Former Labor MPs acted corruptly

Written By Unknown on Rabu, 31 Juli 2013 | 20.02

The ICAC will today recommend whether former NSW MPs Ian Macdonald and Eddie Obeid should face charges.

Expect plenty of expressions like this today. Source: AFP

BREAKING NEWS: TWO former high-profile Labor MPs, Eddie Obeid and Ian Macdonald, have been found by the NSW ICAC to have acted corruptly and referred for possible criminal charges.

Following the largest corruption investigation in NSW history, the Independent Commission Against Corruption (ICAC) today handed down three reports.

Commissioner David Ipp has recommended that Mr Obeid and Mr Macdonald be considered by the Department of Public Prosecution (DPP) for possible prosecution over their involvement in the Mount Penny coal mine.

Mr Obeids' son Moses, and businessmen Travers Duncan, John McGuigan, John Atkinson, John Kinghorn and Richard Poole were also found to have engaged in corrupt conduct.

Operation Jasper investigated reports that Mr Macdonald rigged a 2008 tender process to grant a coal licence over land at Mount Penny owned by the Obeid family.

It enabled the Obeids to make $30 million, with the prospect of earning at least $70 million more.

As part of the Indus investigation, ICAC found Mr Obeid's son, Moses, engaged in corrupt conduct over a $10,800 car for former Labor minister Eric Roozendaal.

The corruption watchdog investigated whether Mr Roozendaal received a new Honda CRV at $10,800 - less than its original value - in return for political favours for his colleague, Eddie Obeid.

The ICAC reports said that Moses Obeid "provided a benefit to Mr Roozendaal as an inducement for him to show favour to Obeid business interests in the exercise of his official functions".

Mr Roozendaal was not found to have acted corruptly. More to come.

Earlier Prime Minister Kevin Rudd said he was "disgusted" by revelations that have been aired at the hearings of ICAC into members of the NSW Labor Party and anyone found guilty of illegal behaviour should face the full force of the law.

"That's what I want to see happen," the Prime Minister said.

"I've been disgusted by what I have seen in ICAC hearings so far and my view is anyone who is responsible for corruption or illegal behaviour should face the full force of the law."

Mr Rudd said he hoped the federal intervention into the NSW branch of the Labor Party would help clean it up.

"I would say it was for no idle reason that I took a virtually unprecedented step of directing federal intervention in the NSW branch of the Labor party," Mr Rudd said.

"This set of reforms are anchored in one core principal - zero tolerance for corruption - and I expect that to be fully reflected in the intervention we have taken."

ICAC today presented three reports relating to the business dealings of Ian Macdonald, Eddie Obeid and Eric Roozendaal.

The findings of ICAC's Commissioner David Ipp were expected to be damning.

These are the three reports and five things you might need to know about each of them:

OPERATION JARILO: In which a massage didn't have a happy ending...

'Who, me?' asks Ian Macdonald Source: News Limited

1. Sometimes referred to as the Tiffanie Report or the "neck massage" incident after the former NSW resources minister Ian Macdonald met a woman in a Sydney hotel room who, ICAC heard, stripped down to her underwear. Mr Macdonald testified he had gone there for a neck massage and fallen asleep.

2. In July, 2009, the then head of state power company Country Energy, Craig Murray, was invited by Mr Macdonald to a dinner at Tuscany, a restaurant in Sydney's inner-west Italian quarter of Leichhardt. Mr Murray went with a fellow executive for back-up, a worthwhile precaution.

3. Suddenly Mr Medich and another businessman sat down at a table which had been added to the one Mr Murray was sitting at, and made an uninvited pitch for business from Country Energy as Mr Macdonald looked on.

4. Mr Macdonald ordered four bottles of wine costing $130 each, but because Country Energy had strict rules barring gifts from business suitors, Mr Murray had to pick up the $850 dinner bill.

5. ICAC heard Mr Gattellari, an associate of Mr Medich and involved with him in a separate murder case, later paid $400 for a hotel room where Mr Macdonald later turned up (See Tiffany).

OPERATION JASPER: In which properties miraculously increased in value...

He who must be Obeid Source: News Limited

1. Labor powerbroker Eddie Obeid has declared his income was his pay as a member of the NSW Upper House but his sons ran a wide range of businesses, from cafes to roadside poles, and also had interests in coal leases.

2. Eddie Obeid, who had remarkable influence even as a back bencher, helped the career of Mr Macdonald, a left-winger, through his faction.

3. In 2007-08 the Obeids and acquaintances bought property in a valley about 250km north of Sydney as rural retreats. This changed in 2008 when Mr Macdonald agreed to open a mining area in the Bylong Valley for coal exploration, which greatly increased the value of the Obeid holdings.

4. Some of Eddie Obeid's profits, estimated to be in the several millions, from the property dealings went to the lease of a $300,000 Mercedes.

5. Mr Macdonald was given the nickname Sir Lunchalot because of his fondness for dining out, including his 2008 lunch of pork and beef and a magnum of pinot noir.

OPERATION INDUS: In which a remarkably cheap car was procured...

Eric Roozendaal Source: News Limited

1. In May 2007 Amanda Roozendaal, wife of Labor MP and former treasurer Eric Roozendaal wrote off the family Honda and the search for a replacement led to Eddie Obeid, who passed the matter to son Moses who was able to find a $44,800 Honda which would cost the Roozendaals just $34,000.

2. The Roozendaals didn't have the ownership papers at first and it was only Mrs Roozendaal's car accident - and her decision not to stop to pay for the damage - that revealed the trail of people who on paper owned the car but had never seen, raising suspicions in ICAC they were used to pretend the Honda was cheaper because it was second hand.

3. There is at least one good citizen in this saga. A professional musician who had business in Surry Hills saw the bingle-and-run incident and took down the Honda's licence number to give to the owner of the parked car which had been hit. The Roozendaals had been driving their new car for just two days.

4. Mr Roozendaal, a former ALP state secretary, was a supporter of the Obeid faction known as the Terrigals after the NSW coastal resort town. The Terrigals ran the state party and their support was needed to get ministerial jobs, and to become Premier.

5. ICAC has investigated whether the provision of a cheap vehicle played a role in any consultation by the Obeids with Mr Roozendaal when he became State Treasurer.

Cleaning up NSW Labor is seen as crucial to Mr Rudd's chances at the upcoming federal poll. The government needs to hold on to a host of western Sydney seats to retain power.

Opinion: Kevin Rudd insulated from corruption fallout

On July 4, Mr Rudd gave NSW ALP secretary Sam Dastyari 30 days to report on cleaning up the branch, and sought changes including the expulsion of any member found to be corrupt or engaging in improper conduct.

But Liberal MP Jamie Briggs said the Rudd "intervention" was all for show, as many of the key powerbrokers pulling the strings within the ALP were still in senior positions.

He said many of those who helped Mr Rudd return to the Labor leadership had strong ties with the ALP secretariat and had since been promoted by the prime minister.

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