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| Eddie Obeid Jr denies he bought $3m of shares in Australian Water Holdings | Eddie Obeid Jr denies he bought $3m of shares in Australian Water Holdings |
| (5 months later) | |
| Edward Obeid Jr has denied buying $3m worth of shares in the water company Australian Water Holdings, telling a NSW corruption inquiry that the money was a loan to his friend Nick Di Girolamo. | |
| The Independent Commission Against Corruption (Icac) is investigating whether the family of a former NSW MP, Eddie Obeid, had a secret stake in AWH, and his family stood to make up to $60m if a lucrative government deal went through. | The Independent Commission Against Corruption (Icac) is investigating whether the family of a former NSW MP, Eddie Obeid, had a secret stake in AWH, and his family stood to make up to $60m if a lucrative government deal went through. |
| The former Labor powerbroker's son, Eddie Jr, on Friday denied that his family had a substantial shareholding in AWH. | The former Labor powerbroker's son, Eddie Jr, on Friday denied that his family had a substantial shareholding in AWH. |
| He said a 2010 contract headed "Sale of Shares" really recorded a loan to his close friend, the then AWH chief executive Girolamo. | He said a 2010 contract headed "Sale of Shares" really recorded a loan to his close friend, the then AWH chief executive Girolamo. |
| It did not promise $3m to Di Girolamo in return for half his AWH shares, he said. | It did not promise $3m to Di Girolamo in return for half his AWH shares, he said. |
| "It was all around the fact that when he couldn't pay back, if he couldn't pay back, I had the opportunity to take up those shares," Eddie Jr said. | "It was all around the fact that when he couldn't pay back, if he couldn't pay back, I had the opportunity to take up those shares," Eddie Jr said. |
| A further payment of $486,000 was an additional loan, not an investment in AWH, he said. | A further payment of $486,000 was an additional loan, not an investment in AWH, he said. |
| He admitted that Di Girolamo was yet to repay a single cent of the principal, nor any of the 10% interest he said the Obeids were owed under the terms of the "loan". | He admitted that Di Girolamo was yet to repay a single cent of the principal, nor any of the 10% interest he said the Obeids were owed under the terms of the "loan". |
| "Sounds like a pretty good loan, doesn't it?" counsel assisting the commission, Geoffrey Watson, SC, said. | "Sounds like a pretty good loan, doesn't it?" counsel assisting the commission, Geoffrey Watson, SC, said. |
| "I think I'm a fairly reasonable mate, yes," Eddie Jr replied, prompting Watson to quip: "$3,486,000 worth of mate." | "I think I'm a fairly reasonable mate, yes," Eddie Jr replied, prompting Watson to quip: "$3,486,000 worth of mate." |
| Eddie Jr agreed his inclusion on company emails directed at senior AWH executives and directors could suggest he had a central role in the firm, but he said he probably wanted to know about the company's internal affairs "just out of curiosity". | Eddie Jr agreed his inclusion on company emails directed at senior AWH executives and directors could suggest he had a central role in the firm, but he said he probably wanted to know about the company's internal affairs "just out of curiosity". |
| To which Watson said: "What curiosity? In respect of the internal business operations of a company in which you had no investment, no loans, no relationship, you'd done a little bit of work for them in Queensland apparently? | To which Watson said: "What curiosity? In respect of the internal business operations of a company in which you had no investment, no loans, no relationship, you'd done a little bit of work for them in Queensland apparently? |
| "It looks like you're pretty closely involved in the management, doesn't it, Mr Obeid." | "It looks like you're pretty closely involved in the management, doesn't it, Mr Obeid." |
| "From these emails, look, I can't disagree with you, but it's not the case," Eddie Jr replied. | "From these emails, look, I can't disagree with you, but it's not the case," Eddie Jr replied. |
| The inquiry in Sydney continues. | The inquiry in Sydney continues. |