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Ian Macdonald faces jail time after being found guilty of misconduct

08:23 UTC+8 March 30, 2017

Ian Macdonald has been found guilty. (AAP: David Moir)

Former NSW Labor minister Ian Macdonald is facing jail time after being found guilty of misconduct in public office for issuing a mining licence to a company run by former union boss John Maitland.

The crown argued that as minister for primary industries and mineral resources at the time, MacDonald put his friend Maitland ahead of the state when he awarded a mining licence to Doyles Creek Mining without a competitive tender.

Maitland, former head of the Construction, Mining, Forestry and Energy Union (CMFEU), has been found guilty as an accessory.

The NSW Supreme Court heard during the trial that the decision by Macdonald to give the licence to Maitland lost the state tens of millions of dollars at a time of "budget constraints".

Macdonald argued he awarded the Hunter Valley licence on merit and that he and Maitland were not "mates", as the crown alleged — just political associates.

Former CFMEU head John Maitland Photo: Former CFMEU head John Maitland has been found guilty as an accessory. (AAP: Tracey Nearmy)

Both Macdonald and Maitland have been released on bail and the sentencing hearing will be held in six weeks' time.

The crown indicated they would be seeking a custodial sentence for Macdonald.

Premier Gladys Berejiklian said that after years of speculation about Macdonald's activities, she was glad he had been found guilty.

"Throw the book at him," she said.

"I think the public wants to know that if people are found corrupt they're actually dealt with appropriately through the courts and anyone found to do the wrong thing should receive the according punishment."

During the trial, former NSW premier Morris Iemma gave evidence that he did not recall Macdonald seeking cabinet approval to grant the mining licence to Doyles.

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