Macdonald's Obeid claims 'something out of a novel'

EDDIE Obeid's son has likened claims former Labor minister Ian Macdonald made major mining decisions to benefit his family as something out of a "Hans Christian Andersen novel".

Paul Obeid told a corruption inquiry on Wednesday that while his family was linked to several mining companies, Mr Macdonald had not purposely approved exploration in areas where they owned properties.

He also retracted a statement he made during a private preliminary hearing last year that chiefs at Cascade Coal, which won the tender in the region where the family owned farms, "knew they were dealing with Obeids" when a front company negotiated a 25% stake in the deal.

He claimed he had been under pressure at the time.

According to the Herald, the Obeids later sold their share for $30million and were currently demanding Cascade pay a further $30million.

Mr Macdonald was expected to take the stand on Thursday but his name has been transferred to Monday's witness list.



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