ENERGY company Metgasco has been told by the Independent Commission Against Corruption it will not be launching an inquiry into its shareholders following a referral by NSW resources minister Anthony Roberts because it is outside its jurisdiction.
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Mr Roberts announced last month that he had suspended Metgasco's gas exploration licence at Bentley, near Lismore, due to a lack of community consultation and concerns "about the way in which Metgasco has characterised its activities".
The minister also said he had referred the licence to the ICAC "following receipt of information concerning shareholdings and interests in Metgasco Limited".
It later emerged that Tony Bellas, the chairman of Metgasco's largest shareholder, ERM Power, is in business with Dennis Jabour, the nephew of corrupt former Labor powerbroker Eddie Obeid.
Mr Roberts announced the decision just days before police were due to be called in to break up a long-standing protest on the site.
In a letter to Metgasco released by the company on Monday, the ICAC says it can only investigate when there is a reasonable likelihood that a public official has engaged in corrupt conduct.
"There is no information currently before the commission that Metgasco's share arrangements falls within the ICAC's jurisdiction," it said.
In a statement to the stock exchange on Monday, Metgasco chairman Len Gill said Mr Roberts' announcement of the referral “had caused major damage to the company's reputation”.
“We were shocked and extremely disappointed that the Minister chose to publicly name Metgasco,” Mr Gill said.
“We are pleased to clear the company's name so quickly”.
A spokewoman for the ICAC said it did not comment on referrals to the commission.
Megasco has written to the Office of Coal Seam Gas advising it that the company regards its decision to suspend its licence as “unlawful".
The company has cancelled the drilling of a planned well at Bentley as a result of the suspension of its licence, a move it claims will cost around $3 million.
News of the suspension and referral to the ICAC led to $18 million being wiped off the company's share value.
Mr Roberts has said he stands by the decision by the Office of Coal Seam Gas to suspend Metgasco's licence and made "no apologies for being open and transparent about the actions we have taken".
