Macdonald's mate denies $4m coal payout AN "old mate" of former NSW Labor minister Ian Macdonald has denied promising to pay him $4 million if he approved a coal mining deal in the Hunter. Greg Jones, a one-time investor in mining firm Cascade Coal, told a Sydney corruption inquiry on Thursday he had told his friend about his involvement in the company while Mr Macdonald was still the state's mining minister. The Independent Commission Against Corruption (ICAC) is investigating claims that Mr Macdonald rigged a 2008 tender process for coal exploration licences in the Bylong Valley and whether former minister Eddie Obeid and his family gained substantial financial benefit from it. On Wednesday, Eddie Obeid's son Paul denied that he had been involved in a "deal" with Mr Macdonald to create a coal mining tenement over properties owned by the Obeids, including Mount Penny in the Bylong Valley. The commission has previously heard the Obeids were to make $60 million on their exit from Cascade Coal. On Thursday, Mr Jones revealed he had discussed the payout with Mr Macdonald over lunch at exclusive Sydney restaurant Rockpool, adding the then-MP considered the $60 million deal "a good deal for his mate" Eddie. The commission heard the pair became estranged after Mr Macdonald left parliament because Mr Jones believed he still had "value" as a lawmaker and should have stayed on as a politician. "I was disappointed that I'd been left in the lurch," Mr Jones said. But when counsel assisting the commissioner, Geoffrey Watson, SC, put to Mr Jones that he had offered Mr Macdonald a five per cent cut if he helped ensure that a coal tenement be granted over Mount Penny, Mr Jones responded "no." The commission was shown a note in Mr Jones' handwriting under the heading Cascade Coal, which said "Mt Penny - 5% - $4 million by June 2010." Mr Jones said he had "no idea" what the $4 million referred to and denied a suggestion from Mr Watson that this was a fee to be paid to Mr Macdonald. Documents tendered to the commission also showed Mr Jones loaned Mr Macdonald $195,000. However, in the witness box, the businessman was unable to recall the terms of the loan or when it was agreed the money would be paid back. "This loan to Macdonald was occurring right smack around the time you were talking to him about your involvement with Cascade Coal," Mr Watson said. "It would appear that way, yeah," Mr Jones responded. Can you see why the passing member of the public might think there's a cloud over this? Mr Jones conceded they might but testified that he was simply helping out an "old mate" when he loaned him the thousands. The inquiry continues before Commissioner David Ipp. Mr Macdonald is expected to give evidence on Monday.