interesting

$240,000 green grant from State Government to underworld Mr Big

2009 Fri Oct 09

A COMPANY started by a businessman connected to an underworld Mr Big has received hundreds of thousands of dollars from the State Government.

Jacobus Smit helped establish Asia Pacific Coal and Steel in 2004.

The company is developing clean coal technologies with the help of lucrative public grants.

The Herald Sun has been told the State Government has lobbied on its behalf.

Mr Smit was once named in court documents as a one-time business partner of Mr Big in several property developments, and once owned the freehold to the Top of the Town brothel.

The pair were once neighbours, living in expensive bayside apartments.

Mr Big - who cannot be named - is a convicted drug trafficker who is alleged to have been involved in Melbourne's brutal gangland war.

In 2007, a police informer told a court Mr Smit handled large amounts of Mr Big's money.

"(Mr Big) would place at least 25 per cent of his money through Jack Smit, who would put the money into business and properties," he said.

"Jack also bought the Top of the Town with (the) money and (Mr Big) told me that $2 million had gone through there under the table."

Mr Smit resigned as director and secretary of Asia Pacific Coal and Steel in 2005 but remained a shareholder until this year.

In 2006, the State Government paid $240,000 to APCS, through its parent company Environmental Clean Technologies, to establish a clean coal project in Bacchus Marsh.

The success of clean coal technology is seen as vital to Victoria's brown coal industry and vast profits are expected if the technology proves viable.

Then industry minister Theo Theophanous said: "APCS's water recovery technology could provide an economically viable solution to cut greenhouse emissions from brown coal.

"This new technology has local and global potential to generate a high value energy product that is ready for export from Victoria."

In 2007, a delegation of Chinese diplomats inspected Environmental Clean Technologies' plant at Bacchus Marsh.

ECT chairman Dave Woodall last year criticised shareholders who started the company.

"The past behaviour of foundation shareholders is typical of those that use the company as a cash box," he said.

"We now have a commercial model that demonstrates the financial viability."

ECT chief executive Kos Galtos said Mr Smit resigned as a director and secretary after a meeting with other directors.

A State Government spokesman said probity checks were carried out.

http://www.heraldsun.com.au/news/victoria/green-grant-from-state-government-to-underworld-mr-big/story-e6frf7kx-1225784528265