Mr Grugeon said there was uncontested evidence that ICAC counsel assisting Geoffrey Watson had told Charlestown MP Andrew Cornwell and his lawyer that the two businesmen would be  “emasculated” once Operation Spicer began.

Mr Grugeon and Mr McCloy said this showed they were right when they said the ICAC and Mr Watson had built a predetermined case around a few bits of evidence that were then wrongly presented as proof of some sort of grand conspiracy in which they and other respected Hunter business people were supposedly manipulating politics in the Hunter.

They said they had donated to both sides of politics – and had also backed Independents – over the years. But there was nothing in the ICAC report, despite all of the colourful language from Mr Watson, showed that either had ever asked for preferential treatment, let alone received it.

“The things that Mr Watson were throwing around would never stand up in open court,” Mr Grugeon said.

The statement that Mr Grugeon is referring to was written on July 21 by Sydney solicitor Robert Mangioni, who acted for Mr Cornwell two years ago over Operation Spicer. It was based on notes taken during a July 23, 2014 meeting that Mr Cornwell and Mr Mangioni had with Mr Watson and two other ICAC legal staff.

Mr Grugeon said it was tendered in a case that disgraced Labor figure Eddie Obeid had brought against the ICAC: its contents were not contested, which gave it “veracity at law”.

In the statement, Mr Watson says to Mr Cornwell: “We have a lot of flexibility in the report and the focus of the findings. Don’t worry about McCloy and Grugeon – they will be emasculated.

“I will promote you as one of the heroes, as we did with Rees, Keneally and Sartor.”

The ICAC counsel assisting is then quoted as saying: “I will stake my reputation on protecting your reputation. But there will be some issues. McCloy – you didn’t do enough. I won’t go after it but the press will be interested. And Grugeon – the press will be interested in the painting.”

Mr McCloy is using the statement in a formal complaint about Mr Watson to the NSW Bar Association.

FORMER Charlestown Liberal MP Andrew Cornwell was promised an easy ride by the ICAC, according to a statement by his lawyer that has been accepted as evidence in a recent trial.

The statement referred to in the article above provides an insider’s view of the inquiry’s modus operandi.

Counsel assisting the ICAC, Geoffrey Watson, is quoted by Mr Cornwell’s lawyer, Robert Mangioni, as saying the MP had “done the right thing” by coming forward.

“I will present you as a white hat,” Mr Watson is quoted as saying.

“This will be an opportunity for a platform for your future political career. You and [Newcastle Liberal MP] Tim Owen were not experienced politicians. You were taken advantage of by the party machine.”

Mr Mangioni’s statement contains three attachments, including a handwritten note signed by Mr Watson and the others present saying that nothing said at the meeting would be used against Mr Cornwell.

Contrary to Mr Watson’s assurances, Mr Cornwell resigned from parliament under intense pressure on August 12, 2014, three weeks after meeting Mr Watson.

Businessman Hilton Grugeon says the statement vindicates his criticisms of ICAC, but it also indicates that Mr Cornwell was worried about his influence.

Notes Mr Mangioni took into the meeting say: “Some of the new matters involve HG. He is an extremely influential and vindictive man. If AC’s identity as a whistleblower . . . becomes obvious, HG will victimise AC and his family”.

Mr Grugeon said he didn’t know why Mr Cornwell would describe him that way although he accepted that he didn’t “take a backward step” in dealing with governments or councils.