Independent watchdog finds former NSW minister and Labor powerbroker acted corruptly and refers them for criminal charges
Criminal charges have been recommended against former NSW Labor party powerbroker Eddie Obeid and former NSW Labor energy minister Ian Macdonald after the independent corruption watchdog found they had acted corruptly.
The Independent Commission Against Corruption (Icac) handed down its findings on Wednesday into three separate inquiries which examined corruption in the former NSW Labor government.
The Obeid family, who have signalled they may appeal against the decision, could also lose their millions, with Icac handing evidence about their finances to the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (Asic) for investigation.
Evidence about how the family has made money is also being given to the NSW Crime Commission, which could lead to an application for forfeiture of assets and banks accounts.
Commissioner David Ipp found Obeid, his son Moses, Macdonald, mining magnate Travers Duncan and businessmen John McGuigan, John Atkinson, John Kinghorn and Richard Poole all acted corruptly and evidence has been handed to the NSW director of public prosecutions (DPP) to consider laying criminal charges against them.
The commission found the process of opening a coal mine in Bylong Valley in 2008 was rigged with Macdonald's help in his capacity as energy minister, making the Obeid family and some business associates tens of millions of dollars.
The Obeid family, as well as friends and associates, bought up vast tracts of land in the Bylong Valley, south-west of Sydney, months before Macdonald created the mining tenement of Mount Penny in the area in 2008 when he was energy minister.
The family made about $30m and stood to make up to $100m from selling the land to mining companies and their secret investment in Cascade Coal which won the mining exploration licence for Mount Penny.
Eddie Obeid released a statement within two hours of the reports being made public rejecting the finding that he had acted corruptly.
"It will be necessary for me to consult my legal representatives before any detailed response is to be published, but I wish to make it clear that I reserve my rights to seek judicial review in respect of the adverse findings," he said.
The commonwealth DPP will also be sifting through evidence to decide whether to charge Duncan, McGuigan, Atkinson, Kinghorn and Poole with breaching the Corporations Act.
Icac also found in its Jarilu investigation that Macdonald acted corruptly. Jarilu examined allegations he received favours – including time with a prostitute – from businessman Ron Medich in exchange for organising meetings with energy executives who ran companies with lucrative state contracts.
Macdonald arranged a meeting at a Leichhardt restaurant in 2009 between Medich and the managing director of Country Energy, Craig Murray, and was rewarded with a night at the Four Seasons hotel with a prostitute known as "Tiffanie" which was arranged by former boxer turned businessman Fortunato Gattellari.
Obeid's son Moses was also found, in the Indus investigation, to have acted corruptly.
But former Labor roads minister Eric Roozendaal was cleared, with Icac finding there was insufficient evidence to show he knew of arrangements that led to him benefiting from a $10,800 discount on a car.
While Icac found Moses had done the deal to try to "induce" Roozendaal into granting favours, it declared Roozendaal did not act corruptly.
Roozendaal, who resigned from parliament in the wake of the allegations aired during the Icac hearings, felt vindicated by the findings.
"I have always maintained that I acted appropriately and ethically during my parliamentary career and in the best interests for the people of NSW," he said in a statement.
"I am glad we can move on now."
Moses also released a statement saying he had been "open and candid" with Icac and denied any legal wrongdoing.
"Despite the immense pressure brought to bear on my family, I am committed to defending my good name and reputation whenever required in the future and I will do so with the support and strength of my family," he said.
