A power company whose chairman is in business with the nephew of corrupt former Labor powerbroker Eddie Obeid was awarded NSW government contracts worth close to $1 billion last month.
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Records show ERM Power won an open tender to supply electricity to government departments including NSW Health, Attorney-General and Justice and Education and Communities.
On Thursday it emerged ERM chairman Tony Bellas is in business with Mr Obeid's nephew Dennis Jabour and has links to controversial Liberal Party identity Nick Di Girolamo.
Mr Jabour and Mr Di Girolamo have been embroiled in the Independent Commission Against Corruption's investigations into infrastructure company Australian Water Holdings.
In an April 24 statement to the stock exchange ERM said the contracts, worth $900 million over three years, meant ERM is now the largest electricity supplier to the NSW government.
ERM has also been able to secure a $100 million, 12-month extension to a four-year contract with the federal government.
Under the contract ERM supplies electricity to 80 government departments including Parliament House, Government House, the Australian War Memorial and NSW defence sites including RAAF Williamtown and Holdsworthy Barracks.
Asked on Friday if he had any concerns about the awarding of the contracts, NSW Energy Minister Anthony Roberts said: ''No''.
On Friday ERM sought to distance itself from Mr Obeid and Mr Di Girolamo a day after Mr Roberts referred an exploration licence held by gas company Metgasco to the ICAC.
Mr Roberts referred information he received about unspecified ''shareholdings and interests'' in Metgasco to the ICAC after suspending its licence at Bentley, near Lismore.
ERM Power is the largest shareholder in Metgasco, with a 12.8 per cent stake.
Apart from being in business with Mr Jabour, Mr Bellas is a former director of Australian Water Queensland, for whom Mr Obeid's son Eddie Obeid jnr once worked.
Mr Di Girolamo, whose gift of a $3000 bottle of Penfolds Grange Hermitage to Barry O'Farrell in 2011 led to his resignation as Premier last month, is also a former director of the company, which is a subsidiary of Australian Water Holdings.
In a statement ERM chief executive Philip St Baker said the company ''has not, and has never had any, connection'' with Mr Obeid and his family, Australian Water Holdings, Australian Water Queensland or Mr Di Girolamo.
ERM was not represented on the Metgasco board, not involved in its management and ''exercises no influence over the company'', he said.
Metgasco said it ''is not aware of any matter involving the conduct of Metgasco, its staff or of its shareholders that would constitute grounds for an investigation by ICAC''.
Mr Roberts has said Metgasco's licence was suspended due to insufficient community consultation.
But Metgasco chief executive Peter Henderson told ABC radio on Friday that the company had received no warning and would seek compensation from the state government.
Metgasco shares on Friday dived 44 per cent to close at 4.9¢. This values the company at $22 million.
