The Obeid family was paid $30 million with a promise of another $30 million after an alleged rigged tender process for a coal mining exploration licence on their land, a judge has been told.
Former NSW Labor ministers Ian Macdonald and Eddie Obeid, along with his son Moses Obeid, have pleaded not guilty to conspiring together over the granting of the licence at Mt Penny, in the Bylong Valley near Mudgee.
Macdonald, 70, Obeid, 76, and his 50-year-old son are alleged to have plotted between September 2007 and January 2009 for the former - then mineral resources minister - to "wilfully misconduct" himself.
His alleged misconduct involves breaching his duties and obligations of impartiality and confidentiality as a NSW minister in connection with the granting of the licence and in relation to the Obeid interests.
Prosecutor Sophie Callan on Thursday continued the crown address in the NSW Supreme Court, outlining a series of complicated company deals associated with the tender process.
The Obeids planned to be "silent partners" with whichever mining company won the bid to explore coal on their property, she said.
Moses Obeid had met with an investment banker who came up with a list of companies, resulting in negotiations with Monaro Coal which was not told who the banker was representing.
But when Monaro had financial problems, the Obeids began negotiations with another mining company, Cascade Coal, which put in a tender after the process was re-opened after the closing date.
Meanwhile, negotiations were taking place for the Obeids to take control of the Monaro tender which had been deemed to be the superior bid before the process was re-opened.
"In negotiations with Cascade Coal the question was what could he (Moses Obeid) bring to that negotiations in order to obtain some stake in a joint venture," Ms Callan said.
She alleged the Obeids then negotiated a 25 per cent stake in Cascade in return for promising Monaro did not win the tender.
After Cascade was awarded the exploration licence, the Obeids were to receive $60 million for the sale of their quarter-share in the company.
But eventually only half that amount was paid, she said.
The judge-alone trial will resume on Monday.
Australian Associated Press