui House - with allegations that some of AWH's discussions being led by Eddie expansion costs into Queensland Obeid Jr - in Ipswich's Ripley were secretly billed to the state Valley. owned Sydney Water. Mr Grayson last year was one of six founding shareholders in -"'~ The Australian, Australia iS ENTIA 21 Apr 2014, by Michael McKenna INFLUENCE· INFORM· INSIGHT ~ General News, page 1 - 258.00 em' National - circulation 116,854 (MTWTF) iSENTIA

Copyright Agency licensed copy (www.copyright.com.au) 10 250937629 PAGE 1 of 1 Ji. back Newman man to keep stake in Obeid firm EXCLUSIVE Water Management, in which Mr Grayson held a 25 per cent ment. .. Mr Grayson became MICHAEL McKENNA stake. aware of these shareholdings QUEENSLAND POLITICAL EDITOR "The CEO (Mr Di Girolamo) after GWWS was established," explained thatasAWH would be the statement said of his know QUEENSLAND'S top public the company's main fmancier, it ledge of Mr Di Girolamo and Mr servant intends to retain his was appropriate that we take a ObeidJr initial shareholding. major stake in a company set up controlling interest (75 per cent) The ICAC hearings have been last year with former Australian in the company," the board min told AWH made more than Water Holdings boss Nick Di ute said. Mr Grayson had been $500,000 in Queensland, and Girolamo and Eddie ObeidJr. providing advice to AWH, had negotiated a $5 million con Jon Grayson, who was hand Continued on Page 2 tract with a developer before it picked by Campbell Newman to closed its subsidiaries late last become director-general of the year amid the corruption investi Department of Premier and gations. The board minutes also Cabinet because of his business show AWH created its wholly experience, says he has only a owned subsidiary Australian passive interest in Gasfield Water Queensland in 2009 Water and Waste Services and is around Mr Myers. The 2009 not aware of any dealings by the AWH board minutes say "the company since he joined the CEO (Mr DiGirolamo) discussed Queensland government, in the proposed appointment of Wayne Myers as a director''. March2012. Mr Di Girolamo and Mr However the minutes say "we Obeid were among six equal cannot continue to use him as a shareholders in GWWS when it Grayson consultant due to new legislation was set up last May but trans ... that prohibits government ferred their shares to Dennis to keep board members to act as lobbyists Jabour, the company's sole (Wayne is on the Queensland director and Mr Obeid's cousin, owned Ergon Energy Corpor in August. stake ation board and is chairman of Mr Grayson said GWWS was Stadiums Queensland, a Queens created to "facilitate the exit of land govermnent authority)." AWH" from an earlier joint ven infirm ture, Gasfields Water Manage ment, he had with the water continued from Page 1 infrastructure company in Queensland. through its subsidiary Australian The NSW Independent Com Water Queensland, as it pushed mission Against Corruption has for contracts in the state. heard allegations that AWH ASIC records show Gasfields secretly billed the taxpayer Water Management was deregis owned Sydney Water - with tered in December, six months which it had a contract to provide after GWWS was set up. Mr infrastructure - for expenses it Grayson now holds a one-sixth incurred in Queensland. stake in GWWS, with Mr Jabour Barry O'Farrell resigned as holding 50 per cent and the bal NSW premier last week after ance held by Labor-aligned vet admitting he had misled ICAC eran board director ·wayne Myers and former Treasury offic when he denied receiving a gift of ial Tony Bellas. Penfolds Grange from Mr Di Mr Grayson has told Newman Girolamo, who as chief executive government officials he will re of AWH was lobbying the state tain his stake in GWWS. In a government for further work. statement issued last month he An AWH board minute of said he had no role in its manage- 2011, tendered to ICAC, reported Mr Di Girolamo saying AWH lanzelv bankrolled Gasfields Sent: Wednesday, 30 April 2014 Spm

Subject: Ten news summary

1. Newman refusing to comment on Katter/PUP alliance. lntv: Palmer, 7here's never been a proposal and we won't be doing it.' lntv: Newman, on Palmer, 'I'm not here to talk about him today.' In tv: Newman, on Grayson, 'I've. not seen anything that anybody should be concerned. about.' Expletive-laden emails expose bitter feud over Obeid ventures, ICAC told

Monday May 05, 2014 33,632 online now Do you know more about a story? Real Estate Cars Jobs Dating Newsletters Fairfax Media Network

1Ex]ple1cive-laden emails expose bitter feud over Obeid ICACtold

Read later

l""""'"''""'""m,, Kate McClymont

Email article Print Reprints & permissions

are the emails exposing a bitter family feud over the Obeid family's secret business ventures at Circular Quay.

!Eddie Ot>eicl's nephew, Dennis Jabour, and the Labor MP's son Damian had a "love-hate relationship", the Independent Commission Against i~o·rrupnc>n heard on Wednesday.

IMr JabOllr, a real estate agent who later worked at Obeid-Jinked company Australian Water, was in talks with Coca-Cola about the family-owned Arc in 2009.

Obeid was Jess than impressed with his efforts, expletive·laden emails tendered at the inquiry reveal.

"Cq [Circular Quay] has been going on for years you C·-·sucker and u did nothing to get it through," Advertisement Damian Obeid wrote in an email to Mr Jabour on May 1, 2009.

"That is the way u operate bullshit your worth and your influence on the outcome so that u might be able to suck more money out of the deaL"

Damian Obeid signed off with: "Remember how we got it through halfwit u had nothing to do with it so stick that up your arse."

http://www. smh. com.au/nswI expletiveladen-emails-expose-bitter-feud-over-a beid-vent... 5/05120 14 Expletive-laden emails expose bitter feud over Obeid ventures, ICAC told Page 2 of2

j The ICAC is investigating the circumstances in which the Obeid family obtained renewals on two !lucrative cafe leases at Circular Quay without competing in a public tender.

.ln 2005, the then waterways minister Michael Costa postponed a plan to open leases in the precinct to competitive tender. lHis successor, Joe Tripodi, extended the leases in 2009 for up to 10 years . .~he inquiry has heard the value of that extension was estimated in 2001 at more than $1 million per lease. \Mr Costa and Mr Tripodi are expected to give evidence they were unaware of the Obeids' interest in the leases at the time. he email spat related to a third lease, also owned by the Obeids. 'You remind me of Pavlov's dogs the only difference is that you come on the smell of cash," Damian Obeid wrote after Mr Jabour told him he had lined p the meeting with Coca-Cola.

Mr Jabour replied: ''That's funny c---eater- its better than being a useless fat budda that feeds off everyone else's work. ~r•rry doing something yourself fatboy and you might get some respect." amian Obeid gave evidence that the family matriarch, Judith, was given a $1000-a-week "housekeeping fee" out of the takings of the Circular Quay usinesses.

ounsel assisting the inquiry, lan Temby, OC, suggested another witness had given evidence in private that Mr Obeid senior was also given $1000 per , eek out of the takings. Damian Obeld disagreed. ~I [The inquiry, in its third day, is expected to run for three weeks. I llt will also probe the Obeid family's interest in water leases over their family farm and consultancy Direct Health Solutions. ~ustralian Water will be the subject of another probe next year. I ~earn More Earn More. • Master of Social Work • Graduate Certificate in Project Management ·

Recommended From Around the Web 2x2=4 at any of our schools, so do the sums and The future of electric cars choose Origin Energy MaKos Business I.,,,., II 3D Naked Ambition review: Hong Kong's Cloud in practice: Real India examples shameless .. ZDNet Entertainment

· Hey Dad! actor Sarah Monahan wants Robert Cancer sufferer Elisha Neave dies aged 36 Hughes to go .. News. net NSW

Court hears 18-year-old Abbott Slashing RETs? The Sad Truth for Small woman raped during Biz .. buck's .. so/arquotes.com.au

Why Scarlett Johansson The car soccer mums and days will love? is the true star of Carshowroom.com.au 'Captain ..

Recommended by

Email article Print Reprints & permissions

http://www. smh.com. au/nsw/expletiveladen-emails-expose- bitter-feud -over-o beid-vent... 5/0 5120 14