The Independent Commission against Corruption (ICAC) of Australia has been told that the mining license granted to Doyles Creek Mining was a financially disaster for the state of New South Wales.
During the opening of hearing on Operation Acacia, ICAC counsel assisting Peter Braham said that the former labor minister Ian MacDonald had allotted a coal mining license in 2008 without competitive tender.
Operation was undertaken by the ICAC to probe into allegations of corruption by the former Labor state government on Hunter Valley license issued by Macdonald.
MacDonald was accused of granting the license to NuCoal Resources owned Doyles Creek that is chaired by MacDonald’s friend and former senior CMFEU official John Maitland.
Braham also asserted that the former minister tried to mislead the state by designating the license as training mine instead of mining mine.
"It was a financial disaster for the people of New South Wales and a goldmine for John Maitland and his associates," said Braham.
The inquiry also raised questions over Maitland’s investment that peaked to $15m from its initial $165,000 within three years of license grant.
ICAC commissioner David Ipp stated that it will look into how the tender process for Hunter Valley mining site was handled and the kind of profits made by NuCoal Resources.
Ipp is expected to submit his finding into the probe at the end of July 2013.