In 2014,the Independent Commission Against Corruption heard that the allegedly doctored cabinet minute had been signed by then-infrastructure minister Kelly in May 2010.
It painted a glowing picture of a water infrastructure company with links to the Obeid family.
The minute recommended a billion-dollar public-private partnership in which the NSW government would pay Australian Water Holdings (AWH) to provide water infrastructure to western Sydney.
However,the original minute,which ICAC heard had been written by Brian McGlynn,an expert retained by the Department of Premier and Cabinet,had recommended the complete opposite.
McGlynn had noted that AWH had assets worth only $36,and the partnership would be an extremely poor deal for the people of NSW. He also said that on a scale of one to 100,he rated the AWH proposal somewhere between zero and 10.
Kristina Keneally,who was NSW premier at the time,ordered the allegedly reworked Cabinet minute be withdrawn.
Prosecutors have previously outlined that they will allege that Obeid wilfully misconducted himself between July 1,2007 and August 30,2010,by attempting to influence his parliamentary colleagues,former premiers Morris Iemma,Nathan Rees and Keneally,former treasurer Michael Costa and former water minister Phillip Costa “to promote the interests of Australian Water Holdings Pty Ltd,without reasonable cause or justification”,according to court documents.