Former New South Wales premier Morris Iemma has told a corruption inquiry the strong relationship between former Labor ministers Ian Macdonald and Eddie Obeid was well known in caucus.
Mr Iemma was giving evidence at an Independent Commission Against Corruption (ICAC) inquiry into allegations related to the issue of mining licences around 2007 and 2008.
The inquiry has heard Mr Obeid's associates may have profited to the tune of hundreds of millions of dollars from decisions made by Mr Macdonald, the former mining minister, and that Mr Obeid may have had access to leaked information.
Mr Iemma said it was well known in the caucus that the two MPs worked well together.
He said Mr Obeid once tried to have Frank Sartor dumped from the planning portfolio and suggested Mr Macdonald would be more suitable because he would be better at "dealing with stakeholders".
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